Government failures continue
(CNS): Looking back at a special report from the Office of the Auditor General (OAG) conducted in 2005 demonstrates that government has learned few, if any, lessons regarding procurement and the management of public money. Commenting on the report conducted by his predecessor into the original affordable housing initiative, which threw up numerous anomalies and questions, Alastair Swarbrick has said the report and the two follow-up forensic audits found the same problems that his office is still finding in government in their contemporary work some seven years after these were conducted.
Speaking at the Public Accounts Committee meeting in the Legislative Assembly on Wednesday, the current auditor general said the whole point of the OAG’s work was not only to hold people accountable in government but to provide an opportunity to learn lessons. He said there was little value in commenting in detail on his predecessor’s findings in the specific case of the housing project because of the time that had passed, but the continued repetition of the same problems in procurement now was of significant concern.
“Most of the issues and concerns that are raised in these three reports bear a striking resemblance to issues that my office and others have identified over the last few years in respect of procurement, project management and governance, including issues recently identified at the National Housing Development Trust during 2011,” Swarbrick told the committee.
“The true value of effective audit and scrutiny, apart from ensuring that public officials and entities are held accountable for their actions, is to ensure that government and its agencies learn and continue to improve so that the citizens of the Cayman Islands receive better services, outcomes and value for the funds that they entrust to government. It is of concern to me that that these three reports highlight issues that continue to be significant today, therefore casting a shadow over effectiveness of accountability of government to their stakeholders,” he added.
Swarbrick explained that the special audit conducted by his predecessor, Dan Duguay, was the first of three relating to the Affordable Housing Initiative and National Housing and Community Trust. The second two were ordered by the governor as a result of the findings of the first, which triggered a police investigation.
The two reports for the governor were placed in the public domain but the first has remained under wraps because it was conducted under the old PAC rules, when reports could not be released until the committee had examined witnesses and concluded its own report. As a result the report is still secret.
However, PAC finally got down to examining the report Wednesday and the former community affairs minister, Dr Frank McField, was called before the committee and given an opportunity to put his side of the story.
However, none of the PAC members questioned McField, the former UDP minister and outspoken character, who, apparently recovered from his recent unexplained gunshot wound, gave a long opening explanation. He denied any personal financial gain, which he said was implied by the report, but admitted that protocol was not followed and, given the circumstances, corners were cut, but he criticised the way the information was released.
“My reputation was stained by the way in which the previous auditor general handled the publication of his findings,” McField told the committee.
As he spoke about his motivations for the project, which was to help those in need get affordable homes, he said that paperwork was not always there and protocol was not followed but that was a widespread issue in Cayman government as it has not yet matured to the bureaucratic standards now required.
McField also defended the quality of the homes that were built, noting that government had been able to raise a loan from the bank and get the homes insured, something that would not have happened had the homes been as substandard as people now claim.
Nevertheless, he said that information given to the auditor general during his investigation, which took place after he was a minister, was not accurate. He said that people say different things when they do not have to face the person they are talking about as he warned the OAG to be wary of what people say.
“You have to be careful what people tell you when they turn their back,” he said. McField stated that the cash that was given to Staunch, the second contractor hired to do the repairs after Hurricane Ivan, was to buy materials in Mexico. “When I tell people I am poor now they don’t believe me as they say I got the money,” he told the committee and denied any personal gain.
Although the first report has not yet been released publicly, an FOI request made by CNS in 2009 for an affidavit Duguay had given to the police revealed that the then auditor “uncovered substantial reasons to suspect bribery and corruption" between McField and the contractors.
The partially redacted document relating to the first forensic audit report which triggered a police investigation revealed suspicions over the personal interventions by McField in his role as minister to ensure that Staunch was awarded the contract to rebuild the homes destroyed by Hurricane Ivan, and various other irregularities that suggested kickbacks and misappropriation of public money.
Duguay found that Staunch was awarded contracts in the absence of proper tendering, payments were authorized 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 byStaunch to Capital Trucking, a firm owned by McField.
Related article:
Papers reveal AG's affordable housing concerns
See released affidavit below.
Category: Politics
We all know how it works here. A kickback for this, a favour for that. In good economic times the thievery could slide without major impact on the average Joe. In bad economic times it has come back to bite us in the backside. Those of us who ran and continue to run honest businesses are the ones that suffer
If Dr. Frank runs again will he receive Staunch support?
You can't teach old dogs new tricks. Once corrupt, always corrupt. Time for new or total failure time. Is there really NO new Caymanians ready to step up and lead the right way? Maybe you need an expat to show the way? If this is not culturaly acceptable then Caymanians will go the way of the Caymanian Parrot for all the right reasons. Either way SOON come. For the sake of these islands we all call home.
We have honest, intelligent competent persons coming forward forthe 2013 elections who will clean up the corruption. WE DO NOT NEED ANY EXPAT TO DO THAT!! Please do not fool yourself to think that only Caymanians are corrupt
Please do not continue to fool yourself. Over and over and over. I did not mean to insinuate that ONLY Caymanians are corrupt. (But I can see why you would go there) If you don't need exat help to pull your government out of the gutter then by all means do it already!
Keep up the good work Mr.Swarbrick and do not let up the pressure on our Govt Depts.Its high time they all towed the line so that we can get back to an open and transperant Govt and hopefully weed out the wrongdoers hiding the true picture from the good people of these islands.After all we OWN them while they are working for us and not the other way around.
Why are you all making noise against corruption? Cayman was born of corruption and would still be a sleepy fishing village but for the needs of drug dealers and terrorists to launder money and hide ownership of assets. Remember your past! Suitcases of dirty money showed up and this was normal. Locals saw the rich and the evil hide their wealth and do their shady deals in this offshore jurisdiction, and they learned their lessons well. As they reach for a piece of the pie in the way that the corrupt Westerners taught them was normal and acceptable, here people are talking about stamping out corruption. Cayman IS corruption, and you are sullying your past by pretending it's not.
PS – CNS, Mac's going to be pissed at you for this article…
I came to Cayman in 1968 and there was NO corruption. You say that “cayman was born in corruption” and then you go on to say it was a “sleepy fishing village”. You are contradicting yourself because sleepy fishing villages with no money don’t have corruption – what would be the point? You sound like a bitter troll to me! And… All of you who who ticked the box and agreed with the writer should be ashamed of yourselves.
08.01 I agree with you wholeheartedly. I entered the work force in 1967. Cayman was a beautiful place with no corruption and while that is not the case today we do have a past that we can be very proud of. Let us just take a few steps back- and take a look at the other person in the corruption ring. Ninety- nine times out of a hundred there is another person who is non-Caymanian on the other end of the deal. Corruption is ot prejudice- it will thrive where ever there are dishonest people!! Corruption does not care if you are black or white, local or expat!! Corruption does not normally happen by just one person, there are always other people benefiting from it and egging it on. I am not justifying it but please remember that people from other places came here with their sophisticated ways of wheeling and dealing and unfortunately some of our people got caught up in it. It is wrong but always bear in mind that it happens everywhere. We in Cayman did not invent corruption and they are very many of us who are not corrupt and will do what we have to do to make changes. I hope those of you from other countries who are so eager to “dump on us” will also do what you have to do to clean up your countries- then the world will be beautiful again- including my beloved Cayman.
"…personal interventions by McField in his role as minister to ensure that Staunch was awarded the contract to rebuild the homes destroyed by Hurricane Ivan, and various other irregularities that suggested kickbacks and misappropriation of public money…Duguay found that Staunch was awarded contracts in the absence of proper tendering, payments were authorized 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".
"[Mr. McField] denied any personal financial gain".
Are we living in the twilight zone?
I wonder if Capital Trucking owned a truck?…. or was it all about Capital?
When using good ole'Caymanian common sense………oh nevermind.
Where is the ATTORNEY GENERAL? DO WE STILL HAVE ONE? For Gods Sake Sir if you care one iota about these Islands that has embraced as a young man and has given you the opportunity excel in your profession, do some thing!! Please don't let these abominations continue, show us that you're worth the "GENEROUS" salary you're being payed.
Just another day in the Cayman Islands.
Now let us consider the Chinese Port deal which has gone quiet in recent weeks, which deal in my mind will never come to fruition. As a supporter of the Chinese our honorable leader and Minister of All Tings whose signature is reflected on paper value of our currency he must be aware of the sayings of his late colleague in China, Confusius, who passed away without visiting our friendly shores. I give you but one which went something like this.
In a country well governed, poverty is something to be ashamed of. In a country devoid of good governance, wealth is something to be ashamed of.
Ponder accordingly.
Nothing will change until the current working generation is retired and out of office. They will not cease to be greedy, anti-intellectual, languid, venal, inexact and unenlightened, ever. It was imprinted in them by the smallness of this community during their formative years and was an entirely predictable consequence of unmanaged, unbridled economic growth. Back then, all you had to do was open a business and count the cash. Now they leave my generation with enormous challenges. They think everything is free and nothing has a cost because, hey mon, the sun is shining, the peppers are hot and the coconuts are sweet no matter what they do. Reality and propriety just need to saddle up to a bar and relax, they say. Too late, if ever, will they realise wealth by itself is not prosperity.
Why can't these people making these decisions be held accountable and charges be brought against them in a court of law. Are they royalty? Are they saying that they are not responsible for their actions? is Grand Cayman still a land of tribal laws? Arrest them, Charge them, Make them prove innocence in the face of all the facts that show otherwise! Or take their hands out of the cookie jar and lock it up. Its not their money and it was never intended for personal use. Or is it true that if you are an "honorable" Caymanian in Grand Cayman you CAN break any law and not be held accountable? Tell the truth. For once.
fortunately, this island still follows the idea that one is innocent until proven guilty and despite the best efforts of the Premier to say otherwise
Hi, I'm a Caymanian, an MLA, and I have a law degree. Based on my logic and recent experience, the fact that neither the NRA Law nor the Roads Law prevents McField from doing this, he is completely innocent of any wrongdoing, and we demand a public apology from the OAG forthwith.
I rest my case.
Bobbing,weaving and tiefing!
Cayman's government culture is changing, albeit very slowly and sometimes painfully.
Corruption and incompetence are slowly but surely being replaced by ethics and competence.
There will, of course, be ongoing running battles between the forces of good and evil. Hopefully good will prevail.
The offices of the Auditor General and the Freedom of Information are leading the charge. I wish them well.
Slow is not the word. I have seen entire species evolve in less time.
You must be a pretty old fella then :<)
what about some more awards for your great civil service…mr manderson???
And on and on and on and on……..! When will the officials responsible for these shoddy and (alleged) corrupt practices both past and present ever be held accountable for their actions? Where is the will to follow the AG's stirling efforts and bring the Cayman authorities up to even a half decent baseline standard of governance and oversight that the people of Cayman deserve? It's all so depressing!
How is it government makes this all appear to be some sort of rocket science when hundreds of people – sadly, fewer all the time – can run businesses in the appropriate manner. Being careful with the funds they have and maximising return. The theory seems to be that once money leaves your hands, and is in the hands of CIG the, it is not longer necessary to account for it. That isn't just a deficiency, it appears to be a mindset.
I know this is alittle off the subject but it does have to do with the government. Didanyone read "emergency call out to the police if they are not on patrol" will cost the person 50.00!!! Can someone clarify that a bit. What do you mean you will be charged 50.00 for an emergency call out and the police are not out on patrol I sure as hell hope that the police are out on patrol 24 hours a day 7 days a week. Since when does a private citizen have to pay for an emergency call out????? Please someone clarify this for me for maybe i ready wrong
I do not know what you are taking about, but emergency call to 911 and then subsequent call for an ambulance, cost my insurance like $100.. I am still not sure what it was for? keep in mind, I am not talking about transportation to the Hospital, just a call.
There was an article in Cay Compass stating 50.00 for cal out for emergency if police are not on patrol.