PACI spent CI$56k on 2022 Christmas Party
(CNS): Auditor General Sue Winspear has called out the Port Authority of the Cayman Islands (PACI) after it spent an “excessive amount” on a Christmas party last year, many times more than other government entities spent celebrating the festivities. The government limit is $40 per head, and with 166 employees at the end of 2022, the budget for the bash should have been no more than CI$6,640. However, the authority spent that on fireworks alone.
The party cost a total of CI$56,522, which is more than what 66% of the Cayman Islands’ workforce earn in a whole year and did not represent value for money, the auditor general said.
PACI does not take revenue from central government but instead operates on its own earnings from the fees it collects from local businesses and residents for handling cargo, to the tune of more than $20.4 million last year, and cruise passenger fees, which generated around $1.8 million.
However, in the past, the publicly owned authority has fallen into deficit and has been subsidised by central government.
In her report to the PACI board and management, Winspear advised them to “spend wisely in ensuring expenses paid for entertainment are reasonable and should be aligned with the average spending” across the rest of government.
“We noted that CI$56,522 was spent on 2022 Port Authority of the Cayman Islands Christmas party,” she wrote in the report. “CI$6,000 alone was paid for fireworks. This expenditure was approved by the Port Director. In comparing to the civil service, Cayman Islands Government approved CI$40 per person as Christmas stipend for 2022. The amount spent by Port Authority is many times above that and deemed to be excessive taken in the context of public sector.”
While management at the port said the expenditure for the party was approved by the board, the audit office said the approval was not documented in board minutes. “This is a weakness in governance,” Winspear said, adding that it is essential that decisions are documented.
The port said that going forward, entertainment will continue to be taken to the board for approval prior to the expenditure being committed, though there was no mention of cutting the budget.
While the port did generate a significant surplus this year of $16M, much of it was as a result of a revaluation gain from investment property of $2M and a favourable movement on the remeasurement of the defined benefit obligation of $18M, rather than from sound fiscal management.
The port sustained an operating loss of $1.3M, even after a busy year and bouncing back from the pandemic with the second-highest cargo volume in the last five years. But writing in the annual report, the director said the operating loss indicated that port fees need to be increased.
Operating revenue underperformed by 2%, or some $600,000 less than budgeted, with operating expenses of $25.2M, some $1.7M more than the budget amount of $23.6M.
Although the port received a clean audit with an unqualified opinion, the auditors still identified a number of significant matters relating to internal controls. These ranged from excessive spending on the Christmas party to non-compliance with procurement regulations and the Public Authorities Act.
The audit uncovered deficiencies in inventory management, errors in translating US dollars to Cayman Islands dollars, inconsistencies in the number of cruise passengers counted, issues with leases, as well as numerous accounting and reconciliation problems.
See the OAG’s report to management and the 2022 PACI annual report in the CNS Library.
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Category: Local News
I can tell port Authority one thing ..they can’t get me for no 6,000$ again, that was a deal, I na putting my barge out there again for under 10,000$ for that type of display. unnah should be making noise about all the concessions that we give to those suit case developers that jump off the plane only to use us…….
Has the Anti-Corruption Commission produced any meaningful results recently/ever? What exactly do they do?
Those dancing girls and catering a la Kenny sorry I mean “fireworks” don’t come cheap.
The road to corruption and national decline has a fast lane. If you want to see where Cayman is headed take to trip to South Africa. Or Jamaica.
And it’s the Jamaicans that are taking us there…even tho they now call themselves Caymanians.
The last time i checked, the Port Director was Caymanian and so were the Board Members. And Jamaicans cant become “Caymanians” without the Caymanians say so… But of course, everything bad in this country is because of Jamaica and Jamaicans.
It’s surprising that so many people are against celebrating the birthday of Jesus. Let’s not lose perspective and keep in mind that celebrating Jesus’ birthday keeps him from becoming angry and smiting these islands. So, it’s really an investment in public safety.
Quality WUM/trolling I must say!
I suggest that if people want to celebrate the birth of Christ, they spend the day in church. NOT at elaborate taxpayer supported parties.
Also for the record, the Port Authority is subsidized by tax payers, not only in the form of feels charged for “handling” but also when revenue is down and costs are up. And that’s not to mention that the central government through taxes and fees will pay for any new facility construction, which will soon come!
Where can we find a list of the Board members? Is this not on public record? Lets see who had all the fun at $500 a head.
The waste since PACT took office is astounding. The last bunch wasn’t perfect, but this is outrageous.
https://www.caymanport.com/board-of-director/
You can’t blame this on PACT. Blame this on the Chairperson
The administration of the day appoints the board members of statutory authorities. So yes, PACT is accountable too, especially when the financial reports are laid in parliament and justifications are being made for allocations.
Yes, waste of money, especially considering that there are multiple port employees who have family members receiving NAU assistance (note I did not say employees getting assistance).
The same money wasted could have been used to assist some needy families at Christmas. You don’t have to look far or hard to know who they are – we all have them in our families – somewhere along the way.
And it does not have to be “family”. Think of all the elderly who are struggling, all the widows, all the homes where the father has abandoned children.
You get the point, it just goes to show that those in Senior Management prefer to waste money and choose to get a headline for their elaborate party.
Sad this happens, but Port is not alone on this, could go on and on – but it is inherently part of our culture and will not end anytime soon.
Government has the money, you cant do government too bad, government owes me – are these not the atypical attitude one hears????
Reading the article this is unbelievable. Why do people in position tend to be so greedy? A few, not too long, years from now those on position will regret this greed and loose spending. The revenue doesn’t contribute to Government revenue so it is squandered. No wonder investors and offshore wealthy come to suckle on these shores. Our own are doing so and much more. There are so many in need and this is where revenue is used. Enjoy it while you can. The horse doesn’t know the value of the well until one day three is no more water.
What does greediness have to do with the spending . Might it not be that the Director and Board felt that the expenditure was justifiable and authorized it as a gesture of thanks to employees for their efforts throughout the year?. Did the Auditor General speak with the Chairman of the Board and it’s members . Notwithstanding there should have been a budget prepared and presented to the Board for its formal approval and this should have been placed in minutes of a meeting of the Board. Lesson to be learned and/or a reminder of best practice .
@Wa ya say…you seen to stick close to my comments though 🙂.
Greed have much to do with the spending if that much money is spent for a Christmas celebration. Being greedy is to use more than is reasonable. “having any excessive desire or appetite”, “having or showing an intense and selfish desire (for wealth or power)” “an insatiable desire for more (income, possessions, influence, power, privileges…”. Without trying to be rude in my reply do you realize the occasion of Christmas and the time of year where there’s the most need? You are telling me those funds were warranted in order to show staff appreciation for a year? Maybe CBC and WORC staff should have shared in that because I believe they would be more deserving. Heck most of the junior civil servants would have loved to be included. They keep the public purse and services afloat (despite our complaints). Isn’t there much need in this small community? Come on I don’t know who you are but realistically speaking…do you really–deep down inside yourself–do some soul searching and say or fathom this could have been justified? Might I ponder whether you were on the guest list?😉🤨
Until we get rid of FRANZ MANDERSON as he really serve no purpose to King nor Country how I hate to hear him say World Class Government oh please nothing world class going on at Fire Service, CBC, Planning,Police and lots other areas AND UNTIL WE break up ALL THESE BOARDS ESPECIALLY THE PORT BOARD.
8:38. You got in wrong. Our DG Manderson is not in charge of the port. However if you read the article which alludes to the fact that Manderson allows civil servants to spend $40 per person on their Christmas party, it would seem that our DG should be in charge of the port.
It is so important to read and understand how Government works before commending.
Government works?
All evidence to the contrary.
civil servants are no better.
more than half only work half the time and collect the full pay.
8:38. did you read the article? Get help please.
8:38. When you don’t understand a vision statement it’s time to get the help you really need.
Private sector boards to govern our Authorities is a not a bad idea. It’s who is appointed to the boards.
We have some of the best minds in the word in our private sector but politicians appoint their cronies and supporters. Reform the system.
“Best minds in the world in our private sector”
You gave me a good laugh with that one. This Island is full of people that can’t make it in the real world. Of course there are exceptions to that rule.
@ 8:35 p.m. Whoa.
Maybe Mr. Manderson–with all due respect–can boast the most because he has traveled worldwide and have been privy to be amongst many other jurisdictions’ civil services. As one of the fastest growing countries in the west he may have right to say that. The Cayman Islands are still a free country, the dollar (though barely holding on) is still fairly strong and people worldwide flocking to this island. And although the civil service was suggested to be reduced some months ago it still seems to be operating pretty reliably. All their properties are modern, well kept inside and out, safe, have clean restrooms and water fountains, comfortable and most staff are polite (as is Caymanian tradition). Of course if you have a complaint, are you not satisfied with the service this is still one country where if you write in with a complaint you get an answer within a reasonable time or you have a place to go (Ombudsman’s Office) or press one of the smokey faces on the customer service stand (which is registered by the DOg’s office). As we consider the size of our Islands this article should not have been in here about the port’s spending; it is a disgrace. The Cayman Islands are no longer the islands which time forgot; we seem to be the islands of ridicule. When we have these types of Articles having to be written. Those who took part of the decision making to spend this type of money on such an occasion should perhaps be holding their heads down (even if they didn’t wake up with a hangover the next morning).
Just this year they increased port fees by 400% so they should be good to keep the party going. Groceries will go up for the rest of us but so it go.
heads will roll for this!…
only joking…nothing stops the civil service clown show….
welcome to wonderland
6:27. Unfortunately port employees are not civil servants. The fact that the Port is an Authority should be a dead give away. Zzzzzzzzzzzzzzzz
take a break jobsworth….
anyone being paid from cig funds is a civil servsnt…no matter how you want to twist it….hence the incompetence and daily failures…
Sweet heavens Lord say it ain’t so.
This needs to be looked at.
56k of public money for a Christmas party? Sorry that looks like fraud. The relationship between whoever authorised this and the people it was spent with should be investigated.
The Board should hang their heads in shame..!..if they have any.
I wonder which “Local” restaurant was awarded the catering contract..?
Do you think it was up to date with its pension, health insurance, and employment of Caymanians obligations?
Yep 7.37. You got that right in one..!
Their further political connection, tho somewhat currently reduced, has protected them thus far.
@10:38 am 👏
Let’s not forget the Airports Authority board members jolly to Los Angeles on CAL inaugural flight.
Port and Airport …They have “look how wonderful I am” Kenny in common.!
Auditor General found nothing of substance or any wrongdoing at airport authority. Board functions as a team and holds management accountable by working together with clear objectives.
Try again with the mud slinging. Get help please.
Exactly.
Simple solution, no Christmas funds for 9 years. Seems easy. If they want a Christmas party they throw thier own funds in.
No Christmas funds at all! If you want a party then everyone should contribute. No public money whatsoever!
Having worked many years in the civil service in both London and Ottawa I have never heard of the state putting funds into Xmas parties for employees of the state.
Everyone in London and Ottawa always contributed individually for Xmas parties.
Problem we have here is that the CIG simply has too much money to throw around.
Oh isn’t it nice to live in a place that is so rich and overflows with funds. 😢
The problem is that the less principled board members have an inflated sense of self importance and entitlement , which in their minds, absolves them from the need to behave responsibly in positions of power.
@ Sir Humfrey thank you for an unbiased and independent input. Refreshing and certaining put the point into perspective.
This is why the public authorities fought against the public authorities act. They cannot accept civil service discipline when it comes to spending.
I keep saying this. Another private sector board strikes again.
When are we going to shut down this run away Authorities and return them to the civil service.
Hahahahahaahah
Civil service discipline
Franz, what is that ?
3:17. Civil service allows their staff to spend $40 on their Christmas party. That sounds like discipline to me.
Civil service has a travel policy that restricts business class travel. Ask the Authorities for their policies.
Give credit where it is due.
Can’t expect too much from Humpy Dumpty and skinny Vennie father. can we ?
His Excellency, President for Life, Field Marshal Al Hadji Doctor Idi Amin Dada, VC, DSO, MC, CBE, Lord of All the Beasts of the Earth and Fishes of the Seas and Conqueror of the British Empire in Africa in General and Uganda in Particular
salutes the PACI for their excellent use of the public purse. I have indeed much to learn from them.
This is nothing compared to the rest of the foolishness going on if you look harder
Just take a look at the vehicles being purchased for the ‘authorities’ and who get to use them.
@ 9:30 a.m. I give you credit here. But not only those vehicles. It appears there are now vehicles purchased annually for certain departments. And used frivolously. Including being parked in unscrupulous locations instead of adhering to the public’s services.
If the public does not see that the PACT GOvernment and its appointed Board(s) are on a spending spree it is simply because they do not want to see it!
SIPL Committee?
Fireworks?? WTF!!!who’s bright idea was this? The more I hear about these corruptions that continuously be swept under the rug the more I want direct rule. This is criminal. People homeless, people unemployed, can’t afford to live and you wasting our money on fireworks? So wrong on so many levels.
Is that the one where the captain of the ship dockside was scared a firework would land on deck and Booooomm..?
Take off the 6k for fireworks, that works out about $300 per head, assuming 100% of staff turned up. What the actual???
That money could be used to teach the drivers how to drive the big shipping containers around without lights on the rig that point into the faces of drivers directly behind them.
Such a shame and waste, just rlook what they’re doing with Expats’ “Tax” money. The public entities are truly being mismanaged.
NOT the civil service, please note. OK, bring it on, haters.
To be fair the unpaid civil servants (other than their salaries) do make a valuable contribution to the meetings..in my experience.
They have no vote and just watch as the greedy shout down any dissent .
Bet this isn’t the only government squander. No wonder CIG struggles with reporting on it’s accounts. Its a free for all and the party never stops.
It isn’t, government appointed auditors are easily fooled and thrown off the scent.
From what I see the Auditor General is doing a great job. Pray tell us what her team has missed. We do need whistleblowers.
I said ‘appointed’ auditors, they sub-contract some of the work. As for whistleblowing, great idea but there is never any confidentiality in Cayman, this is how corruption continues. There is no fear of being called out, because they will know who did it and you pay heavily for it. You can’t be fired for whistleblowing so they will find another reason.
Alternatively a long period of ‘gardening’ leave followed by an undisclosed settlement, and rock solid NDA. Money talks, BS walks!
I am aware of some work being subcontracted out. I was a partner at Coopers and PWC for 31 years so I know the system. My firms certainly would have spotted any corruption. They were trained accordingly.
Whistleblowing should be introduced. It would work.
@ChrisJohnson
👏
The Carnival is very sweet, Don’t stop the Car-Ni-Val….
NO government entity should be spending public funds for entertainment and providing alcohol. They should be discouraging drinking and driving, not encouraging it!
Maybe taxis were paid for them too.
Why are we not surpised.
When you have a board whose members have political ambitions, or represent the interests of current MPs, then these gestures of generosity will stand them in good stead at election time.
The ice luge alone cost $15,000.
Co Bodden and his father should be proud of their accomplishments.
Considering they both sit on the board, right?
And other boards quietly, very quietly, enjoying stipends and expenses with minimal benefit to Cayman.
And dont forget to fly over all the staff from Cayman Brac, put them up in hotel and provide rental cars.
Hey why not, just open up the checkbook! They can always hike port fees if there is a shortfall.
Open to the public?
work hard! play hard!
Is there any room for me this year? Please!
What a disgraceful waste. Take the $56,000 out of the Port Director’s salary. If he refuses, fire him.
Or just fire him and then file a judgment against him for the excess funds.
Let’s set an example.
Can’t fire him, he and all board members are UDP, and can see nothing wrong with dipping their hands in the public’s funds.
That is absolutely outrageous. And what will happen? Absolutely nothing. Nothing whatsoever. What a complete mess we’re in. Why doesn’t anyone do anything? Wayne? Where you at? Buffet lunch at some sustainability hot air event?
While excessive on paper, boosting morale through ways like this can go a long way in overall operating efficiency. Better to have a crew that WANTS to show up and work.
We’re talking about a 0.2% figure factored into the yearly operating cost. Negligible. And no, I don’t work there, but my employer spoils us like this, and everyone loves to work there.
so I guess you just skipped over the part where they are operating in a deficit.
If a Christmas party is what it takes to make an eployee show up to work, those are the WRONG employees.
Your employee might make a profit. They are in defect and we are funding it (not your employer). I’m all for morale boosting but not $6,000 on fireworks that literally go up in smoke. Stop government (& it’s related entities) spending money on those polluting waste of money fireworks and make a $1,000 donation to a needy family or two (boost their morale) & save the rest to offset your losses.
I remember a former Port Board chairman who recommended that the Board should forego their annual Christmas dinner, and donate those funds to a Charity.
That was done but evidently failed to set an example of responsible spending of public funds on the new board.
Your employer is NOT spending the PUBLIC’S MONEY.
Massive salary and stipend increases too in this uncontrolled self serving board.
my God. what a mess.
That’s just the trouble…lots of “WHAT A MESS” comments, but no action.
The PACI board is made up of Politically appointed and protected members, with an added layer of protection offered by their minister Kenneth Bryan.
Certain members are unfettered by the usual considerations of responsible behavior and leadership, and are enjoying their ability to stuff their pockets.
Subcommittees is the stealthy way to go…
That’s enough to take everyone to the Ritz-Carlton.
As always, easy to be generous with someone else’s money.