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More audits for post office and hurricane fund

By AVA TURNQUEST

Tribune Chief Reporter

aturnquest@tribunemedia.net

FORENSIC and internal audits ordered at government ministries and departments will continue unabated with no regard to how matters are “spun by the opposition,” Press Secretary Anthony “Ace” Newbold said yesterday.

The Post Office Savings Bank and the Hurricane Relief Fund have been added to the list of government entities slated for forensic audit, according to Mr Newbold, who defended the government’s track as the mandate given by the Bahamian electorate.

“Prime Minister Minnis has said accountability and transparency are the two watch words of his administration,” said Mr Newbold. “No matter how it’s spun by the opposition audits are going to be conducted across the spectrum of government. That is the only sensible way to get a handle on the state of wherever you are.”

Mr Newbold said: “It is going to happen and there’s no getting around it. This is in keeping with the prime minister’s statement about the need to know what’s going on in the various ministries.”

In his first press briefing at the Office of the Prime Minister, Mr Newbold responded to opposition calls of victimisation in the wake of steps taken to prepare for an audit at the National Insurance Board, a move that saw several senior officials forced to take a vacation. Three of them were given letters on Monday informing them to take leave immediately, while another official who was out of office will be served with the notice upon his return. 

“The opposition will say that but the audits must continue,” Mr Newbold said.

“It’s not as if Prime Minister Minnis came to office and all of a sudden he sprung this on the Bahamian people . . . The Bahamian people have been talking about National Insurance for years, along with everything else.”

Mr Newbold said: “The Bahamian people said ‘we don’t like what’s going on down there’ and so they decided to vote for Prime Minister Minnis and his team and he has to assure the Bahamian people that all is well. The only way he can do that is to conduct an audit, sometimes to get to where you need to get to, you need to move some people around, it’s as simple as that.”

At the Nassau Insurance Board (NIB), Cecile Williams-Bethel, senior deputy director of operations; Theresa Burrows, NIB senior deputy director of business support and administration and Dr Baldwin Carey were asked to take vacation leave on Monday.

Raymond Wells, deputy director of IT, will also be put on vacation leave when he returns to work, The Tribune was told.

Asked whether it was feared that senior officials would hamper the investigation, Mr Newbold said: “The government wants to make sure that none of it happens. The government believes the best way to conduct these audits, it is more likely that they will be able to get to what they need to get to if they do not have to deal with these particular people, whoever they are.”

It is unclear if the NIB audit will be an internal probe or a forensic one, however it was suggested it may become a forensic investigation. 

The Post Office Bank and Hurricane Fund will join the Bank of the Bahamas, Bahamas Agriculture and Marine Science Institute, and the Urban Renewal programme; all of which have been slated for external review but with no price tag disclosed.

Mr Newbold could not confirm yesterday whether a firm has been contracted, or how much money has been allocated to cover the expense.

He noted, however, that the firm Ernst & Young made a presentation to Cabinet to conduct audits at government agencies during its May 23 sitting.

The forensic audit undertaken by Grant Thornton Bahamas at the National Insurance Board in 2013 reportedly cost taxpayers $861,000.

“I can’t say that it will happen,” Mr Newbold said when asked whether dismissals were to be expected in the spate of audits. “But it’s certainly a possibility we don’t know what the audits are going to reveal so we don’t prejudge them.

 “People have nothing to fear if they do their jobs,” he added, “you do your job, you have a job.”

Comments

birdiestrachan 6 years, 11 months ago

Newbold you just go and audit every department. and see what you will find. being as there is no visionary ideas at least those who voted for your party, may feel as if you are doing something. After the audits. then what,? A ACE in the hole? maybe.

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242in404 6 years, 11 months ago

The audits are smart and necessary. How can a new regime come in and know how to prioritize or what to expect if they don't. Revealing corruption is the cherry on top...

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Well_mudda_take_sic 6 years, 11 months ago

“Prime Minister Minnis has said accountability and transparency are the two watch words of his administration,” said Mr Newbold. “No matter how it’s spun by the opposition audits are going to be conducted across the spectrum of government. That is the only sensible way to get a handle on the state of wherever you are.”

Where's the transparency and accountability when Minnis refuses to tell the public at large who has been engaged to perform each of these ongoing 'forensic audits' and at what cost?! When Hubert Ingraham became PM in 1992, after 25 years of successive PLP governments, he immediately ordered his then Minister of State for Finance, Bill Allen, to arrange for external audits to be done (by a local accounting firm) of the Public Treasury's accounts for the last two fiscal years of the Pindling administration. Ruth Millar was the Permanent Secretary in the Ministry of Finance at the time these two audits were conducted. The audits back then cost the taxpayers about $1.5 million, equivalent to about $5 million in today's dollars. Although the auditors ended up being unable to give an opinion on the the Public Treasury's accounts for numerous reasons, the voluminous reports of their findings arising from the audits (quite literally hundreds and hundreds of pages long) revealed many things that would have shocked and horrified the public, yet these reports never saw the light of day. And not a single person ended up being prosecuted. It seems history is repeating itself, but we all know (deep down) that Minnis is no Ingraham......he's something much, much worse as we will all be learning soon enough!

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Wideawake 6 years, 11 months ago

It is generally accepted that members of the last government misappropriated funds; the audits will reveal who stole what. The thieves must be prosecuted and the monies stolen must be repaid. If this process works effectively then the returned funds, and fines, should more than pay for the audits! In addition prosecution of those that stole will reduce the likelihood of rampant government corruption continuing.

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TalRussell 6 years, 11 months ago

Comrades! Minister Finance 'KP' grabbing $30 - $100 millions dollars in loans just to cover costs to conduct audits...... So many audits - we going need an audit to audit the auditors?
Question - how could PLP's steal $100 million, if the public treasury was broke?
I sure hope 'KP' - tendered-out (transparency) all these bundles millions dollars to conduct so many audits?
Wouldn't it have been far more productive to take the $100 million audits money - to construct 4,000 - 2 Bedroom low-cost Homes for 4,000 financially challenged citizens? Funny how an accountant thinks audits is just what citizens need in their cooking pots?

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