OAG: MITAMA broke law re CI$6M spent on o’seas promos
(CNS): The former administration broke the law when it committed the current government to around $6 million in spending over the next five years on overseas promotion. The former premier’s ministry signed agreements and contracts to open overseas offices and attend an Expo in Dubai just days before and after the election. The breaches of the Constitution as well as breaches of the public service and public finance management laws have been exposed in a report by the Office of the Auditor General, which has not yet been published but was recently delivered to CNS.
The damning report raises a number of questions about how former premier Alden McLaughlin, now Sir Alden, and senior staff in his Ministry of International Trade, Aviation and Maritime Affairs handled the financing and staffing of three proposed overseas offices to promote Cayman in Asia, the United States and Europe, as well as attendance at the long-running Dubai World Expo.
CNS became aware of the report at the end of last year and requested a copy of it, which we have since learned examines the mismanagement of public funds and questions why the previous government committed the country to new policies after calling an election.
While Auditor General Sue Winsper confirmed such a report existed, she said it was not hers to release and she was unable to comment. The report was conducted at the direction of the governor after the new PACT administration raised concerns about the chain of events that had landed it with new policies relating to the offices and significant financial commitments for the next five years that had not been approved by Parliament.
When we approached the governor’s office, we were directed to the deputy governor’s office. Officials there told CNS that they could not release the report as an internal inquiry was now underway relating to the civil servants involved. On 21 December we submitted a freedom of information request. Then on 11 January, the ministry asked for an extension in light of the internal report expected to be concluded today, 31 January.
While we have not yet received a copy of the report through the official channels, the report found its way to CNS this weekend.
In the document, Winspear concludes that breaches of both section 55 of the Constitution and section 7 (3) of the Public Service Management Act, as well as section (12) 2 of the Public Finance and Management Act were made after the ministry recruited staff and signed five-year and open-ended contracts with five senior staff for the overseas offices.
This all happened between 9 and 20 April, literally days before and after the election when the Unity government was removed from office.
The chief officer of the ministry, Eric Bush, also signed a contract with Alee Fa’amoe, the husband of the deputy chief officer in the ministry, Andrea Fa’amoe, to take up the temporary job of commissioner for the Dubai Expo. This post and an assistant post were not properly evaluated by the government’s internal job system.
Although the DCO had recused herself from the hiring process, there was no documentary evidence about how the conflict in this situation was to be addressed, Winspear said.
When the new government was elected, it re-evaluated the need for the overseas offices and participation in Dubai and was worried that it was legally bound by the policies of the previous government that were rolled out and committed to just weeks before the election.
Winspear warned that the actions by the previous administration have not only committed the current government to spending almost CI$6 million, but it has also had an impact on policy.
Last week the PPM took aim at the government, criticising PACT over the recent grey-listing and suggesting that by not opening the Brussels office, they had risked the financial services sector.
In response, the current financial services ministry told CNS that allegations they were “dithering” over the opening of the Brussels office was in order “to follow good governance processes and procedures, and to receive Parliamentary budget approval” for the funding of the overseas offices, which, according to the report, had not been received by the previous administration.
“The opening of the overseas offices does not affect whether or not the EU lists the Cayman Islands,” the ministry said, explaining that the listing is directly linked to the long-standing situation of Cayman’s grey-listing by the Financial Action Task Force in relation to our anti-money laundering regime, which happened on the Unity government’s watch. The ministry said that completing the FATF action plan would assist with the EU delisting, not opening overseas offices.
Of particular concern for Winspear was that Chief Officer Bush continued with the novel policies and signing deals to find staff and secure permission for the overseas offices after the election.
She pointed out that the purpose of the civil service is to remain politically neutral while serving the government of the day. She said international best practice requires that no new policies or major agreements should be signed and settled during the time between when an election is called and election day.
But between 10 February, when McLaughlin called the election, and 20 April, while the government remained in question, the ministry signed at least five long-term contracts and one expensive temporary contract for staff.
Winspear pointed out that these were not the only costly commitments the previous administration committed the next government to in the weeks before the election. The government signed a deal with Dart for the ReGen waste-management contract just six weeks before the election.
In her report, Winspear urges the implementation of a pre-election policy to set out guidelines to civil servants about the use of public resources during the period running up to an election and to prevent ministers from initiating new policies or, as was the case with the overseas offices and the expo, have Cabinet vote to spend public cash without seeking parliamentary support.
Winspear said that while Cabinet has the power to vote money for exceptional circumstances, such as spending on the pandemic, she made it clear that none of the spending on the Expo or preparations for the offices constituted exceptional circumstance and so should have been approved by Parliament. As they were not, this was a breach of the law.
She pointed out that although the new government has a different policy position regarding overseas promotions, it is now committed to some $6 million it does not necessarily want to spend because of what could be legally binding contracts, all of which could have waited until the election results were concluded.
See the report in the CNS Library.
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Category: Government Administration, Government Finance, Government oversight, Politics
Sue Winsper is making some noise.
Suprised they allow her to stay, usually when the AG gets a bit too noisy and nosey their job magically dissapears and a replacement is found.
@2:31pm..If PPM had gotten back in, she would have been history..
Really Caymanians, when are we going to get enough of the same old crap? Are we so used to it and blind to it that it doesn’t matter anymore?
Lodge control, corruption and wastage in the public service, no accountability ever, poor service is the norm and is awarded, etc.! Meanwhile, our kids aren’t educated enough to get the jobs which drive our economy and they can’t afford any residence that’s being developed!! Poverty is at astounding levels!
We need more well-educated, serious contenders every election cycle, but not like some of the plastic types who appeared last time and are still drifting around in the media afterglow until it’s time for their next hurrah! Posers!
No. The Governor asked for the audit. Read the article!
More knighthoods to come.
You folks need a much stronger public bribery law.
Wait.
So HE the Governor who commissioned the investigation at the request of the new Premier, has now asked the DG and Sir Eric to go investigate themselves in secret?!
This is all Eric Bush doing. As it goes tho nothing will come about it and he will continue to screw up things.
Looks like Eric Bush needs one of those packages that former Chief Officer’s Alan Jones and Dorine Whittaker got!
Pact watch out cause he can’t be trusted!
and some fools speak of independence……..zzzzzzzzzzzzzz
All they need now is a BYOB party in the middle of a pandemic to show how competent they truly are.
Because the UK government is acting so morally and lawfully? They are the problem enabling and teaching this behaviour by example.
You have just described every democratically elected government in the world
another glorious day for the cig and the civil service?
who is surprised?…read any report or audit into the civil service……
read miller-shaw…read e&y report.
So THATS the kinda ting you need to do to get a knighthood eh? Break laws, sign cushy contracts with your buddies, overspend the public”s money, and then (Roy) try blame someone else.
It is not just Alden, Eric and Franz to blame. All the members of their Cabinet who approved the over spending are to blame as well, including Finance Minister Roy McTag – CIIPA need to review his ethics record.
But of course, meanwhile, the Cayman Islands Law Society would never deign to contemplate the participation in impropriety by any so called “officer of the court.”
If they spent it on education instead maybe they’d have another caymanian in a senior position. Instead they spend it on holidays and their locals leave school unqualified for any job
$6Million for one more Caymanian is a fairly steep price 😬😬😬
They took our jerbs!!!!
Where is the accountability? There will most likely be none as corruption, nepotism and incompetence are the name of the game in the Cayman Islands. The 6 million needs to be refunded to the government by the members of the previous government and, if the constitution was breached, there needs to be accountability for all involved.
All typical of stuff reported to the Ombudsman. Crickets.
Ms Winspear tread carefully, or at the very least check in with Dan Duguay
If the report belonged to the deputy governor office doesn’t that indicate that he asked for the audit?
Why not wait until the enquiry was finished and action taken before we started jumping to conclusions.
Typical Caymanian response, let’s see how many caymanians we can destroy.
This was not Eric’s doing alone. He was enabled and facilitated, by others. We know that, and you know that. Don’t protest too much. It just draws more attention.
Because 9:56 if the report had not found it’s ******* way to CNS do you honestly believe the public servants doing their best to contain this **** ** would have openly released it to the public ? – and if you read the ******* article it wasn’t the DG who commissioned the report ‘it was conducted at the direction of the governor after the new PACT administration raised concerns about the chain of events that had landed it with new policies relating to the offices and significant financial commitments for the next five years that had not been approved by Parliament’
Typical Cayman defense. If it’s a local who is involved in tomfoolery, it’s okay. If it’s an expat, we burn them at the proverbial stake.
@6:56am..If you read the majority of these posts you will find that most of them are for prosecuting and holding those “Caymanians” responsible.
It’s a very simple solution, stop commiting fraud.
You keep getting caught and try to blame the people who catch you at it, rather than the Caymanians doing it.
Bullshit. This Cabal operating free from legal restraint and making it up as they go along have caused incalculable harm to hundreds of Caymanians, to our environment and to our economy. This is not a one-off. It is typical of their methods of governance and has been obvious to all that can see under the rug, for more than a decade.
Franzie boy, just stop it now😇
@9:56pm..I believe the enquiry has been finished at least on the Auditor General’s side..Conclusions have been made. It is now up to the correct authorities to bring charges and prosecute them.
No way to sugar coat this unfortunately.
This mess shows how arrogant PPM, Alden, Eric and Franz were thinking the election was theirs.
Now the all secret PPM political meetings at Eric’s house in Prospect make sense. He is unfit to be a CO and senior civil servant. They are all a disgrace to this country thinking they are above the rules. All unfit for leadership and the positions they hold. They are worse than Boris Johnson.
Good journalism, CNS.
Best journalists on the island!
On anything but COVID.
Unlawful acts by civil servants? What a shock! Oh, the humanity!
I can’t wait to hear Roy or Alden’s take on this? They should be hanging their heads in shame..
Of particular concern for Winspear was that Chief Officer Bush continued with the novel policies and signing deals to find staff and secure permission for the overseas offices after the election.
The chief officer of the ministry, Eric Bush, also signed a contract with Alee Fa’amoe, the husband of the deputy chief officer in the ministry, Andrea Fa’amoe, to take up the temporary job of commissioner for the Dubai Expo. This post and an assistant post were not properly evaluated by the government’s internal job system.
LOL. All Lodge brothers.
Over to you Governor let’s see what you are made of?
We’ve already seen.
@8:06am
Well he gave Alden a Knighthood, maybe there is one in the works for the others complicit in this mess..
Cayman is a banana republic without bananas led by pirates in suits that pray before every meeting hoping the people continue to tolerate the lies and corruption. All involved should be criminally investigated.
So true, but no action will be forthcoming except hot air. This is Caymanian politics! We so desperately want to be respected, and we so desperately are ill-equipped to govern our little spit of rock!
the UK govt sets the example – so, what more could one expect, sadly.
Blame the UK and Dart. It’s what makes you special.
We got bananas here and plantains too.
There will be no change as long as the people continue to tolerate the lies and corruption. The former government and the Panton PACT-less Clown Car did not put themselves in charge. By what moronic process involving what morons did they get in power? (Ohh…yeah…by way of elections and Caymanian voters.)
Hmmm. I saw this last week and now wondering if Roy knew the shit was about to hit the fan and was trying to deflect to throw shade at the PACT Government before this was released.
https://www.youtube.com/watch?v=CLbcdHvEsT0
This is just the start of the releasing of the cover ups during the PPM administration. The sad thing is that rather than sending them to jail we are giving them Knighthood. I wonder if the Governor is re-thinking his lovey-dubby relationship with Alden and gang.
Dear Sir Alden McLaughlin, Mr. Manderson and Mr. Bush
In the interests of transparency please confirm the following:
What else happened between 2017-201 that the public don’t know about yet?
How many bad contracts and agreements were signed by the PPM led UNITY government that are potentially illegal and a complete waste of public funds?
How can the PPM, Mr. McLaughlin, Mr. Manderson and Mr. Eric Bush ever be trusted again when they flagrantly bend and breaks laws to suit a political agenda? This is a national scandal and should result in appropriate charges being placed for abuse of office and breaches of the constitution and PSML.
Sir Alden?, deknight him, it can be done.
Bush is great at signing contracts for his friends
Just ask anyone on the security industry !!
All overt. All well known. All without consequences.
#Leggewasright.
Please explain your frequent #leggewasright reference… or stop posting it if it is not worthy of being explained.
if you have been here long enough you will understand
David Legge was a leading journalist. He wrote an editorial suggesting corruption was prevalent and that the people of Cayman had become blind to it. The government responded by trying to destroy his newspaper.
Only problem was he was equally a part of the problem as he was always running pay for play schemes. If you bought advertising with him you’d get favorable write ups and he was a friend and protector of the elites. The only people in his book who were really corrupt were people outside his social circle.
So it was a case of the pot calling the kettle black.
You obviously don’t know the difference between corruption and unethical behavior. One is a crime and one is not.
Google David Legge and Cayman corruption:
https://www.theguardian.com/media/greenslade/2015/jun/15/cayman-islands-publisher-flees-after-row-over-fifa-editorial
“The paper criticised Cayman leaders over their supposed slow response to the allegations of bribery and also railed against “common” corruption in daily life in the Caymans. It called on officials to begin “exhaustive inquiries” into possible illicit activities that might have occurred in relation to the Fifa scandal.”
He had the courage to call out the endemic corruption in Cayman and was blasted for it with some politicians calling for his head.
Try to keep up will you.
If you Google Legge Cayman Islands and check the News tab you might learn something.
https://caymannewsservice.com/2015/06/the-man-who-ran/
https://www.nytimes.com/2015/06/09/sports/soccer/critical-of-fifa-publishers-flee.html?_r=1
As an aside – Most people might take this easy step or perhaps ask a friend before making a post like yours.
Read this.
https://caymannewsservice.com/2015/06/the-man-who-ran/
His CCTV fiasco, which will forever be useless. If they are working, the police wouldn’t need to constantly be asking for the publics assistance in solving crime. Eric Bush should’ve been history. Gone long ago but he got promoted and shipped overseas as a cover-up. The lodge works for the brothers.
His immigration fiasco is 100 times worse.
Why is it being suggested unlawful contracts are binding? Are they supposedly “irrevocable” just like some status grants, Attorney General? These contracts did not write themselves. Who advised? Who else is going to claim they were just “following orders?”
Reads story. Laughs in Joker.
This is a major test for the Governor.
What did he know?
When did he know?
Did he support of actions of EB and consent given by the DG?
The Governor, and the one before him, was either fully aware, or was unfit for office. If unfit for office, that makes him a perfect fit for leadership of the Cayman Islands.
8.46pm As usual when Caymanians break the law, blame the Governor!.
No. Just blame the government official responsible for good governance. Who would that be?
Sorry but this was approved in Cabinet with the Governor sitting there in charge of good governance. Plain useless or ??
@9:29pm
First of all, why do you assume the poster was/is Caymanian?
Secondly, it is quite obvious that the Governor was involved. what is wrong in asking what part he played and how much he knew?
I’m from the UK and I am quite aware of how our government works. Even if he is involved, they will make sure the people in the Cayman Islands will never know.
Time for some more Franzies to be handed out!
Where is the Anti-Corruption investigation?
They are busy considering writing the report into why they are not writing the report into why they have not written a report on their failure to investigate various status grants, or numerous acts of apparently overt corruption in the ALMOST TWO DECADES SINCE!!!
Hahahhahhahhahahhahahhahahhahahha
Yet Again. Yes.
But he is very well insulated and squared away!
So many examples of blatant abuses.
The continued private Security contract for government, in many areas, instead of hiring or training local people (instead of paying peanuts to immigrant staff) is a travesty.
They know locals can’t survive on Security Centre salaries.
Cancel these honeypot contracts, the shameful nepotism nepotism, and hire trusted locals on contract instead!
Nepotism? My dictionary defines it as something else.
The Civil Service is politically neutral? Not a chance. They contort to the whims of ministers, whilst literally ignoring the law, and the public they are paid to serve. The whole operation has become a stain on Cayman.
Not a thing will happen because our knight in shining armor was steering the ship and we all know he could never do anything wrong.
That CO and his pet CFO act as they are above the law, regulations or procedures ALL THE TIME… nothing new here, just business as usual in #worldclass CIG
If Eric Bush gets paid out after such gross misconduct or keeps his job then Franz needs to go! It is really that simple.
You don’t think Franz has responsibility?
And the Attorney General too.
And Sir Alden.
And the Ombudsman.
And the Commissioner of Police.
All watchdogs who slept and smiled and nodded while the shitshow continued, for years.
Oh what a tangled web we weave.
Just Another Day in Absurdistan
Let’s get one thing clear here people. NOTHING will come of this. The Chief Officer, Eric Bush, has a lot to answer for, as HE is the one responsible for ensuring that the public purse is managed within the laws of the country.
Franz Manderson, let’s see how you deal with this. Will everyone just lay low for a while until it blows over?! Or will you put action behind your words???!! We shall wait and see.
You are going to have a long wait, Mr. Anonymous.
Are you dreaming buddy? This is the Cayman Islands, the best money can buy!
Governor Roper where do you stand on this and the findings in the report?
Where is the accountability?
Eric Bush has again demonstrated how reckless and incompetent he has always been. He should be fired for gross misconduct in the same way others in the civil service have been fired. However, he would have worked with knowledge and implied consent of the DG so Mr. Manderson is not blameless and should have stopped such activities and waste time of public funds.
The senior levels of the civil service failed and we see the proof that it is a far way off from becoming a world class civil service.
The legacy of the PPM is the gift that keeps on giving
Not only a PPM issue. Bigotry, favoritism and mismanagement are systemic issues throughout the Civil Service under any political party. It’s high time for a complete civil service reform.
Franz and Eric really messed up this time and there can be no excuses or cover ups.
No pay out can be justified after ready AG’s report this irresponsible and breaches several laws. Heads must roll.
Bobos forever bobo
It’s still cheaper than the hurried $8million paid for Ernie Smatt’s land.. Maybe the same standards of outrage and investigation should apply to that expenditure as well.
At least Cayman will benefit from the Advertising and promotion from the $6M .
It is a F*&+Ing outrage that this only came about at the request of the Governor AFTER concerns were raised to him. This crap has been going on openly for a decade. Those responsible for enforcing laws, and good governance, have done nothing! DG. AG. SG. WTActualF?????
He or his predecessor was sitting right there in Cabinet when this was supposedly approved!
All I have to say, I heard New Scotland Yard going to Montserrat. Time for Cayman to do the right thing. BUT it’s Governor Roper who said Cayman is governed by Law and Order. Now is the time for him to shine.
Are you trying to be funny?
Why hold back, Mr. Governor. Can’t you see it’s your time to shine?
Great picture of two men that have made due to lodge
Wow Alden – now for the sake of Cayman Islands, please Remove that knighthood….Sir
Can that be changed to knight hoodlum?
The report details significant breaches by Chief Officer Eric Bush. As a high ranking civil servant he has again brought shame to his position. It is clear on the evidence he should not get a golden handshake or package considering the findings of serious constitutional breaches and the Public Services Management Law. No more excuses the time has come to make an example of him as he continues to fail to show impartiality and objectivity. He is the favored protege of former Premier Alden McLaughlin and the DG Manderson.
…and the man is supposed to be a JP as well, despicable
Cert. Hon.; JP, to you…
The consequences (if there are any, and I doubt there will be because we are corrupt to the core) should not end with Eric. He is a patsy.
This should be shocking, but it’s not. Not at all. But, since the characters are all local, all will be forgiven over some rundown and hugs.
FIRE all involved in this classic shit show. Start at the top and work down at every level no excuses no exceptions.
This is the way.
I say, 7:06 pm, Who will do the firing??? You know it’s nothing but a big fiasco.
Don’t worry, it’s all above board if the villagers do it and not an expat.
Bobo protection.
None of this is above board heads must role and there must be consequences
Village idiots
Dr. John Lee was an expat and Franz Manderson did not even have him investigated after the judge called out his lie in the Doctors Express trial. We don’t know how much that case cost us the people of the Cayman Islands. Btw- Dr Lee received an honour too
So did the head of the agency which carried out the illegal raid. You cannot make this shit up.
Surprise, surprise.
Air Miles Eric got Sir Alden between the eyes.
Duh, if anyone questioned that his administration was ethical or even legal or even had the People’s interest in mind they would’ve never fought so hard against us on the cruise birthing fiasco
Why isn’t Roy or Joey speaking up now?
Huh? Joey Who? Surely you jest lol
Got to figure out how to blame it on Wayne!
What’s new?
Whoops!!!
Sir Eric????
The man is as incompetent as it gets he would never hold a job in private sector and would be let go immediately
He has a job in the private sector. Isn’t that the point? He seems to have excelled at it. If anyone bothered to investigate, the connections would be immediately apparent.
…potentially quite lucrative, it seems.