CI$8 million spent by CIG outside of rules
(CNS): Although all public bodies must comply with the law when procuring goods and services, Auditor General Sue Winspear revealed in a report made public last week that government departments and public authorities spent more than CI$8 million last year outside of the rules. There were more than fifteen cases where significant amounts of money were spent where entities failed to follow legislation.
“It was disappointing to note many instances of non-compliance with the Procurement Act and Regulations by public bodies,” Winspear wrote in Financial Reporting of the Cayman Islands Government: General Report 31 December 2022. She gave around a dozen examples of where civil servants did not seek approval from the Public Procurement Committee for projects valued at $250,000 or more.
The Ministry of Education awarded a janitorial contract for $330,000 without obtaining the required PPC approval, and the National Roads Authority awarded three contracts without PPC approval or where they exceeded the figure approved by the PPC, totalling over $700,000 spent without authority.
The Port Authority of the Cayman Islands (PACI) procured janitorial services for $330,000 without PPC approval, and the Ministry of Home Affairs bought various goods and services, mostly for the prison, totalling over $1.9 million without following any competitive procurement process.
The Cabinet Office failed to conduct any tendering process for a CI$103,000 contract, while the Ministry of Youth, Sports, Culture and Heritage also procured several contracts for services valued at more than $768,000 without any competitive bids. The Cayman National Cultural Foundation (CNCF) spent $185,000 without a business case approval by either the PPC or the managing director.
However, the Maritime Authority of the Cayman Islands (MACI) topped the list by spending some $2.4 million on surveyors and independent contractors without PPC approval.
The Ministry of Financial Services and Commerce also paid $2.6 million to a vendor for various computer services. The auditor general’s team found that the contract with this vendor was signed more than twelve years ago and there was no evidence of subsequent tendering or PPC approval for that contract. The same ministry has also paid US$180,000 annually for legal consultancy services since 2019, spending about $491,000 since then to the one vendor without approval from the PPC.
The report also documents failures by statutory authorities and government companies (SAGCs) to follow the Public Authorities Act (PPA). Many public authorities have not yet aligned their salary and benefits packages with the civil service as the law requires, and Winspear warned that some will face considerable difficulty meeting the increase in costs.
However, several SAGCs decided to significantly increase the stipend given to board members for turning up to meetings, even though they are supposed to be volunteers.
The Cayman Islands Development Bank, which the auditor general noted is dependent on government to remain viable, spent CI$111,000 on pay for its board members last year, compared to just CI$3,950 in 2021, a whopping 2,710% increase. The Port Authority also hiked the pay of its board members by 312%, paying a total of CI$127,808 in 2022 compared to $31,038 in 2021.
Meanwhile some boards are failing to meet in accordance with the legislation. The National Drug Council (NDC) board only met twice during the 2022 financial year. Winspear noted that this is inconsistent with the law, which requires boards to meet at least once every three months. And according to the report, the rules were broken when Infrastructure Minister Jay Ebanks called an NRA board meeting on 29 December 2022.
“This contravenes section 17(1)(c) of the PAA, which allows only the Chairman to call extraordinary board meetings,” Winspear wrote. “The PAA does not provide for a Minister to call board meetings. Only four out of eight directors attended the meeting of those entitled to vote, causing the meeting to proceed without the required quorum. This contravenes the PAA Section 17(1)(g).”
Board members of some SAGCs have failed to declare their financial interests at least once annually. Winspear said she had requested that senior management and board members submit their declaration of interest to the Office of the Auditor General covering the entire financial year.
“These would be used to identify any related parties and the resulting related party transactions,” she explained. “Some senior management personnel or board members did not declare their financial interests for the 2022 financial year… This means related party transactions and conflicts of interest could have gone undetected.”
This included some of the government authorities where directors had received significant increases in pay, including the PACI and the CIDB.
See the full report in the CNS Library.
- Fascinated
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Category: Government Finance, Government oversight, Politics
Then there is ‘approved spending’ such as the Smatts land north of the Lobster Pot. It was acquired two years ago and what has happened? Well they tore down the cottages, probably without planning permission. As a result there was no rental income. Since then the CIG has done nothing, no designs, no architect, no planning permission. Just plain nothing.
Procrastination is the thief of time.
A “friend” messaged “Patty you my friend and I’m just you asked me if I heard anything what anybody was saying and I didn’t want to say it and aaamm I just sent you one but Patty you people is talking everywhere I mean you the talk you know and that’s just I just from a friend. I was just trying to tell you just relax that’s all I don’t know what you were talking about. Maybe you should’ve been a little clearer to me and send to me what you were thinking but aam I’m just answering you from the other day when you were asking me.”
Another “friend” shared “…
Good morning. I think that advocacy is not common in the Cayman Islands. You will get ridiculed but that doesn’t mean you are doing anything wrong. We need more people out there trying to educate the public.”
My point is the perception. Us as the people, voters, are relied upon to not be in the know, not be informed, not ask questions, not hold any governments (past/present/future) accountable. We are the only free nation if our kind. Anywhere else the people truly have a voice, the media causes the accountability and leaders have dignity enough to know they should step down and save face. If not for themselves…moreso for their families and voters.
I can’t help but to wonder whoch of the “7 Governments” a certain MP implied government existing as when it came to spending. Why can’t the Cayman Islands be unblemished compared to other Caribbean/West Indian countries with these irregularities?! What will be done to reel and curb? Likely nothing. Everyone wants to leave a legacy with their names but cannot see where the islands are being steered. Many of our neighboring islands were once at similar crossroads. It is all a part of the process. We should use examples perhaps.
You can’t distribute $1bn to friends and family without breaking a few silly rules along the way!
And that’s all AG discovered .? Must have been some small samples they took. If you found 8 million rest assured there is a lot more.
PACT shame on you you need to comply with the Laws fellas or resign. Who the hell ina think ona is . It is not your money to spend as you please kapish. Oh for the cat o nine to come back.
So can someone help me out here. Since statutory authorities should follow PPA concerning salaries and benefits, does that also mean that retiring staff presently does not qualify for health insurance and pension from the Authorities.? Who is suppose to remedy that issue, should it be the head of the civil service, AKA Mr. Manderson Isn’t that an anomaly that should be remedied urgently? It is understood ( don’t know if it is true) that Statutory Authorities staff salaries are higher than civil service staff so by adjusting the salaries and putting in place health insurance and pension It would just be a matter of losing a bit of cash up front and gaining it back in health insurance and pension. It’s mind boggling that this is allowed to happen. What happens if someone retires, gets seriously ill, cannot afford private health insurance, uses up all the savings ( if any)? Do they just go over to NAU. Come on Mr.Manderson, surely you can do better than that.
It would be nice if CNS setup a spreadsheet in their library entitled “Public Boards Compensation – just the facts”.
This spreadsheet would contain the names of everyone serving on public boards, and this is already public information, along with compensation received since January 1, 2023.
I’m sure there are enough readers willing to assist with setting this up and keeping the information up-to-date.
It would be interesting to see the number of people serving on multiple boards and the total compensation received, including for “special” meetings etc.
This spreadsheet would be a valuable “keeping them honest” tool available to the public and will continue to be updated going forward after the next election(s).
The spreadsheet could also have columns with the names of local charities with checkmarks against board member names showing that they are donating their board fees to charity. Such public information should be enough to make anyone proud to serve on a public board.
CNS Note: Any volunteers?
Just a few FOIs from Mickey Mouse should do it 😊
CNS – fair enough -you cannot be expected to keep us relatively safe and orderly by yourself.
Oh wait. Hang on a minute…
Isn’t that the Governor’s job?
Perhaps she should be asked that detail?
Her response (or refusal to respond) would seem very newsworthy.
Start the listing with the NHDT Board
There are a few people shaking in their boots this morning with this type of comment lol.
Especially those who insisted on subcommittees meeting a couple of times a month to enhance their inflated board stipends…. If they have any conscience.
I remember being on a board about 20/25 years ago. If I remember correctly we got $100.00 per meeting. The Chairman got a bit more. If for any reason I couldn’t make the meeting I didn’t get the stipend. meetings started at 3:00 pm and sometimes went on until 9:00/10:00 at night. We rarely needed to have more than one meeting per month. We did it for “love of country” things have certainly changed.
In the 80/90s I sat on a board and we each got CI$75 per annum. Most years we donated it to charity but one year we actually splashed out and had a lunch !!
I am proud to say we were always the first to submit our accounts which always bore a clean opinion from the AG. Our MD was Angela Miller who did a great job and we had no difficulty in forming a quorum at each meeting.
Be sure to also list JPs who work many hours…for free.
https://www.caymanport.com/board-of-director/
If you leave a kid in a candy store without supervision, chances, the kid will help himself. My question is, where was the supervision?
I don’t think Boards have physical access to the cheque books or online banking system to pay themselves. who approved these payments and why did it take the Auditor General to raise concerns in late 2023 about what has been taking place in 2022?
Our systems of checks and balances are clearly not working, failure to question and challenge questionable payments is how corruption and fraud happens.
The Ministers approve the boards pay increase. The SAGCs have no control over this. Ports is Bryan and CIDB was increased by Saunders.
Isn’t the DG responsible for the Public Authorities Act? Me thought the recommendation for Board members’ compensation was through him in Cabinet.
Was there not an article, the Governor is not worried…
Albeit wrong, Jay Ebanks has actually done something??????? This man is single handedly the most inept, unqualified, uneducated and unprofessional of this so-called government. Snagglepuss would be a better choice.
Jay’s portfolio hasn’t been audited yet so that AG couldn’t let us know what is going on although most of us know. Will be interesting to see how many contracts were awarded without proper procurement as it is common knowledge his dad does alot of government work.
Been hearing that people are being pushed to the front of the line to get a house while others have waited for years.
Been hearing board members have contracts too.
Been hearing many disturbing things which I am sure the AG will uncover.
And when the Auditor general DOES discover wrongdoing, do you really think ANYONE, especially Minister Jay is going to care, or do anything about it..?
Politicians are now feeling free to do whatever best suits their personal needs and agendas, as they all look after each other.
FCO, time to step in and restore honest pre Mac Jamaicanisation era, leadership that Cayman deserves.
So when does King Charles intervene? These actions are criminal. Anywhere that good governances are in place would not have accepted this damning report.
This is an outrage! I sat on a Board for 5 years, the most we got paid was $150 per month, and some of us waived that fee.
When has it become fashionable to charge 10s of thousands to serve on Boards? Does the Administration that appointed these sharks know about this, or are they complicit? Why hasn’t anyone raised a concern about this before? Is it any wonder this Government can’t balance the budget when they have Boards paying themselves collectively over $100,000 per annum? Now that the auditor general has exposed this, what will the government do? we demand accountability.
The Port Board seem to be in it for personal gain judging by recent reports of rampant expenditure, NOT in the public interest.
You allowing this Kenny , or do you need their votes. ? Are you allowing this Wayne, or do you need Kenny..?
Anyone other than Mrs Winspear showing any concern on behalf of Caymanians..?
Wait until you see how much OfReg is paying in fees for their Board directors annually…..
Are we really saving the $250,000 the EY Report predicted would happen when this regulatory body was set up to combine the separate entities regulating the 3 specific markets????? Value for money???
Ofreg pays a fixed monthly stipend and that is publicly advertised when they are seeking directors, the problem is the Boards who are paid per meeting.
Check how many Board directors are on OfReg’s board and how much they are each paid monthly. Are we really getting value for money???
May be time the OAG updates the report in this CNS article from 2019: https://caymannewsservice.com/2019/02/ofreg-cima-directors-pay/
7.13pm I too sat on a board and all we got was coffee which I don’t drink. Was proud to serve my country. However most persons on island are no longer from Cayman or have Cayman at heart and certainly have no intention of helping anything but their wallet.
This report is a damning and glaring example of the total disregard for any ethical business norms by this government, and the past governments of some decades. What is even more disheartening is that NOTHING will come of it. All the powers are either involved, afraid to act or both. Yet we wonder why more and more persons (especially the youth) turn to criminal activities themselves? Couldn’t possibly be the example eh?
Boards have gotten out of hand creaming money from the public to show up at meetings and enjoy lunch while they play on their phones. It is a clear abuse of public office to collect what they do with many having little to no qualifications other than political patronage.
The issue is that they collect these extortionate sums with the full knowledge of the Ministers who recommend their appointments. No one is looking at this with any form of concern. If you think these numbers are concerning, wait until she looks at 2023 and tells the public who has been collecting what.
People have gone to prison and had their reputation ruined over a few hundred dollars they benefited from when holding office (NRA fill fiasco, NHDT selling insurance etc) they were rightfully prosecuted, but these board members have seemingly found a legal way to rob the public.
I don’t know how many other ways this administration will find to stick it to the Cayman Public.
Better than that is placing some of the same people strategically on various Boards so that there is great opportunity for collusion and development of the Family & Friends Enrichment Programmes. Then the setup of numerous subcommittees to continue milking fees for each meeting….
Maybe the OAG should look better at the Conflict of Interest Forms & Standards in public life info submitted by board directors in conjunction with minutes of boards to check out if what they submit is really truthful.
The Port Authority board is shameless in rewarding themselves massive stipend increases salaries and benefits…but Wayne can’t tell Kenny to control them, Kenny needs the Port workers votes, and Wayne needs Kenny to stay in office.
Nextvelections can’t come soon enough.
The problem starts when you provide compensation per meeting. The problem is further compounded by the Chairpersons of the Boards who are driven by the need (or greed) to make more and more money for themselves or their fellow Board members. Chairpersons have a fiduciary duty to act in the best interests of the organization, not themselves.
This behaviour starts and stops with the individual chairpersons of the Boards.
PACT can change the compensation to be a flat fee per month for each and every Board. Stop this BS.
Some Chairpersons do not understand or accept that their fiduciary duty is to act in the best interest of the organization. They and some board directors appear to collude to act in the best interest of private interests outside the organization and do their best to channel decisions to the benefit of these private entities.
I would be willing to sit on a board for free.
this is what serving the community in which you live means.
Me too, but I have no political allegiance, just decades of experience in an industry relevant to Cayman. I would do it for free too.
Bingo
Board members appointed by Cabinet. And this is how the cycle continues.
Shocking the Compass omitted the fact that last year millions have been spent outside of procurement guidelines in its article on the AG report: https://www.caymancompass.com/2023/11/01/auditor-general-government-can-improve-its-financial-reporting/
Prioritise the important stuff and apply the ink appropriately, get the full run down of this happening at the Kimpton instead 👍🖋️📰🧻
‘Healing & Meditation Workshop with Master Oh’
Incredible that the Procurement Law and regulations is being completely ignored by those who passed it.
Perhaps it’s simply an inconvenience to have an oversight of the procurement process..it means a contract cannot be awarded to someone you like , at any price…UDP style.
Right PACT.? Oh silly me, I forgot, you ARE UDP.
shocking, or telling?
and I see from the CPA agenda they want to spend $650,000 for some toilets at Governors Beach…. I bet that wasn’t tendered!
How can I be a board member?
#leggewasright
…and it seems, not a single police investigation in sight.
That you are corrupt?
The Cayman Islands Development Bank, which the auditor general noted is dependent on government to remain viable, spent CI$111,000 on pay for its board members last year, compared to just CI$3,950 in 2021, a whopping 2,710% increase. The Port Authority also hiked the pay of its board members by 312%, paying a total of CI$127,808 in 2022 compared to $31,038 in 2021.
probably about right & in keeping with the pace of inflation/current cost of living increases
That’s truly disgusting… The Port board members are enjoying a very comfortable ride at our expense.
Port charges will have to go up, our cost of living will go up, and the Port Board will blame it on “Inflation”.
What a steaming hot pile of sick this government is and the politicians that are involved with it.
Correction: What a steaming hot pile of sick each successive government is and the politicians that are involved with it.
Only clear exception seems to be Andre.
who cares…a $bilion is being wasted every year with nothing to show for it. that is the real crime.
There’s the elephant in the room.
Wait until Winspear discovers how much juju wasted on the new Watering Place park
Or how much she spent paving private driveways in Cayman Brac – resulting in the permanent deprivation of all government owned paving equipment from Grand Cayman, as I recall…
Still, that is nothing compared to the police budget.
Hey RCIP. Ya’ll having a nice afternoon? Spotted the unlawful tint in your car park yet?
CNS – Can we please know which Janitorial Companies, and when the contracts were awarded?
CNS: The report doesn’t name the companies. If you do an FOI, could you let us know?
Yet not one political excrement or government conspirator is arrested of even sanction or fired for this but or Governor is Happy????
I know the official duties, responsibilities and purview of our Governors has been fairly complex.
The reality is, their oversight exerts about as much influence as Royalty does upon Parliament. That is to say, none legal, but perhaps some in whispered favours.
You would think that she would be paying more attention in the interest of “good governance” but it is clear that no one is monitoring these Boards, the have a license to print their own paychecks and we the public have to honor it. #screwed
Paychecks that include performance bonuses. Ludicrous.
It’s fair to say that I speak for everyone that the one man that should be holding the purse managing all this money allocating it wisely guiding all among us to a brighter future to be firm and gracious to be bold yet wise to feed the children and stimulate the senses is Dwayne the Rock Seymour otherwise these mishaps will occur. The best of the best need to running the ship.
I assume this was sarcasm. Not 100% sure as people DID actually vote for this fool.
Ah these pesky rules brought in in good faith to keep folks honest but of course they are a little harder to implement and certain civil servants and, especially statutory authority bosses, don’t like hard work and attention to detail and some politicians just don’t want their support of their key voters and supporters to be discovered and hindered.
What are rules there for except to be broken! Cayman has loads of money so lets spend it while we can. Let the good times roll!
PACI..”Significant increases in pay”.!
Why is anyone surprised by this when everyone has political ambitions and needs to get as many supporters as they can.?
And why is no one surprised that no action is taken to reprimand or.remove those PACI members responsible.?
Marl road was the only entity that spoke up.
Our money. Taken from us, preventing us access to public services that would otherwise be provided, and put directly and indirectly into the pockets of those we elect or those in the civil service.
Its a national disgrace, yet the very people who oversee these things are also a part of it.
As a nation, we have nowhere to go to stop it. Makes me sick that a powerful few steal from so many with impunity.
I’m sorry, I gave Wayne a chance when he became Premier, but this PACT Government is seriously concerning for Cayman, both now and for the future.
The disgraceful conduct by Ministers – think Bernie’s sacking from Home Affairs and his pathetic sexual jokes, think Kenny’s promotion of his wife’s Real Estate business, his illegal bill boards, think Jon Jon crashing into a light pole and Wayne ‘fixing’ it so there was no charges brought, think Mac’s charges of sexual assault.
The shocking financial management across the board, highlighted by this report.
The ‘Independent’ mentality of just wanting what’s best for their district so they can get voted back in again.
The lack of actually doing anything meaningful for Cayman because those problems are difficult to address and may take longer than the 4 years that this Government has in power.
The list goes on…
I think it’s unrealistic to think that we’ll see a Government change before the next election (I don’t think anyone wants to take on this mess), but we need to have serious change at the polls.
People need to vote for candidates in an actual party, if you’re not in a party, then you are not able to provide realistic mandates, because, as we’ve seen from a group of independents, nothing material actually gets done.
I know that we’re short of realistic talent in Cayman, but I would implore voters to actually think about who they’re voting for.
Don’t vote for the person that gave your family status – they’ve bought your vote.
Don’t vote for the person that pays for your light bill or gas bill – they’ve bought your vote.
Don’t vote for the person that gave you a fridge – they’ve bought your vote.
All of the above is vote buying and it’s illegal. You are voting for a criminal. We have enough issues with crime in Cayman without voting in criminals – both past and present.
Vote for people who are willing to make change for all of Cayman, not just for their district.
You owe it to yourselves and to your children to vote people in to Government who are decent and who will do the best for our country.
Your vote is worth more than a free microwave.
Why do you blame only PACT when in reality this goes back decades?
actually, this report is based on last year’s spending. Squarely on PACT.
Ok then. my bad. Perhaps should have said ‘this behaviour’ to be clear. Corrected now. They’re all as bad as each other, won’t be long before they put us back on the grey list.
Absolutely, but that doesn’t absolve the fact that all of PACTs predecessors were no better as evidenced by all the perpetual reporting failures flagged up by the auditor general in previous years. Pointing at one ‘party’ without acknowledging the equally abysmal failures of others. Cayman deserves so much better.
This is what happens when the wealthiest guy on island who also owns the news and has political clout. Thank God for Sandy (CMR) and Wendy (CNS)!!!
He is not the wealthiest guy on the island. Otherwise, I agree.
Disagree.
Joey Wood was the most capable and dedicated Port Director.
The Port Authority board before PACT came into power were , through the majority being prudent business people, able to run and maintain the Port as a Business.
PACT replaced or caused the resignation of the most competent members and staff.
He was and is Moses sheep doing anything instructed. Look at his role the cruise betting project. Thank God CPR stopped them from going forward with that expensive disaster waiting to happen.
Joey proved at every meeting that he was guided by no agenda other than the well being of the Port as a Business.
Convenient for you to say he was Moses’ sheep . The true facts , if you can be bothered by them, are very different.
You do know that PACI had NO say if the cruise port went ahead or not Right..?
Agree with nearly everything you’ve said.
I think the party system with never yield favourable results for the people. It doesn’t work in the U.S. and it doesn’t work here.
We should have two votes: One for District, and one for Premier. Second place in Premier votes becomes Deputy Premier. This is the only hope of putting power back in the hands of the people.
Step two: Make the People’s Initiated Referendum process streamlined and simple. Good leaders should WANT us to take some of the blame. “Oh, you don’t know what works in government; you have dreams but we deal with reality, and the people should never be in charge of finance or any decisions.” That’s right, Skippy. You just keep drawing the ever-increasing dollars from us, and spending them in the ways that you want.
Of course, nobody in Cabinet will ever suggest or approve such changes. If we did away with the party system, Cabinet would be forced to work together, or face being replaced.
Start a petition in each of the 19 districts calling for election reform. Demand change. Make each and every one of them feel the pressure.
It can’t be a national movement, dodos will ignore the national movement.
Your words are sad truth but unfortunately this bribery has been going on for decades and is an accepted part of Caymanian culture. Poor, ignorant, corruptible plebs don’t know any different from casting a vote in kind for a short term material gain.
I’ve given up voting.
There is no one in my district worth the time.
Besides it only encourages them.
Do not forget about the civil service mafia
“Corruption” – dishonest or illegal behavior involving a person in a position of power.
Why does CIDB exist ? Just make them grants and remove the fallacy that the money will be paid back. This will eliminate the unnecessary administration costs.
Who is the Chairperson of the CIDB Board?
Is CIDB regulated by CIMA?
Mark Scotland
UDP Mark Scotland?
CNS – I think you’re missing the context of ‘rules’, It’s awful but can’t change, it’s Cayman Govt, same as it’s ever been. 😐
This is a damning report. PACT needs to exit now! Wayne, you are asleep at the wheel, too focused on keeping this sham of a gov’t together. Do the right thing and call an early election, for the love of God!
MACI / Joel Walton owe the people an explanation at minimum. 2.4 million in spending without approval sounds downright criminal.
And it’s not just pack it’s PPM it is every single government official here. when will people realize no one in government is for the people they’re just too enrich themselves and keep rights away from minority groups.
Well, the truth is, I don’t remember this complete lack of regard for the procurement rules and the guidelines for tenders with the previous PPM administration.
But this does reek of UDP-like behaviour. Nation Building Fund anyone?
Spoken like a true Regressive Party supporter.
Spoken like an honest man, a quality unacceptable to UDP “What’s in this for me” style of government.
PPM set up the Central Procurement Committee.
Really? Do you have a bad memory? And do you remember all the unqualified auditor reports?
And Joel knows better than that.
Everyone is on the take one way or another. This is normal in Cayman. $8 million is nothing. The whole business of the government is how to divvy up the $Billion$.