Public entities guilty of unlawful payments
June 17, 2007
More than half a million dollars on car rental for a Cabinet minister and close to $4 million, or about $140,000 per month, for renting a house for an executive director, who is part owner of the same property, are among a string of unauthorised expenditures red-flagged byAdrian Strachan, auditor general, in his latest report.
The annual report, which provides details from audits conducted on the financial transactions of public entities during the 2005/2006 fiscal year, fingered 22 public entities for making a host of unlawful payments.
Strachan told The Sunday Gleaner that seven of the entities were implicated for breaches that amounted to more than $1 million each.
In a recent interview, Strachan, who is mandated by the Constitution to audit the financial affairs of public entities, called for the prosecution of public officials whose actions result in a loss to the public purse.
And, he insisted, these improper payments should never have occurred.
While executives at some entities are repentant of their transgressions, others have sought to justify their transactions.
Lenworth Fulton, executive director of the Jamaica 4-H Clubs, was livid and lambasted the auditor general for not publicising a letter from the Ministry of Finance that he claims exonerates him.
"I think the auditor general is operating in a very scandalous way ... they should have put the letter on the website," he argued.
Fulton even threatened legal action if the letter, which he received in February after the auditor general's annual report was prepared, is not placed on the website soon.
"If I see it for any longer time I am going to let my lawyer write them. They can't continue to sully my name," he said.
Contravention
In the report, the auditor general, under the caption of improper payment pointed out that "the necessary Ministry of Finance's approval was not seen for the payment of a rental allowance to a senior officer (Fulton) amounting to $3,919,036 for the period September 1, 2002, to December 31, 2005".
"This contravened Section 20 of the Public Bodies Management and Accountability Act. Up to the time of this report, there was no indication that the Ministry of Agriculture's directive that this improper payment be recovered had been complied with," the reportstated further.
On the one hand, Fulton is convinced that the letter from the Finance and Planning Ministry clears him from repaying the amount. On the other hand, Strachan does not think the letter will suffice.
"We are not satisfied that the matter was properly dealt with so we don't consider it a matter that has been resolved," the auditor general said.
Evidence of authorisation
He added: "In any case, we would not consider that letter as appropriate evidence of authorisation since what is required under the Government's rules is the prior written approval of the Ministry of Finance. That is why we are totally dissatisfied."
Strachan explained that the payments began after then chairman of the 4-H Clubs wrote a letter to Fulton advising of payments he was entitled to that were not mentioned in his contract. After it was highlighted by the Auditor General, the matter went to the Ministry of Agriculture, which ruled that the money should be recovered because it had been improperly paid.
Strachan said that the matter was subsequently referred to the Finance and Planning Ministry which "took the position that it was part and parcel of the package and treated it as an addendum to the initial agreement and in their view, (there is) no need for him to repay the amount".
By Sunday Gleaner calculations, Fulton received nearly $140,000 a month over the 28 months. However, in addition to arguing that he only received a little over $97,000 per month (or approximately $2.7 million) during the period in question, Fulton said the money was really paid to him as an incentive for him to raise some much-needed funds for the 4-H Clubs.
"I don't know how they come up with that (figure), but I am telling you that the 4-H Clubs records will reflect that," he said. "We (the board) termed it rental allowance, but it was really an incentive to raise a minimum of $30 million over a three-year period, because that allowance is really over a three-year period," explained Fulton....
Author: Tyrone Reid
Source: Jamaica Gleaner
