Consular staff abused finances

As of Friday, October 23, 2020

Auditor General Terrence Bastian.

By KHRISNA RUSSELL

Tribune Chief Reporter

krussell@tribunemedia.net

THE Auditor General has highlighted abuse of educational allowance in the amount of $167,000 at the Consulate General of the Bahamas’ Miami office.

In a report tabled in the House of Assembly, Auditor General Terrence Bastian noted that an officer stationed at the office received allowance for a child’s educational expenses, but that child did not go to a school that required tuition fees.

Further, cheques for tuition were not made out to the education institutions, but rather printed in the officers’ names.

Seconded employees with children are given an educational allowance of $22,000 per child annually.

“There were two officers in the Miami consulate that received this allowance, Officer A has three children and Officer B has one child,” the report for the period July 1, 2016 to June 30, 2018 noted.

“Upon requesting documentary evidence on the payment of these allowances, neither the Miami Consulate, nor the Ministry of Foreign Affairs could produce evidence to support enrollment and attendance of these officers’ children.

“Further we observed that one of Officer A’s children did not attend private high school but a public high school for which tuition is not required.

“It was also observed that allowance cheques in the amount of $167,445 were written in the officers’ names rather than the educational institution. This did not appear to be in accordance with government procedures.”

Officer A received a total of $137,800, while Officer B was given $29,645 for educational allowance.

The auditor general recommended that the Ministry of Foreign Affairs provide documentation to support the expenditure.

In addition, officials at the Miami office were found to be using debit cards improperly.

There were a number of purchases made by debit cardholders that had no supporting documentation, the report said.

“There were no quotes, requisitions, purchase orders and invoices evidenced for these transactions, which is not in accordance with Public Treasury procedures.

“We also noted that the debit cards did not have assigned limits and four cardholders spent $156,290 during the two fiscal periods under audit.”

A further breakdown into the spending found that one officer spent $91,857.10 over the two fiscal periods. Another officer spent $32,157.81.

Officer three spent $26,408.43, while officer four spent $5,867.30.

The government’s chief auditor also found that there had been haphazard deposits and cash kept by a supervisor.

During the examination of the office’s accounting records, Mr Bastian said cash collected was inconsistently deposited into the revenue bank account.

“Upon review of the bank deposit slips, we noted that cash amounting to $17,215 and $13,890 was allowed to accumulate in the two deposit examples cited in this finding. This appeared to be a common occurrence at the Miami Consulate.

“Upon inquiry as to the safeguarding of cash, it was revealed that the cash held was being kept in the desk drawer of the revenue supervisor.

“This supervisor was responsible for safeguarding the cash at the end of the day, checking the receiving officers’ daily receipts, writing up the bank deposit slips, depositing the case and posting the revenue transactions to the general ledger.

“One person performing all of these functions presents a significant segregation of duties issue in the revenue process.”

In some instances, cash was being held at the office for 21 days, 17 days and 16 days. The largest holding period was 28 days.

Mr Bastian recommended that management implement strong controls around the safeguarding of the government’s cash.

He said: “Whenever an employee has custody of cash and cash equivalents there is a risk of loss through employee errors and/or misappropriation of the asset if the appropriate monitoring is not occurring.”

He said policies and procedures around the handling of assets should be documented and implemented among other improvements.

An official at the consulate office could not be reached up to press time. However, Minister of Foreign Affairs Darren Henfield said the officers in question are no longer employed at the consulate.

observer2 3 years, 6 months ago

The US$600 million they just borrowed form foreigners at 9% when Bahamians are only getting 0% at the bank will easily cover these expenses.

We are in a state of emergency. No time to investigate hard working government employees. We are shut down to save lives.

Every year I pay my annual post office box fee for 40 years and the money is put into a legal sized light brown envelope and they never have any change for me. So I jokingly tell them to buy lunch with the change. Now I don't even get international mail since the pandemic started. OK, I better stop complaining...or else.

ThisIsOurs 3 years, 6 months ago

Yes what are you complaining for? The cashier could have been forced to put the money in her bra. How the auditor general gonna count dat? And what if someone bring alot of 1's and pennies? They still legal tender. I say the acquisition and use of the brown paper envelope is an example of the kind of innovative thinking we need right now. We've never done this before you know! Has anybody ever collected money during a pandemic on Oct-24-2020? I thought not. We're all learning as we go.

observer2 3 years, 6 months ago

ThisIsOurs, I think the brown envelope to collect cash is much more effective than have a cash register at each post office.

Why have basic accounting internal controls like a cash register which is balanced out and closed everyday and all cash receipts deposited on a daily basis at the bank.

Its much easier just to collect the cash, don't give change and then use the cash for expenses. This is much easier because now you don't need to go to the bank.

Ohh, also, they don't accept checks unless they are certified and ohh, they don't accept credit or debit cards either.

CASH ONLY PLEASE.

This is a pandemic. NO MAIL DELIEVERED. EVERYONE GETS TO KEEP THEIR JOBS.

ThisIsOurs 3 years, 6 months ago

This is a great plan and if noone is counting everything always balances! This brown paper envelope is truly the innovation of the century

OMG 3 years, 6 months ago

Are you really suggesting that what is outright theft from the taxpayer should be overlooked. Dismissal is insufficient they should be charged and brought to court. What is it when these persons are seemingly dismissed, without prosecution. As for the post office its an outright scandal. I have had periodicals never reach me but verified by the publishers as reaching Nassau, I put 7 Christmas cards in one large brown envelope to be delivered to a family island and then distributed by the named individual. Never arrived. What the hell goes on and this was before covid >

observer2 3 years, 6 months ago

OMG, sorry, I was being cynical. I'm not suggesting that "outright theft from the tax payer should be overlooked". But theft is a very strong accusation and has to be proven in a court of law and someone will need to prosecute. This should take about 10 years. But with the pandemic, Covid 19 protocols and emergency orders in place the brown envelope is demonstrating that employees are thinking out of the box!

tribanon 3 years, 6 months ago

Love it !

I used to think I was quite the cynic, but you've got me beat by a long shot.

OMG 3 years, 6 months ago

This non accounting goes on in every department but seemingly nobody is held to account because of the "who you know" factor.

The_Oracle 3 years, 6 months ago

They just can't help themselves. (Pun intended) The perception, and very likely the reality, is that those at the top do it, so they all might as well do it. Has there ever been a successful prosecution involving civil service fraud? Prosecution of an elected official? Aught to be dozens. And we wonder why the country is in the condition it is in.

yeahyasee 3 years, 6 months ago

An official at the consulate office could not be reached up to press time. However, Minister of Foreign Affairs Darren Henfield said the officers in question are no longer employed at the consulate.

^^Thats' about the last you'll hear of this story, they're not working there no more so it won't happen again yah see LOL

tribanon 3 years, 6 months ago

Notice how the very corrupt Darren Henfield carefully points out that the alleged thieves are no longer employed at the consulate without saying whether they are still employed by government eslewhere. And notice too how the corrupt Darren Henfield makes no mention of whether the ministry of foreign affairs has referred the matters uncovered by the auditor general to the police for a full scale investigation.

Islandchild 3 years, 6 months ago

You obviously just talking garbage and no NOTHING about how the government actually runs. If you had any knowledge of anything, you would realize that this audit took place in 2016, which means it was during the governing period of the PLP government. Now go call them corrupt

tribanon 3 years, 6 months ago

As the above article discloses, the auditor-general's report covers the period through to June 30, 2018. Minnis was elected PM in early May 2017 and Darren Henfield was appointed by Minnis as minister of foreign affairs shortly thereafter. And Henfield is indeed most corrupt. Now put all of that in your pipe and smoke it!

Hoda 3 years, 6 months ago

You should check when the current govt made appointments to foreign offices. They didnt send foreign officers until end of 2018 or 2019... So you put one + two = together

TalRussell 3 years, 6 months ago

Some spooky allegations of ugly dishonesty no longer can be kept secret by colony's AG, Royal Constabulary, whilst conducted under what appears have been under the virtual observation their Consulate General bosses...all taken place whilst the Homeless, Coconut Water Sellers, and individuals were being arrested, fined, imprisoned, and handed criminal records for being in possession of small quantity weed for personal use... the stationed abroad culprits holding jobs of trust is alleged to have helped themselves monies ontop and above their payscales.
Shakehead once for Yeah time seriously consider returning under the English flag, Twice for Not?

tribanon 3 years, 6 months ago

The matters described above are but the tip of the iceberg. Public (taxpayer) funds totalling huge amounts are literally being stolen day-in-and-day-out throughout just about every government controlled agency, department, corporation and special purpose vehicle. And Minnis and every single one of his cabinet ministers know it, with some of them even being 'in on it' by way of their own devilishly devised elaborate schemes designed to defraud honest and hard working taxpayers. This is where a great deal of our VAT payments has gone and why our national debt has continued to soar under the Minnis-led administration, even before Covid-19, notwithstanding the 60% increase in the VAT rate, from 7.5% to 12%.

Minnis and his cabinet ministers, KP Turnquest in particular, are content for our country to simply borrow more no matter the interest cost rather than address the theft problem that is so pervasive in most areas of the public sector. Experts on public sector fraud within the IMF have long ago estimated that outright theft by senior officials and other employees in our government controlled agencies, departments, corporations (e.g. BOB, BPL, Bahamasair, etc.) and related SPVs, may be costing our country as much as $300 million ($300,000,000) annually.

Small wonder KP Turnquest is already modelling yet another increase in VAT among other very harsh and draconian increases in other taxes and fees, many of which will be targeted at the those perceived to have money or property for the taking.

TigerB 3 years, 6 months ago

I love Mr. Bastian, he doesn't play politics, he simply does his job.

TalRussell 3 years, 6 months ago

My Comrade TigerB, the Central Redcoats Authorities CRA are Shakin' their heads Twice at you for Not?
Imagine the scopes as to the kinds of ugly of the what AG Terrance (not be confused that other, jail the Homeless and Coconut Water Sellers, bottomfeeder of an AG), could've uncovered, if only CRA had funded the monies and staffing run fast conduct real Auditor General's investigative operations?

hrysippus 3 years, 6 months ago

I think we are very fortunate to have Mr. Terrance Bastian as our Auditor General; he is the only one in the past 47 years to actually do the work that defines the position

TalRussell 3 years, 6 months ago

Let's be frank good bookkeeping expectations under a regime so committed full transparency had to have had in place such minimum accountancy safeguards so as to guard against the potential be corrupt-minded.
Seconded employees with children be submitting claim an educational allowance of $22,000 per child annually. would've expected such submissions big sums monies **had have been reviewed, approved, and signed-off on - prior submission to PopoulacesPurse, by the resident Consulate General.
Shakehead once for Yeah tell us what hell, exactly is a Seconded employee, Twice for Not?

Islandchild 3 years, 6 months ago

Again..... another person who has so much to say and know nothing about how government actually works. The audit took place in 2016, which means that the accounts were being reviewed during the period of the PLP government. Hmmm... now what do you have to say?!

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