The Tribune

NATIONAL Insurance’s first forensic report is yet to be completed, but what is now happening at NIB, observed a concerned Bahamian yesterday, is paving the way for another forensic review at the end of this government’s five-year term.

One of the main complaints against NIB executive director Algernon Cargill —was the manner in which NIB contracts were awarded. For example, Mr Cargill was accused of awarding the electrical contract to a close friend, forgetting, of course, that the electrical contractor won the contract, not on friendship, but the fact that when the job went out to public tender, he won the tender.

Obviously, when the new team arrived, after the change of government in May last year, they wanted to do it their way. Mr Cargill, who supported management in its objection to a certain investment that was felt not to be in the best interest of the Bahamian people’s funds, was a major stumbling block to their plans. He had to be removed.

On November 14 last year, Mr Gregory Moss, NIB’s newly appointed chairman, placed Mr Cargill on administrative leave. This was followed by a “confidential” letter written by Mr Moss to Minister Shane Gibson, containing what Mr Cargill has called “slanderous and reckless non-factual defamatory statements” about him. This so-called confidential letter between chairman and minister was “leaked” to the press, which has resulted in a defamation case now pending in the Supreme Court.

It has been made clear that when the contracts of all persons employed at NIB by the FNM have expired, they will not be renewed. Also the services of all security guards, plumbers, landscaping companies, and general maintenance staff were terminated and replaced by persons of the Minister’s own choosing. None of the current service providers were allowed or even invited to tender. Questions are now being asked why the documented tender policy, approved by the Board of Directors, is no longer being used.

It must be presumed that the replacements had to have ministerial approval because it is claimed that Mr Gibson gave strict instructions to management that no one was to be hired, promoted, transferred or dismissed without his approval. And so, much doubt was expressed when Mr Gibson denied all knowledge of his first cousin being hired as an executive officer in the Drug Plan department. Many are questioning her skills for this position.

NIB has a strict tender policy, which obviously has been abandoned by the new administration. Apparently, today nothing goes out to public tender.

For example, the question has been asked why NIB is using primarily one electrician for all NIB-related electrical work. This was the very question asked of Mr Cargill, and for which he was condemned. The only difference between the two is that all Mr Cargill’s contracts for NIB went to public tender. Apparently today the public tender is a thing of the past. Contracts seem to go to particular friends, family and party supporters.

Questions are also being asked as to why Coastline Construction Company has been terminated from the $8 million JL Centre Project and Ran Mar Construction appointed in its stead – again without going to public tender. And why is Paul Smith/Electro Telecom again the electrical contractor on this job?

Again why is NIB primarily using one engineering company, Island Design/Anthony Farrington. How much money has been paid to this company since May 7? Are there no other qualified engineering companies? And have any of the jobs awarded this company been put out to public tender?

And why, many want to know, was PriceWaterhouseCoopers, one of the largest and most respected accounting firms in the Bahamas, removed although the firm had only one more year to complete its contract. And why was a tender exercise, similar to the one used by NIB’s management during 2007-2012 to appoint PriceWaterhouseCoopers, not used to appoint the new firm?

With government giving notice to the College of the Bahamas and all government departments that expenditure has to be cut because of the country’s serious financial condition, why has NIB hired more than 80 persons and transferred staff from department to department without an apparent plan? It is claimed that these extra persons are not needed. Or is this part of the plan to help fulfil an election promise — 10,000 new jobs under a PLP government?

It appears that what is actually happening is that FNM staff are being removed — or pressured into resigning — to make way for PLP supporters. Of course, what makes it worse for the Bahamian taxpayer is that friendships seem to be more important than qualifications.

This is one area that the Opposition will have to have constantly within its radar. And to give the public an accurate picture of how NIB has been managed over the years, the forensic audit should have started in 2002 and worked up to the present. We are told that many illuminating — and shocking – surprises would have been found along the way.