By NICO SCAVELLA
Tribune Staff Reporter
nscavella@tribunemedia.net
CONTRACTS for the repair of small homes in New Providence worth more than $10,000 were issued to contractors without proof of ministerial approval, an audit into the Urban Renewal Small Home Repairs programme has revealed.
The report, by Auditor General Terrence Bastian, revealed that contracts for small home repairs were issued to contractors without an approval letter from Works and Urban Development Minister Philip “Brave” Davis.
The report says officials were not able to ascertain if there was a financial ceiling in place for small home repairs.
Additionally, the audit revealed that close to $90,000 was paid to a consulting group to conduct individual home inspections prior to the completion of repairs without confirmation of how many homes were actually inspected, and without knowledge of whether or not the consultant’s seal was on each certificate of completion.
The audit also revealed that the filing system in place for documenting the aforementioned transactions was “not adequately maintained” and that a proper inventory system was “not fully in place or maintained.”
“While examining contracts for small home repairs valued over $10,000, we noted that the approval letter from the minister of works and urban development was not placed on the individual files neither were we able to ascertain if there was a ceiling for home repairs,” the report says. “In an effort to promote accountability, transparency and to maintain the audit trail, we recommend that the approval letter be placed on each homeowner’s files. It is further recommended that a ceiling be established for small home repairs.”
In the list of contracts issued provided in the report, some homeowners had utilised the services of two contractors.
“We seek an explanation as to why some homeowners had a second estimate and repairs done to their homes, what factors contributed to this and the authorisations for these repairs,” the report says, adding: “It is further recommended that more stringent controls be established in disbursing and the management of funds for small home repairs.”
The report went on to say that one company entered into an agreement with the Urban Renewal Commission (URC) on October 21, 2013 to provide preparation of a report on the existing condition on each housing unit giving details of each defect found and the recommended remedy of each defect; the preparation of a budgetary estimate to include the anticipated cost to remedy each defect; to carry out a site inspection prior to completion and to carry out a final inspection on completion of works to “remedy each identified defect and certify that they have been completed to reasonable standard as established by the URC.”
The report says this company received $300 for each home inspection. The total paid to the company for the period October 2013 to March 2014 was $88,800.
However, the report said despite the amount paid indicating payment for the “signing off on 296 certificates of completion”, officials were unable to determine how many homes the company actually inspected, the details of inspections and defects noted, and the estimate of repairs and renovations prepared.
Officials were also unable to confirm whether before and after photos were taken of each home inspected and whether the company’s seal was on each certificate of completion, according to the report.
The report further noted that a representative from Accounting Outscore Services (AOS), an independent accounting firm, queried in an email to the permanent secretary in the Ministry of Works dated June 26, 2014 a payment request from $5,000, as the company’s seal was “not on all the certificates of completion.”
“The payment dispute remains unresolved up to the time of the exit conference; and the commission did not terminate the contract with (the company) since acquiring the services of a qualified surveyor on staff,” the report says. “Having assessed the deficiencies in the internal controls of small home repairs and in the absence of support documentation we were unable to determine whether services rendered by (the company) were fully performed. Based on the incomplete homes, inferior work done and deficiencies noted we were not satisfied whether value for money was achieved on the . . .contract.”
The report adds: “We recommend that the commission provide an account of the services performed by (this company) detailing the scope of works executed, homes inspected and proof of reports prepared for audit scrutiny.”
The report also notes that the filing system in place for the Small Homes Repair programme was “not adequately maintained,” and that a proper inventory system was not fully in place or maintained. However, the report said that efforts were being made to address this deficiency.
“Small homes repairs were particularly a challenging area in Urban Renewal 2.0 programme,” the report concludes. “We were not satisfied with the due diligence, level of transparency and accountability as it revealed too many ‘gaps’ that were critical to the process.
“It is therefore recommended in light of the deficiencies noted in the small home repairs project that the programme be restructured to permit more independence within the commission for programme execution.”
According to the report, phase one of the SHR commenced in 2013. A total of 312 homes were repaired during this phase with an overall cost of $3,247,014.61.
The audit covers the period of July 1, 2012 to September 30, 2014. The auditor general surveyed 75 homes for the audit.
Comments
Greentea 8 years, 11 months ago
A disgrace. Corruption. Corruption. Corruption. Bahamians stealing from themselves and rather than suss out the corruption, most folks complain and then try to get at the government's bubby too. That breast soon dry up.
asiseeit 8 years, 11 months ago
Somebody needs to go to jail, this is THEFT! Also whoever is throwing OUR money around like it grows at BAMSI needs to be fired TODAY! I know you corrupt government types do not have to work for your ill gotten gains,but the common man does. GET IT STRAIGHT, ENOUGH STEALING OUR MONEY!
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