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Water and Sewerage’s CFO questioned over contracted companies ownership

By PAVEL BAILEY

Tribune Staff Reporter

pbailey@tribunemedia.net

THE Chief Financial Officer of the Water and Sewage Corporation (WSC) testified yesterday that Adrian Gibson was not named the owner of three companies under scrutiny for the contracts they received during his time as executive chairman of the company.

Patrice Munroe, who heads the corporation’s financial unit, testified during the bribery and fraud trial of Mr Gibson and former WSC general manager Elwood Donaldson, Jr, Rashae Gibson, Joan Knowles, Peaches Farquharson and Jerome Missick.

Ms Munroe said that police came to WSC headquarters with a warrant on April 22, 2022, and requested documents concerning proof of payments to several vendors. He said officials surrendered receipts and wired cheques from those vendors.

Acting Director of Public Prosecutions Cordell Miller Frazer, who is prosecuting the case, showed Ms Munroe a list of payments made by WSC with her signature.

Ms Munroe confirmed that Elite Maintenance got a total of $701,468.36 for landscaping services and water tank painting contracts.

She said that Bahamas Restoration received $578,064.61 for landscaping and water tank contracts. She also said Adam’s Landscaping and General Maintenance received $690,625.34 for similar contracts.

During questioning from Mrs Frazer, Ms Munroe confirmed that while executive members of WSC are responsible for the day-to-day management of the company, they report to the chairman.

When questioned by Damian Gomez, KC, who represents Mr Gibson, Ms Munroe said she believed Mr Gibson received $5,000 per month as part of his salary as executive chairman of WSC. She believes that Mr Gibson also received an allowance of around $1,000 and that he was entitled to per diems, bringing his monthly payments to around $7,000.

She could not say if she saw a cheque with Mr Gibson’s signature. However, she explained that payments would have been shown through bank statements. She said she only requested to see a cheque if there was an issue with the bank.

Ms Munroe agreed that she keeps financial records and is responsible for payments at WSC.

She clarified to Mr Gomez that she did not have the actual contracts, but has evidence of payments.

Ms Munroe also explained that recently, contracts over $250,000 would be copied in emails from the minister and sent for Cabinet approval. This policy was enacted under the current general manager of WSC.

She said that VBO serves as an external auditor for WSC and that only their 2017–2018 report is complete. The 2018–2019 audit is in the draft phase, while the 2019 – 2020 and 2020 – 2021 audits are still in progress.

Ms Munroe confirmed that a vendor would only be paid after an inspector confirmed that the work was being done.

When the three aforementioned vendors registered on WSC’s online portal, Ms Munroe could not recall Mr Gibson being identified as the owner of any of the companies. However, she could not say if a company’s stakeholders must be disclosed. She said the business licences and proof of tax payments should be submitted. She said the portal system enhanced cheques and balances as payments are only made to registered vendors.

She agreed with Mr Gomez that the WSC board approved payments for five water tank contracts.

Although Ms Munroe said she could not recall Alexandria Mackey, Mr Gibson’s ex-fiancée, being a contact person for any of those companies, she vaguely recalls a correspondence that Ms Mackey is no longer a contact person for Elite Maintenance.

She also could not say when Elite Maintenance became a vendor, but that the first payment was in 2018.

While she could not say who else was on Mr Gibson’s bank accounts, she said that his salary was sent to Scotiabank and his allowance to RBC.

After it was explained that a change order was necessary to approve funds if a project went over budget, Ms Munroe could not say if she saw such a form for a contract for painting WSC’s headquarters.

Ms Munroe further clarified to Mrs Frazer that the general manager, deputy general manager and herself must sign off on a change order.

When Mrs Frazer said that the five water tank contracts had an initial budget of around $700,000 but that the final cost was $1,435,225.67, Ms Munroe said she did not receive a change order form for those tanks.

Mr Gomez, KC, Murrio Ducille, KC, Bryan Bastian, Ryan Eve, Mr Raphael Moxey, Christina Galanos, Ian Cargill and Donald Saunders represent the defendants.

Mrs Frazier, Cashena Thompson, Karine MacVean and Rashied Edgecombe are the Crown’s prosecutors.

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