...credit card fraud - Workers obtain goods, services through illegal means
July 02, 2008
Several Government employees have been using illegal credit cards to conduct business and, in some cases, there is no documentary evidence to indicate whether the goods or services they purchased were for personal or state purposes.
Robert Martin, the deputy financial secretary in the Ministry of Finance, told the Public Accounts Committee (PAC) of Parliament yesterday that the auditor general should recommend a surcharge to penalise the agencies and government ministries that are in breach.
Guidelines for access
Martin said there are clear guidelines which govern the access and use of credit cards. The Ministry of Finance must give approval and the request must go through the permanent secretary in the respective ministry.
The credit-card issue arose when the PAC examined the 2005/06 audited reports of the National Housing Development Corporation (NHDC) and Caribbean Engineering Corporation Limited (CECL) during yesterday's sitting.
The PAC heard that, under the previous administration, a former chairman of the NHDC breached the credit-card guidelines because he was in possession of a government credit card for which no approval was given.
Not entitled
Martin told the PAC that under the rules, the chairman was not entitled to a credit card.
Opposition Member of Parliament Ian Hayles suggested that Martin did not fully know the number of cards in the system.
In response, Martin said the ones that neither he nor the finance ministry was aware of were in fact illegal.
"They have been attained without the approval of the ministry," he said.
PAC Chairman Dr Omar Davies suggested that the permanent secretary in the appropriate ministry and the finance ministry could request the credit-card information through the issuing banks.
Card payments
He also sought to ascertain whether the credit-card bills were paid on time. But Martin said he was not in a position to answer....
Author: Daraine Luton
Source: Jamaica Gleaner
