Archive for February 16th, 2009
African migrants drowned at sea
(BBC): Nineteen people, including an eight-year-old girl, drowned when a migrant boat capsized off the Canary Islands, Spanish rescuers say. Three people are still said to be missing after the boat, mainly carrying North African migrants, overturned off the eastern coast of Lanzarote. Local residents rescued six people from the boat after Sunday’s accident. Rescue helicopters have been scouring for any other survivors, but police say hopes are fading fast. Go to article
New papers reveal AG’s Affordable Housing concerns
(CNS): Despite the Royal Cayman Islands Police Service’s recent announcement that there was not enough evidence to bring any criminal charges regarding the mismanagement of funds on the Affordable Housing Initiative (AHI), documents released under the Freedom of Information Law reveal that Auditor General Dan Duguay had “uncovered substantial reasons to suspect bribery and corruption" between the minister involved and the contractor.
In an affidavit which Duguay gave to the RCIPS following his forensic audit of the National Housing and Community Development Trust, the organization which was managing the AHI on Grand Cayman, the auditor general set out his concerns over a number of issues and made it clear why he felt a police investigation was necessary.
Among them were the numerous personal interventions by the minister at the time with responsibility for housing, Dr Frank McField, to ensure that contractors Staunch Limited were awarded the contract to rebuild the homes destroyed by Hurricane Ivan, and various other irregularities that suggested kickbacks and misappropriation of public money had occurred.
The affidavit, obtained by CNS under the FOI Law, contains details of Duguay’s suspicions, based on his investigation, that Staunch Ltd was awarded the contracts without due process and that payments were made to personal bank accounts that were not properly accounted for, arousing suspicion of kickback payments.
Duguay said Staunch was awarded contracts in the absence of proper tendering, payments were authorized to Staunch by McField against the advice of senior trust officials, dates on letters were altered to give Staunch additional contracts after the election, large amounts of cash were withdrawn from bank accounts and other suspicious amounts were paid by Staunch to Capital Trucking, a firm owned by McField. Duguay also raised concerns about Immigration Law breaches by Staunch over a number of employees.
“My office expressed concern during Phase 1 of the AHI that there was no competitive bidding on contracts. I must again express concern with the absence of competitive bidding processes and the overall manner in which contracts are awarded by the NHCDT,” Duguay wrote.
In his affidavit Duguay explains that, following a dispute between McField and Vetromeccaniche, the minister ordered officials at the NHCDT to give the contracts to Staunch, despite the fact the company had no construction history on the islands. Moreover, although officials at the NHCDT had raised concerns over Staunch’s ability to do the work, McField still directed the contract to be awarded to the firm. Duguay states that there were numerous occasions when the minister directly intervened to order officials at the trust to pay Staunch despite work not being completed.
The AG also cites a number of cash payments and transfers, as well as cheque payments made between various bank accounts and individuals that could not be explained. Although some of the details in the documents requested under the FOI law have been redacted, it appears that around $300,000 was paid into a personal bank account of an individual member of the Staunch management team from NHDCT without a legitimate explanation. Duguay also states in his affidavit that at least six Staunch employees who were working on the island were listed with immigration as visitors with no right to work.
In his affidavit Duguay states that the use of large sums of cash was something that commonly occurs in cases where bribes and kickbacks have been alleged or proven – in other words this was a red flag to the government auditors. “The large amounts of cash paid out in this case certainly provides in my opinion the opportunity to pay significant bribes or kickbacks to individuals,” Duguay said
Given the various payments that passed between the NDCHT, Staunch and Capital Trucking (McField’s own company), Duguay stated that he was concerned about the relationships and the links between the three parties, and it was because of these unaccounted for cash payments combined with the unorthodox way that McField ensured Staunch was awarded the contracts, that Duguay believed there was a need for the RCIPS Financial Crimes Unit to take up the investigation.
Three years after beginning their investigation, however, the police announced in January of this year that no charges would be brought in the case. Police stated that a legal ruling given by an independent UK Senior QC, following examination of the case file, exhibits, papers, statements and interviews, advised that there was insufficient evidence to lay any charges against those involved and the investigation should be closed.