Port boss faces list of mismanagement accusations
George Town cargo port, Grand Cayman
(CNS): A damning report released by the auditor general has revealed a significant list of allegations against the director of the Port Authority of the Cayman Islands (PACI), ranging from mismanagement to potential fraud and corruption. Clement Reid is accused of breaching recruitment practices, spending over $130,000 decorating the port offices without approval, allowing staff to go on paid leave to work for the former opposition leader and of turning a blind eye to the theft of boat engines, among other revelations.
The findings are set out in an spin-off audit from the original financial review triggered by a catalog of accusations over what took place at PACI during 2016 and 2017. The redacted report was released by the Office of the Auditor General on Friday evening following a number of freedom of information requests fuelled by rumours over the last few months about the allegations of significant irregularities at the authority.
Despite emails that had been sent by PACI Board Director Errol Bush to quash internal rumours about the issues, saying that things were not serious, the report outlines a list of issues that expose the mismanagement of public funds and raise a number of questions about potential abuse of power and possible corruption.
The numerous accusations relating to the mismanagement of the recruitment process, including bias and favouritism, inflated salaries, excessive and unapproved spending on renovating offices, including the purchase of rugs and poufs, as well as the theft of boat engines, the release of a salvaged vessel to disputed owners and allowing a member of staff, on several occasions, to take more than 60 days paid leave to travel with McKeeva Bush.
The report outlines serious infractions regarding recruitment, where senior staff were appointed or promoted without jobs being advertised or the involvement of the human resources manager. The report found that regulations were not followed when it came to background checks, and medical and clearance certificates. Salaries were agreed with those given the jobs that were well above the advertised pay or exceeded the stated bands. In more than half a dozen cases involving recruitment and promotion decisions the laws were broken and internal codes breached, the audit report said.
The auditor general also outlined the granting of special paid leave to an unidentified member of staff who was given permission to go overseas on six separate trips between March 2016 and March 2017, for a total of 63 days, to assist McKeeva Bush, who was the opposition leader at the time, as his driver. The auditor found this contravened the authority’s own rules, as there is no provision to allow port staff to take paid leave to assist MLAs.
The report also reveals a jaw-dropping expenditure on soft furnishings at the port offices, which, according to the OAG, were not approved by the port board, as well as other major renovations at the port HQ. Almost CI$136,000 was spent on these upgrades, but the auditor said that there was no evidence of an outline business case, a tendering process or approval from the board, or that the expenditure was ever budgeted.
In a spending scandal akin to that plaguing some of the Trump administration’s Cabinet members, it appears the port director spent almost CI$31,000 on rugs, vases, poufs, lounge chairs and dining tables. The remaining cash was spent on upgrades to various offices and office furniture.
The audit review further suggests that the port management turned a blind eye to what was essentially the theft by some port staff of four boat engines worth around $6,000 that were taken from Harbour House Marine, where they were being stored awaiting disposal. The OAG found no official approval or authorisation for staff to have taken the engines but no action was taken by management about what the auditor general suggested was theft.
The audit also questioned the process surrounding a wrecked vessel that was released to a port employee even though a member of the public has also claimed ownership. Two separate but conflicting reports were made to authority from customs and the police over who had found the boat and, in the absence of an owner coming forward, who would have a right to claim it. The port director was accused of not following the correct procedure, bypassing the official channels for dealing with wrecks and signing it off to a person whose claim was in question.
The redacted report contains correspondence and various documentation to support the findings during the specialist audit but there is no management report or response from either the port director or the board of directors and its chair.
It is understood that the OAG had referred the issues to the Anti-Corruption Commission but sources told CNS that no action was taken by that body because the issues were dealt with under internal procedures, though the outcome of that has not been revealed.
CNS also understands that a response to the report does exist but was given directly to the authority’s board. We have requested that documentation and have also contacted the port director for comment and we are awaiting a response to both.
The list of PACI Board of Directors on the PACI website is out of date. The current membership is below:
| Errol Bush | Chairman |
| Arek Joseph | Deputy Chairman |
| Robert Foster | Member |
| Capt. Ashton Bodden | Member |
| Jacqueline Scott-Rankine | Member |
| Richard Parchment | Member |
| Ken Thompson | Member |
| Ministry of Finance | Ex-officio Representative |
| HM Customs | Ex-officio Representative |
| Ministry of DA, Tourism & Transport | Ex-officio Representative |
Category: Government oversight, Politics
all birds of a feather i’m afraid. Bring back Paul as he’s not looking so bad now huh?
This is the same board that tried very hard to find fault in Paul, could not,still didn’t not renew Paul’s contract. But has watched, been aware, and allowed this to happen ?? Old boys club.
My point exactly, who let the current director run astray with the unnecessary spending and lack of proper procedures? Obviously he may not have acted alone
Why has he not been put on required leave like all the others??
Banana Republic incompetence again, Caymanian work Culture .
This is not the CAYMANIAN work ethic. I find your comment highly offensive and suggest you emigrate to a fairy land where there is no mismanagement or other negative behavior by those who live there.
This is such an ignorant and dangerous comment to make. You forget that countries like the US and the UK struggle with the same issue of finding persons to work in their own countries and they all prefer to hire immigrants not necessarily always for the right reasons. Its not a DNA issue. Your comments though reek of ignorance which is so dangerous for all of us. Anyone here on a permit has been sifted out from many in the country they come from. No one pays work permit fees for someone who doesn’t qualify and fits the bill and if you don’t perform you will be terminated and sent home. Makes perfect sense. Therefore to suggest you are better than Caymanians is ludicrous. You should know better!
I have read the report and I am still wondering why is he still in the job! Board do your job and remove him before he plays stupid again. Shocking examples of nepotism and favoritism. He goes against all of his company polices and he is the head of the Department. Its shameful!
Ooh…this is good….get some popcorn…guessing those new cranes wont have cost as much as was spent….then on to the port redevelopment….more popcorn…interesting summer ahead by the water!
These people need a course in ethics. Shameful to the core.
Same director and board who push for cruise ship piers? The things that make’s one say hmmm ????
Oh my lord is this man for real? He was only appointed Port Director in 2015 and it’s just the start of 2018 and he has himself caught up in scandal already? SMH Why do these people do these things when they get in a position of power? Do they not like having clean names? And he is further discrediting himself by not even taking responsibility for this damning report! Clement man up and take ya licks!
Nothing will happen. Lodgetastic.
if this is not mismanagement I don’t know what is and he is still on the job. Come on guys put him on leave why you investigate it! Like NRA boss.
We will prosecute Clement Reid when we extradite Sue Nicholson from Europe for stealing all that money from the Pines retirement home. just a quick reminder to some who’s selective minds seems to be in high gear. If you think that’s bad check out her new job She landed overseas.
Ahh. So if an expat does something bad and gets away, a Caymanian gets a free pass? Here’s an idea. Why don’t you press for people to be prosecuted irrespective of their national origin.
All the money she stole was repaid in full, can you name a single Caymanian that has done this. Caymanians simply cannot accept any Caymanian doing wrong, that’s why there is never any accountability. As with all these chronic disasters nobody will be sacked least of all those responsible.
She still committed a crime and fled the jurisdiction failing to face judgement. Having someone else pay back the money after getting caught back is not good enough.
Yes and whilst your waiting on my reply about Caymanians. Could please find out just how our Caymanian Mr Reid derive any benefited from this alleged corruption. In regards to getting your spouse to pay back after you are caught WOW! thats makes OK ?? I going let my spouse steal from her employer and i will pay back it, when they uncover the theft Just Cool! What a self righteous ass you are eh. You bunch of Anti Caymanian @$$#ipes need to go back home since it is so really bad here.
She is a dishonest crook! Her husband repaid the money and had to have known about her criminal actions. If you have done nothing wrong why are repaying stolen monies from the Pines?
They should both have their Caymanian status revoked immediately.
If she comes back to Cayman she should be arrested at the airport.
Remember the rotary 4 way test.
I agree … Her husband paid back the money (no excuse for still not going after her) ; this guy Reid said he needed a new patio door and a poof for CI$ 130,000.00 …. I bet he won’t pay it back.
The old boys club still alive and thriving
The old boys Club is alive and kicking in Cayman. Never a truer word. Look how they changed the law on the old breathalyzer machine to only require one breath test when in fact this machine requires two breath tests for reliable results because the machines never functioned correctly? NOW they’ve thrown out these old machines and replaced them with all new machines and not a word about it, not a word….this needs to be followed up CNS
It is my opinion from the information that I have available that there is a potential case of corruption that needs to be investigated and if anyone is found guilty the should be held accountable to the fullest extent possible.
Reading the article in the Compass on this matter I am totally amazed. The PD takes no responsibility for his action but rather blames others. The ship Port Authority ran aground while the PD was on the bridge. Guess the Chairman thought him a thing or two about spinning the facts.
Explain this to me. The private sector complains about no accountability in Government. But whose job is it to hold the Director of the Port accountable. Private sector board members.
Maybe it’s time to rethink who these directors are accountable to. Clearly the present system is not working.
Or maybe it’s time to get professional board members and stop appointing political cronies. Oh wait the public authorities law requires that.
How about privatizing the Port Authority and putting the job out to tender?
Could not be any more of a total f%#k-up and would more than likely cost the public purse a great deal less, not to mention the management would be accountable for the first time in history!
I am surprised that the board chairman allowed the driver thing with all the bad blood between him and the Speaker.
driver why? Had the Bush lost his licence?
People bitched about Tempura and possibly rightly so. However when stuff like this comes up, you can kind of understand the impression that corruption is rife.
You should be careful making statements like this which some consider treasonous
Treasonous because it’s the truth?
Article above mentions “It is understood that the OAG had referred the issues to the Anti-Corruption Commission but sources told CNS that no action was taken by that body because the issues were dealt with under internal procedures, though the outcome of that has not been revealed.”
So the Anti Corruption Commission wouldn’t take any action on this because the port board or its members were allowed to carry out the investigation even though the board members were already derelict in their duties by enabling this corruption and abuse to happen under their watch? Wow!
Let’s get the fact straight.
The Director at the port is not a civil servant. He is a public sector worker.
There is a private sector board that appoints the director and could have fired him.
The Director is one of the higest paid directors in the public service. Probably more than the Governor ,Premier and the DG.
Now you see why these run away SAGC’s fought the public authorities law. They didn’t want to be held accountable. Sadly the Law cannot control weak private sector board members.
The public authorities law will go down as one of the most important laws the PPM every passed.
Even in the civil service such a flagrant abuse of the law would have been dealt with.
Thank you Premier and Deputy Governor for getting the public authorities law passed. We call for this weak private sector board to be replaced.
CNS please publish the names of the Board Members.
CNS: The list is on the PACI website here.
Really Facts please.
Well they passed a new Procurement Law recently too I hear. That should come in handy when they buying the toilet paper and Lysol spray to clean up all the s___ that the former Leader of the Opposition still spewing out, only now as the Honourable Speaker instead, but your Premier couldn’t wait to have it on his carpet.
I guess that’s why he had to get a full-time vehicle and driver in Cayman; he was already getting that abroad from the Port Authority. Kiss my neck.
The things we do for power . . and sell to the stupid voters as “National Unity”.
Finally.The lid is off the port. AG you are doing a great job. Cns stick with it cause lots more to come. Wonder if Moses pardon the board?
I have not read any allegations against the present board. The issues are in the civil service and appear historic (albeit relatively recent history).
It’s come full circle. Reads like port operations pre the year 2000. Current Chair was PD. OAG you only scratched the surface. Look at the RTG cranes; have an expert evavate the whole situation – a big surprise await?
Lodge???????
opens this weekend mate.
This goes higher.
Than the Speaker? Did the guy drive for the Governor as well?
OMG you get the cookie for funniest comment of the month
oh yeah baby this is going higher and wider. no more using the erring bush so dem big cruise ship not gonna dock in Kardinal avenue anytime soon.
“doggone but he start out good”
no…he did not.
Oh well, what’s new? Accountability, integrity, responsibility, honesty, get it right the first time, value for money, do not exist in most portfolios. No worries my appraisal will be just fine, promotion expected.
Driva dont stop at all !!! Straight west
Watch him get suspended for years now, with full pay and benefits.
This is a tiny fraction of the Port’s operations and has to be set against its profitability. I’m not saying these things don’t matter but they happen. The Port is fundamentally sound and well run regardless.
You are officially the dumbest person in the world. Your mama must be proud.
Isn’t it amazing how an MLA can simply request someone join them to travel by a telephone call and it is done?
Not true. That would seem to be corruption.
That’s nothing. Hundreds of people got granted status on less than that.
Some of them had to do more, like buy condos and choose the right realtors, or have sex with the right people…
Yes but remember his hands are clean and his heart is pure. LOL.
Wasn’t it his heart is milk and his hands are carrots?
Oh keep digging….
We are seeing suspensions and accountability in the civil service. Hopefully the public sector will soon be held to the same standard.
But most private sector boards who oversee these agencies are weak and out of touch. Ask the MACI staff.
Everyone one involved in this including those hired need to be fired/suspended immediately and replaced within a years time. They knew this was being done outside the books and they went along with it. The Director needs to be brought up on charges as well.
Such a shame, when a caymanian gets the power! They abuse it, step on people, what happen to others in the process. The Port gone down so bad now, I’m a government employee as well. My boss is great, but Mr Reid now went rogue… must thought he was above the Law. I was so disgusted when i was told that a hard working dedicated employee was fired months ago. When i ask they said he fired a caymainian !! Who at the time was on police bail for a matter and later was dismissed from the case. No charges at all, i’ve know XXXXX from he was a kid. Hardworking, community activist, community leader. Where’s the justice for him ??
Why does this surprise anyone. This goes on in the Brac all the time and the politicians there know it. CKIA have senior staff who are always at Spot Bay or Panama Canal playing dominoes during working hours, there is an Immigration Officer who is given every Thursday off (or any day that the barge is in) to work at the Port Authority on barge days, there is a customs clerical officer who travels up and down the road all day accompanying a senior customs officer, for what we do not know. The list goes on and on and nothing is done. They are protected.
The port isn’t only government dept that allows employee to go missing during working time. DOE come to mind I worked there once and same people are still getting away with doing there own stuff. This is serious problem and in part is due to CS allowing 2nd or 3rd businesses that they run during government time.
This must stop.
If you work for government you should give your minimum hours before conducting personal business at public expense, HOD should not give permission without assurances in writing.
You might be right about the last two sets of people in your comments but you sure are wrong with the first, and what is so bad is I can see you’re a smart person after reading your post. I think you have a problem with that individual and it’s unfair for you to make that statement, FYI dominoes are not played at the Panama until after working hours and Saturday and Sunday’s. This reminds me of a doctor a while back that loved playing dominoes at bar 29 and all he drank was Coca-Cola.. Shame on you…
The part about the CKIA officer is a lie. Dominoes are played late in the evening. As for Spot bay, barely anyone is ever there and those who are there in the day are not employed.
An all too prevalent problem. I worked in customs and saw this all the time. These family/friends run conglomerates need to be disbanded immediately. I was passed up on a promotion for someone with less in and experience but because they “knew somebody” they were advanced. I hope the OAG wring these fools out to dry hard. I’m not surprised McKeeva didn’t question the leave time given to that Port Authority employee. Whatever benefits him he doesn’t question.
Now why pick on the man – Big Mac needed a driver so he could be safe and refreshed to deal with important matters.
Please this island would be better off if he got lost permanently somewhere off island.
The sooner he leaves politics the better. He knowledge of the financial community when he was Minister Of Finance was zero. It still is. Of course , I forgot, he was involved in the First Cayman Bank fiasco and the sale of Michael Ryan’s condos, never mind the Florida casino scandal.
Role on the next elections.
Meanwhile well done the Auditor General in revealing the usual misdoings and identifying the usual suspects.
Funny, ain’t it. Decades of smoke coming from the same places and seemingly no fire anywhere!
$130,000 … YOU SURE this payment to “Stormy Daniels”
When will Government in general, and the premier and the Deputy Governor in particular get their heads out of their collective backsides and address the rampant corruption in Statutory Authorities, and government entities. This corruption has “ Third World Country “ stamped all over it.
DG too busy keeping fit to lift them heavy pay checks and allowance each month.
Gray matter …you must he using too much of your own product. The DG is responsible for the civil service. The Port authority is a part of the public sector.
This mess in firmly in the hands of a private sector board.
Go DG!!
When corruption becomes endemic, you cannot demarcate between whose official portfolio is responsible for private or public areas of corruption. If you are a senior official aware of corruption, and the failure of managers to deal with it, then whether or not within your own remit, you have to ensure that action is taken to expose that corruption.
2:07. Come on. These public sector bodies are accountable to a board made up by members of the private sector.
Sorry you can’t blame the Premier and DG for this.
The Premeir and his elected Government should change all board members.
Because they are part of the problem. They are in on all of this so why would they correct it.
Go check CINICO next for the breast implants that 1 or 2 have been fortunate to get.
CNS is it possible to FOI Reid’s response to the audit report that was submitted to the Board of Directors and Auditor General’s Office?
CNS: You could try. Perhaps FOI both the Port and the OAG.
I guess Clement Reid did not bow to every request from Miniser Moses Kirkconnell, Chief Officer Stran Bodden, Port Authority Board Chairman Errol Bush and deputy chair Gerry Kirkonnell or failed to blindly support every initiative like the cruise port.
Therefore the usual politics and modus operandi demands that there must be an audit to attempt to legitimately discredit a bright young Caymanian in a leadership role. Was Mr. Reid too closely affiliated with his predecessor Paul Hurlstone?
The Port Authority Board are responsible for management. The Port Authority Chief Financial Officer reports to the Director. The Director reports to the Board. The Board are political appointees who are loyal to Minister Kirkonnell and are all party supporters. Connect the dots…
Is this how you are trying to condone Clement’s behavior?
Only in Cayman, having read this catalogue of mismanagement, could all these problems be described as an attempt to “discredit a bright young Caymanian”. Only in Cayman could a very senior immigration officer be accused of harbouring an illegal alien, only in Cayman could a very senior customs officer be accused of avoiding customs duty, only in Cayman could a vehicle examiner write off a customer’s car by reckless driving, only in Cayman coud the head of the RCIPS Traffic Dept be found guilty of DUI and leaving the scene of an accident, only in Cayman could firemen engaged in a “speed test” write off a very expensive fire engine. These are just a few of “only in Cayman” incidents which by good fortune have not been covered up and I invite readers to add to the list. Note the common denominator.
So true! Nothing can happen without the boards approval! This seems to be in time for the new port and I am sure PPM are setting things up to put a puppet in place to have things run smooth………
o boy what a shame.
Where are the ethics of your people? It is no wonder expatriates don’t feel the need to comply with laws of Cayman.
another story which proves that cayman needs more qualified expats in all areas.
the cig civil service…. a perfect reflection of what happens when when locals are given jobs for no reason.
the private sector will never accept this and don’t ever again try to force locals on us…
It is NOT the civil service, it is a statutory authority. The Public Authorities Law ws brought in to curb their excesses and they all have fought it tooth and nail Now you all see why.
is anybody surprised???…just another day in wonderland.
read miller shaw or e&y reports…..
another glorious day for the civil service…..zzzzzzzzzzz
Not the civil service, hidjut
pedantic…..yawn….zzzzzzz
Having a good ol time down there eh???!!! ha ha ha?
You realize how pathetic you sound. Why don’t you read your own news for once instead of making these stupid comments in our local news forum. Get a life and move on. Cayman has already forgotten about you.
That port is the source of many issues on Cayman, not least the facilitator for stolen goods taken from the island residents.
Sadly it’s typical of many govt departments, with employees taking public money without performance or responsibility.
Come on DG get a grip on the CS you claim you want to be world class.
12:45. The DG is not responsible. But maybe he should be.
These Authorities are part of the public sector and was spun out of the civil service so that they could operate more efficiently and make money for Government.
They have failed miserably. One reason is that they successfully fought the Law that would oversee them. The Public Authorities Law which the DG and the Premier passed in 2016. Now you see why they fought the passage of the Law.
By the way the Port has a highly paid events manager …one issue thou where are the events?
Shame on the Director shame on the Board. Resign.
Cannot be true. The Hon. Speaker would never asked for a personal driver to provide services to him overseas at the expense of the Cayman people, without approvals. You cannot just spend the people’s money, you know.
I sure do miss the lol button
Well done CNS. This goes a whole lot deeper.
The whole process is corrupt. Take it higher.
Unfortunately, it is very difficult to enact any legal process these days involving government that does not come up against the masonic cabal.
To the Masons of the Cayman Islands.
The Living God has seen your corruption. He has seen how you feather your own nests at the expense of your own people. He is a righteous God and is giving you all the opportunity to come clean and confess your transgressions before the people of the Cayman Islands.
I urge you all to repent. Turn yourselves in to a local pastor (who is not a mason) and pray for direction.
Perhaps you will not have to serve too long in prison and when you come out, you can demonstrate how much you have all changed. Please do this before it is too late.
Alden McLaughlin, the Master Mason cannot save you.
12:36 hush talking rubbish. I am a mason and I can assure you that any wrongdoing by any mason has nothing to do with him being a mason. And a mason who does wrong gets expelled not supported. Ask Austin what his experience was!
Now tell me the last time you have seen any churches expell anyone for wrongdoing? Life in Cayman is replete with the church embracing and supporting even the most dastardly who are convicted of serious offences eg child molestation! Oh they will kick you out if you admit you have been gay from the day you were born or legally marry a same sex partner though!
By the way I will criticise anyone at least as quickly or quicker than you will for wrongdoing and I am not representating the lodge cause I am not a committed and regular member. I am also not against churches.
I just dont like nonsense, injustice or hypcrisy.
How in the hell would an Austin Harris even be invited to become a Mason in the first place?
My priest told me that Jesus was a Freemason, so what is your problem.
The senior civil servants not doing bad at all.
now that it is in the open…give him a raise and perhaps a cuban cigar!??
LMAO! Wow! boi I tell ya never a dull moment on this “fine God fairing Christian rock”
No mention of the business case for the need of the 6 million dollars crane set?
What is happening in the Civil service makes me ashamed to be a Caymanian.
Not the civil service….the statutory authorites. They have been ripping us off for years. Check the salaries of the Heads of Maritime, CAA and CIMA. They all hate the new PAL because it prevents them ripping us off.
So?……… What else is new!
another maverick in our midst. !!