Key authorities in trouble
(CNS): A number of the government’s key authorities are not only losing money but facing major management issues from board interference and bad debts to a lack of compliance with tendering processes and the laws which established these entities. In his latest report looking at the state of all of government’s statutory authorities and companies (SAGC) for the financial year ending 30 June 2012, the auditor general has highlighted many weaknesses in the business models and has raised significant questions about Civil Aviation, the Airports Authority, the Maritime Authority, the Port Authority, Health Services Authority and the Tourism Attraction Board, as well as the usual suspects: the Turtle Farm and Cayman Airways.
While financial reporting and governance environments at many SAGCs has begun to improve over the last few years, Alastair Swarbrick’s latest report demonstrates that, like central government, the semi-autonomous public entities are also still struggling with a catalogue of issues. These undermine their performance and put at risk the tax payers' money injected into these entities as a subsidies or as payments made by government for their services.
In a detailed analysis of the 26 entities that were audited for the financial year ending on 30 June 2012, less than half were able to meet the statutory deadlines in preparing financial accounts. In the final analysis one entity, the Children and Youth Services Foundation, failed to complete any financial accounts, ten others received qualified opinions and one, the Sister Islands Affordable Housing Development Corporation, was disclaimed. Of the remaining 14 that were given unqualified opinions, Swarbrick indicated that there were still many problems in the management and financial stability of these government-owned entities.
Notwithstanding some improvements, the Office of the Auditor General (OAG) report pointed to many shortcomings, including the failure of the SAGCs to table full reports to the Legislative Assembly in a timely manner, which Swarbrick said was fundamental. There were still financial management problems in many, as well as board interference and conflicts of interest that are not only undermining the running of many of these authorities and companies but leaving public cash vulnerable to abuse.
“There are still fundamental gaps in the accountability of government for the use of public resources and a significant way to go before financial accountability is restored,” Swarbrick wrote, despite his indication that things are improving. “My reports also highlight the significant weaknesses in governance and control frameworks that I believe are impeding the ability for entities to prepare timely and accurate financial reports.”
Swarbrick highlighted a litany of problems that authorities face. Some he found were already in dire financial circumstances, and while others were holding on, there were warning signs of significant future problems with their future viability. For some, it was not just a matter of poor financial performance and waste but conflicts of interest and mismanagement. SAGCs were straining government coffers while receiving payments and subsidies from the public purse but still returning further deficits.
The problems he found were varied and plentiful and although all but two of the 26 entities audited raised questions and concerns for the audit office, Swarbrick pointed to the Airport Authority, Civil Aviation, the HSA, the port and the Tourism Attraction Board as particularly troubling.
Breakdowns in governance, political interference and conflicts of interest at the Airport Authority were just some of the reasons why the CIAA received a qualified opinion. Swarbrick highlighted an already well-documented catalogue of concerns at the airport, including the former minister’s direction to the board regarding operational matters.
The report stated that McKeeva Bush provided direction “beyond his lawful authority” and directed who and how many ground handlers there would be, two of which were owned by board members at the time. The board also interfered beyond its authority with staff and operational matters. The conflicts of interest were also “so pervasive” they had the “potential to undermine the ability of the board to operate in the best interests of CIAA and negatively impact its financial performance.”
The report also indicated serious problems at Civil Aviation, where one of the reasons for its qualification was the potential lack of disclosure of related party transactions by the board. Swarbrick said there was evidence of a breakdown between the board and management and a pay dispute. He also found policy and human resource problems affecting the governance of the CAA.
The Port Authority was also facing a litany of problems undermining its ability to operate. From issues over related party transactions and the absence of good governance standards for the board to non-compliance with the port regulations and its increasing liabilities, Swarbrick highlighted several internal control and financial management concerns. The auditor also noted the amount of money the port authority had spent on legal fees trying to fight FOI requests at the direction of the board.
The HSA faced major issues, especially over bad debt. Its qualified opinion related to problems the auditors found with revenue records, the accuracy of the accumulative deficit, as well as the hospital’s difficulties in absorbing patient care costs that government had not covered as it exceeded the Ministry of Health’s budget.
Although the Tourism Attraction Board is much smaller than the other four critical authorities, the significant amount of problems raised serious concerns. Swarbrick said the number of internal control and other governance problems were so bad that the TAB was at risk of error, fraud and misuse of public funds. From serious discrepancies in the management of cash to theft and misappropriation of money, the report pointed to more ministerial interference. Bush, who was the minister and premier at the time, had reportedly indicated who should be given contracts to supply services.
With numerous problems still facing SAGCs, Swarbrick noted that even the ones that are improving are hindered by the fact that reports are not being made public. The importance of accountability was highlighted by the number of problems the auditors have found and now exposed some two years after the fact. Swarbrick said that until reports are completed and made public in a timely fashion, the Legislative Assembly would continue to remain in the dark about how SAGCs collect and spend public cash.
See the OAG full report on SAGCs below.
Category: Politics
These people must be on drugs…
Look this missing CI$1 billion is nothing new. Its been going on for yonks but people seem to have short memories. Look back to 2008 and you will find a similar story. It doesn't make it right but its normal. As long as thepeople of the Cayman Islands remain silent and passive their elected representatives will continue in the same way as they have always done.
Look and see the Truth. This Government is failing for all the right reasons. Fools ONLY do foolish things. If it is to run correctly the Caymanian people need to stop hireing (voteing) in family and start to look at real qualifications, skill and experiance. In other words the Caymanian people need to grow up and then grow a pair. All Caymanians should be embarassed at how pathetic their nation is doing instead of being angry at expats for pointing it out to them. Smart money is on nothing being done till the inevitable take over. Hopefully for the island it comes soon instead of soon come.
All you peope ha ve no idea what is it to sacrifice to mange th government for many years. We could have luckrative public service mangerial careers but we choose to serve the public.
You are incorrect and ungrateless!
And you are illiterate.
And you fell for the obvious troll.
Must work for gowernment 🙂 …… Big job too!
Perhpaps its time you quit and leave the management of Government to some one else? Maybe some one who can spell? Or manage? Or do simple mathematics.
A committed Mac voter . . .
I'm so very tired of learning of more and more situations like this, year after year.
Yet nothing meaningful happens!?
So many highly paid top brass….and for what?….Surely not for "Good Governance"!
At this point our only hope is for the UK to step in as they did in TCI.
Will that happen?….
WHAT A SHAME
THe Dept Heads are high earners and yet still there is no property management of funds
How much longer will Joe Public not March the streeter and start holding the Whole Dept responsible for Mismanagement?
No one wants to be the bad guy and Manage with Integrity?
See there is too much a a Popularity contest it seems to speak up an call a spade a spade
UK takeover sounds like a better pill to swallow
If you actually meant better rather than bitter then I am with you all the way.
seiously past and present governments are not capable of running this country ! all this is leading to is direct rule from the UK and at this point i won't mind because the greed Caymnian politcians nd civil servnts are destroying this country! out cidrn will suffer for this in the future
all of these revlations make the EY repot seems like the most sensible thing to do is sell all off everything they are only bringing this country down !
Careful what you wish for. Keep up with the UK press and you might think twice.
Shouldn't there be an immediate public address by the premier and the minister of finance after all these revelations of corruption, theft and incompetence?
orare they contemplating forming another committee or hire some third party accountants to investigate the findings of our Auditor General?
Alden Marco please speak to us!
Too late. People are clearing off and securing their pension.
They can't. The same auditor is the one that refused to release their figures. What can they do?
CNS – it should be noted that the Auditor General repeats published findings from his 2011 audits and Report in the 2012 Report. Also, he makes references to events which occurred in 2013 in this 2012 Report. Is it possible to enquire the purpose of that tactic from the AG's office? One would imagine that each Report would address events and concerns uncovered during that specific audit period. Anything otherwise could be misleading – unless that is the intent.
Nonetheless, the overall picture is being revealed and shows the depth of many public servants' disregard for integrity with public finances and indeed their ineptness. It extends from head to toe and hopefully a very thorough investigation will be conducted and concluded (not like Tempura).
Maybe he repeated the 2011 report comments because no one paid any attention last time, and as a result the same problems occurred in 2012, and he can already see evidence of the same thing has happened in 2013. But some people would rather believe it’s all a conspiracy. Perhaps the man is just doing his best to get us all to wake up and realize the size of the problem – hundreds of millions wasted, stolen, squandered, year in year out and no one does a damn thing.
Or maybe not. Who's to know?
Why would a competent Civil Servant doing Accounting/Finance stay with Government?. I have been there and done that – absolutely no accountability on part of any CFO's – and please prove me wrong on this point. Plenty of jobs in private sector, especially when the vast majority of firms have to import the expertise.
If you have competent Accounting/Finance people, then why are they still working in their posts year after year and the $$$ isn't accounted for!!!
Well, the answer is that Chief Officers lack the courage to do their job and make the Ministers run all over them like little civil service PUPPETS. Again prove me wrong on this point. You go to meetings with the Minister, Chief Officer, CFO and a few staff – only input that matters is what comes from the Minister – now I finally can understand the frustrations of people like Mr. K. Gomez.
Alden needs to do something about this! There are thousands of "suitablly qualified Caymanians" available out there …… apparently. We know that they are being repressed by the system …….. allegedly, for some strange and inexplicable reason.
We need to replace these incompetent furreigners in senior positions!
………Oh wait! ?????
I am a Caymanian ,unless a Braca is not considered a Caymanian, and I am amazed after reading Mr Swarbicks report. We have built up a reputation of being dishonest and unreliable. There is no wonder that so many of us who cant get employment.
Send your letters over the pond. Have The Queen stop the welfare check because the momma running around spending the baby milk money.
As if this pill isn't hard enough to swallow – a BILLION unaccounted dollars on an island just over 20 miles long. I am not only appalled by this reveal – I am very concerned there hasn't been any public backlash so far…..and not even a response from our government!
The implications of this are huge. Obviously, there is corruption behind this in some shape or form. Do you know that with one billion dollars every child in the Cayman Islands could attend public school for free, be provided a lunch and uniform? There is so much things one billion dollars that could make all of our lives so much better. What about solar panel subsidies? CUC tax breaks? Reduced import duties for residents? Sadly, instead, OUR money which we pay out of our pockets is given to the individuals in power at government and they are pissing our livelihoods away.
Every stable, prosperous country goes hand in hand in how much basic necessities are provided for its citizens. Don't you think if our people didn't have to struggle to ends meet, they would be less stressed…in turn they would become more producive citizens in our society?
Enough is enough! These weasels are still in positions of power and there hasn't been even a squeak of remose or defence!
How shameful it is that most of us feel scared to say something over fears that it will come back to haunt us. How sad is it that those who feel strongly against this are afraid to reveal their name and feel utterly hopeless. This has to change. This is no longer about who is more important, who has the money or who has the "power". The power is in the people! Cayman is a very prosperous nation. Billions of dollars flow through this country every year. It is time to stop with the favoritism and unregulated mis-management in the entity which is supposed to have the best interests of its people. We Caymanians need to step up and make demands from the so called leaders of society. We have enough resources and clearly enough cash to form our own ideas fora better nation. It is time for the people to come together and form a vision of what we want our country to be in the next few years. It's not too late. It is going to require all of our citizens to put away our differences and come together. In the meantime a petition needs to be formed. Remove these individuals from government NOW. Not tomorrow. Not next week. Enough is enough!
FOI is our best alley. Let's work together to bring the cronyism of government to light. let's also open discussion on the aspects of our society that needs to change now. In your daily life, what 5 things affect you DIRECTLY and you want to change? Cayman needs every citizen to have a voice. Loud and clear. It's time to stop the fear. Why are we letting these people emabrrass us and our country? The expat workers can just shake their head and move on. They have the option of leaving this country whenever they want. We do not have this option. STOP THE MADNESS!
Well you have not been brave enough to post your name not that i blame you for that. But lets start with you, taking the risk and shouting from the roof tops at the systemic corruption. While we are all busy hating expats our attention is drawn away from the things that actually matter.
What makes you know he is telling the truth?
Cesspit!
Are we honestly surprised with the amount of Private business being run out of these authorities by Chief officers and senior staff on Government Time I am surprised we ain't bankrupt yet??? As for the RUBBER stamp boards Oh well filled up with political minions and lodge Cronies. Same old same old.
Once again the problem of the working class Caymanian is the ruling class Caymanian. The corruption has seeped into all families so only a non-partial knife will cut the crap.
I never thought I would say it, but please send in the queen, Turks & Caicos survived and we cannot clean our own house.
Speaking of Authorities (and when we investigate the Botanic Park) WHY are wwe still payinh CI$175,000 per year to the Manager of Pedro St. James? Has no one looked at these crazy Authority contracts?
$$$ Stop the cronyism…
$175,000…..for what..?…..I thought paying the CNCF head $100,000 was crazy but this. What exactly does the CNCF do to deserve that kind of wasted public fund…?
This is unbelievable!!!! This is for Pension Purposes, and yet those that have worked for long years say 20 and 30 years leave with a drop in the bucket pension.
Couldn't have said it any better myself – one of our politicians runs multiple businesses and is a board member of a private sector company – guess what some of those employed are now all of a sudden on boards in which they absolutely have no experience. Not going to mention the type of boards, but not hard for anyone to figure out. Only said that to say this – such an employee doesn't have to worry about their job as they are essentially being paid by the politician to go board meetings (perhaps in addition they also may get a stipend from the board itself) – and we presume there is not a conflict of interest LOL!
So, big headline "Key Authorities in trouble". Do you really expect that Government and/or Governor will do anything about it? Come on now CNS – you are only reporting news that is repeated year after year, government after government. Auditor General continually points out shortcomings and nothing happens.
Solution – UK should thoroughly audit every single government departmentministry/company.(but then again one of our politicians mightl somehow wiggle their way around the law and get a friend o business associate from UK to do such an audit)
In order to get any funds approved – complete up-to-date documentation must be provided – absolutely no need for FOI
Cayman expects to be a leading offshore financial destination – all the while our Government cannot account for their own money -go figure.
Please explain how the Leglisitave Assembly can make informed decisions when Ministries are not held accountable for their failure to provide audited accounts?
Ding, lightbulb just went on. NO PAY/STIPENDS/HONORIUMS/ALLOWANCES for Politicians responsible that cannot proviced complete, on-time accountability for public money.
All Senior Civil Servants will be graded according to evaluation criteria which makes their continued employment based upon accountability for funds. Just plain and simple if your evaluation notes that you have shortcomings with tpublic money and good governance – you get a second chance, after that see ya on the streets, but you don't need to apply with my international private sector firm, as your incompetence will cost me millions – and my Board of Directors/Investors won't be too happy about that.
o if we could just wave the magic wand and let primary school children run the show for awhile.
So many reports with so little action. Are the electorate asleep. For God sake what does it take to mobalise a people to some affirmative action. $1 billion is unaccount for and that is just in two ministries and your Deputy Governor and Premier are doing nothing tangible to stem the rot. Get outon the streets with plackards, insist upon government action, invite the media and start claiming your country back for your people before its too late. Wake up Cayman. You love buying t shirts for every cause, well start a t shirt campaign with the slogan "The Cayman people demand action", that should get peoples attention. Walk on Government Buildings, through George Town, take to the airways anything except this deafening silence. Remember the $1 billion is only the tip of an iceberg.
This poster is right on the money (pun intended).
You are so right. What short memories we have too. I found this whilst doing some research on incompetence and reoccurring problems. This was apparently a statement released claiming that 1.5 billion has not been lost. I presume that this was a regular occurrence and this was the one year, 2008, that all expectations were exceeded –
http://www.tax-news.com/news/Response_Issued_To_Cayman_Government_Spending_____31864.html
Hey CNS – noticed that you always mention Mr. McKeeve Bush whenever there is something negative concerning our government – whatever happened to Queen Juliana, the Second Elected Member for Cayman Brac/Little Cayman – surely she deserves some sort of mention when it comes to XXXXX political interference.
God knows what you have done Miss Juliana, so don't try to hide behind the pulpit in Church – your previous actions don't coincide with being a Pastor/Preacher. Please do us all a favor and retire from politics – then you can commit your efforts fulltime to the Watering Place Holiness Church or maybe just stay in Cayman and takeover Red Bay Holiness Church.
May God Bless and guide Mr. McKeeva, Miss Juliana and all their supporters and detractors.
CNS: You must have missed the first story relating to the auditor's reports. See the link:
http://centos6-httpd22-php56-mysql55.installer.magneticone.com/o_belozerov/31115drupal622/politics/2014/10/21/cig-accounts-mess-rolls
OAG is earning his $$$$ in dealing with corrupt/incompetent politicians, senior management civil servants and self-serving and board members. Chief Officers are not needed as Ministers micromanage their portfoliios. You hardly ever hear of a directive being ordered by a Chief Officer – instead you hear from most management level civil servants that the Minister wants this or that done and will specify whom to hire or procure products/services – and bloggers tell me I am wrong, ha, ha.
Why don't we pur Mr. Swarbrick in charge of the Portfolio of Civil Service and also put him in place of Mary Rodrigues in restructuring civil service!!!!
No one in Cabinet has the moral courage to make the hard choices that must be dealt with concerning Civil Service in the long-term – all of them are just worried about votes for next election.
Thankfully the UK has stepped in to monitor the corrupt/incompetent politicians ability to spend, spend and spend (UDP/CDP/PNA/PPM/Independants are all included in this observation).
It is indeed sad that Cayman has regressed to the point that the colour shirt you wear, politically speaking, has a profound effect on one's ability to feel secure about their job or conduct business.
Take a line from the John Birch Society (go ahead and google it) – LESS GOVRERNMENT, MORE RESPONSIBILITY AND WITH GOD'S HELP A BETTER WORLD.
There i was agreeing with everything you said till i got to the final two lines.
Face it already. Caymanians are not ready to self rule. Basic social skills, self respect. and integrity is just not there yet. What more evidence do you need? They have put themselves deep into a debt they can not and will not repay and all this with 50 million dollars comeing in every yearwith nothing to do for it but not screw things up. They have spent(thrown away) millions on trying to look like they are working on the dump, the cruise ship piers, the schools, and just about anything else they say they will do with still nothing to show for it but a never ending fact finding mission that only shows they are not capable of doing the jobs themselves. The financial section of CIG has got to be a criminal enterprise for all the money that has gone missing. The gas card problem has only gotten worse while the cover up has gotten better. The only skill I see is in not getting caught. The UK needs to determine if its is worth all the time and effort to try and save Caymanians from themselves. All the business people from off island, all the tourist, and all the expats will get up and leave Cayman the moment Cayman government tries to stick them with the bill for past expenses soon due. Plan accourdingly. This ship is going down.
Too true..
Unfortunately you have to rely on the UK actually giving a toss…which I dont think they do in the big scheme of things
06:34.You say "All the business people from off island, all the tourist, and all the expats will get up and leave Cayman the moment Cayman government tries to stick them with the bill for past expenses soon due'.I do not believe for one moment that your view is shared by the majority of expats her on island.You also seem happy to state that "This ship is going down." Again I beg to differ .We survived Ivan,and I am sure we will survive this ,inspite of you and your negative views.
14:18, you are deluded, ill informed and clearly do not understand what is going on, but there seems to be quite a few othes like you from a particlaur district.
Ivan and the Cayman Government share one word in common; DISASTER.
There is a truth in what you say but not ALL Caymanians lack integrity. The main culprits are Macs manfiosa whereas this shower are just inept. Its the only explanation i can find right now for the Premier appearing to do nothing, make ant public statements and going as if this is not a crisis. Of course the other explanation could be that once one stone is overturned there would be a domino effect. The Governor is pretty silent too as is the .deputy Governor.
Oh Dear…
Somebody will be spanked with a feather duster…
The main problem is that the Caymans only has a small gene pool for talent. You literally have the equivalent of a small town in any other country providing 'expertise' to manage and govern multi million pound businesses and institutions to run a country and it is never going to function as you would wish without importing experienced talent and that of course is not at all popular. The AG must be shaking his head in dismay at the rank amateurism shown at all levels. The people of Cayman are the ones that suffer as they watch their appointed representatives literally throw 10's of millions down the toilet, year in, year out. A national tragedy.
and the family trees have no branches…
Where is "the Caymans"? Never heard of them.
Yeah. Someone else who is annoyed by this term. If it keeps up I may have to go live on The Virgins.
or The Bahamas!
Not sure if Miss Juliana spent tens of millions of dollars on toilets, but do know that she spent plenty of money to ensure that there were a couple sets of toilet blocks in her neighbourhood. Might not be any running water or toilet paper to use in them, but at least a family member gets paid to "clean" them.
But not picking on just her, am sure that each and every politician who has been in the majority party (especially as Cabinet member) has done their fair share of money wasting.
As a family friend of a retired US Senator- I relay the following comment -" we politicians are not in it for the salary, the real money is made in awarding contracts, gazetting roads and implementing laws favorable to industries that you may be invested in". And this politician has facilities named after him in multiple states – hmmmmn wonder why.
Found this from 2009
Sooo – in the extended effort to get McBush, we may end up with a better Civil Service?
Cool bro!
This is a shameful state of affairs and another example of the inefficiency that we the people are paying big money for in the civil service. I cannot thank the Auditor General enough for his good work in unearthing and exposing all of this. To think that just recently there were cries for reinstatement of the percentage of salaries that had been withdrawn. The nerve, all the while knowing this dirt was there hiding! Every Jack last one should be fired.
Good job CNS on this article it was clear and to the point. Too bad the compass could not do the same, they simply resorted to cut and pasting the sections (word for word) from the Auditor General's report, which explains why the never even placed as an attachment to their article.
Oh well whats new? Do something about it !!!!!!!!!
This is old news, every year for the lasr 15 years and getting worse.
And nooooooooone is being held accountable.
It is time for all these statutory heads to go or made to re-apply for their highly paid jobs. This is public money they are wasting with seemingly little or no accountability.
Disgusting. Here we are told about all these crimes and inefficiencies that have been taking the public's money and nothing is being done about it. It didn't just start last week! One legal action that I recall was a case against a high-ranking official that accomplished nothing when it was decided that taking money using a government credit was O.K. The Cayman Islands government has never shown much leadership!
Bout time
business as usual for the cig civil service…..
time for some more awards franz!…….zzzzzzzzzzzz
Time to start enforceing SOME laws.
I heard they goin start lookin at tinted windows soon. Mebbe.
UK please step in and save Cayman from this wave of incompetent, immoral, and self centered idiots the Caymanians have voted in to lead them all over the cliff of total financial ruin. At the very least its time to work on a plan B. Like it or not the UK will be the savior of the Caymanian people or the ones blamed for the failure.
CNS,the headline of this articleshould mention the timeframe,otherwise we may find that we may unnecessarily tarnish the current Government when in fact the report refers to the Govt of 2012. Also in paragraph 3,first sentence,;the year has been omitted,again causing confusion as to what year is being discussed.
Government……Get out of Business.
The key word ins GOVERN.
Why not just cease all funding to non compliant entities until they can produce the proper accounts? And is this down to incompetence or non-understanding of accounting, or is it deliberate? Are the heads of these organisations qualified to do the work?? And some people will wonder why Caymanians struggle to find jobs..private sector could not employ these people on this track record..
And yet Alden was dismissive of the EY report because he is scared of losing votes.
I am afraid non of our leaders have served their people well. The lack of leadership right now is almost as bad as the corruption of the last. Who do i vote for now?
There was one honest person in government. Once. But they were terminated.
Yes – clean hands and pure heart and everything!
Thanks for acknowledging me – but I am doing just fine in the private sector right now.