CS still dodging process to award costly contracts
(CNS): Public servants tasked with finding contractors, consultants and vendors to deliver on government policy and projects are still awarding costly public contracts without going through the proper process set down in the law according to the latest report from the office of the auditor general. Millions of dollars of public cash was spent in 2023 by government authorities which didn’t go through an open competitive bid as required under the procurement act for contracts worth $250,000 or more.
Writing in a report reviewing government’s accounts for 2023, Sue Winspear the auditor general said there were several instances of non-compliance with the Procurement Act and Regulations even after she has warned government departments about this in previous reports and the law has been in force now for some six years setting out a clear process about how public money should be spent.
“Some public bodies have procured goods and services without approval from the public procurement committee, while others have directly awarded contracts for procuring goods and services without approved business cases,” she said. “I am disappointed that these issues persist. They must be addressed to ensure that public bodies get value for money when procuring goods and services using public funds.”
Detailing some of the irregularities and circumvention of the legislation Winspear said the Cayman Islands National Attractions Authority (formerly TAB) spent CI$667,000 on a children’s garden at the Botanic Park in the absence of a business case to justify the project. Meanwhile, a contract worth CI$417,000 was awarded to a janitorial company by the education ministry without going through the procurement process and was unable to provide the documentation to support the renewal of a more than half million dollar janitorial contract for John Gray High School.
Of all the ministries expected to know better even the financial services and commerce ministry was unable to provide any new contracts or renewal process to support the spending of some $3.1million on IT contracts since the first one was signed more than 13 years ago. This was documented in Winpear’s 2022 report and staff advised to address the problem which clearly has not been done., The ministry also spent close to another half million dollars on legal services without supporting renewal contracts after the first one was awarded in 2019.
The home affairs ministry also spent around CI$2million on fire trucks and military vehicles for the regiment but did not post details of the award on the procurement site as required. OfReg also signed a deal for an IT contract worth over a quarter of a million dollars without approval from the procurement committee.
Not every potential contract needs to go through the public procurement committee but those valued between CI$100,000 and $250,000 still need to be supported by a business case and processed through the relevant public authorities internal committees. But Winspear said she found numerous instances where neither a business case or a competitive process had been undertaken.
Awarding of contracts without justification, in the absence of a competitive process, conducted behind closed doors leaves the public purse vulnerable. What can be extremely lucrative contracts pave the way for potential corrupt practices. Winspear is by no means the first auditor general to raise concerns about the staggering sums that are awarded without the requisite transparency, justification and demonstration of value for money.
In addition to the legislation a code of conduct covering the expected behaviour of both public officials and suppliers of government goods and services was introduced in 2019 to set the standards that both sides must adhere to when it comes to government procurement.
Under the code civil servants who break it can be fired and suppliers barred from doing business with the government in future. The code is designed to prevent corruption, collusion, bid-rigging or any other anti-competitive activity in the procurement process and also prevents the engagement, directly or indirectly, of political lobbying to influence the process.
However, to date CNS is unaware of any accountability in relation to public servants or vendors being held accountable for breaches of the law or code as documented by Winspear in this and previous reports about the failings surrounding the procurement of services.
CNS Note: An earlier version of this story included the spending of CI$9.5million Cayman Islands Monetary Authority for the fit out of its new offices in Cricket Square without going through the public procurement committee however, since the report was published the auditor general has said this particular contract could be exempt from the usual procurement regulations as it relates to a property lease
See the AG’s report here.
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Category: Local News
Get that sniffer dog from Cayman Community Farm, Chris Johnson, on the job. With his mate Fabian it would be like Starky and Hutch . They would uncover the corruptionthat is going on.
Someone PLEASE have the balls to throw them in jail.
The 1990s Peter Goff/McCarthy initiative to decentralise finances has led to untold Spending$$$ over the years.
No calculatue can hold the total..MASSIVE Overspendings. Galleria Bypass road.. New Batabano Highway – and the DART Concessions Giveaways. Airport Renovation. Dr Horter Hospital. Tom Jones. CHina Harbor. John Gray and ALL the failed school projects eg West Bay n GT Primary!
etc.
Some Square Jaw Bullwinkle grinning nincompoops have further manipulated the system, by breaking the pre Contracts into 4 or more pieces to hide true costs!
Eg. The projected costs of the Brac Mega High School do NOT include the cost of the land …purchased for well over a Million$$$$
No Caymanian child should need a scholarship if that Money was saved. Sir Vassel and other stalwarts gone are tweedling over!
For the sake of accuracy, it should be noted that the Children’s Garden project at the Botanic Park was entirely achieved with donated money and used no Government funds at all.
missing the point
by your logic, the turtle farm can receive 6,000,000 to build a roller coaster from cruise lines and it is okay because it was all donated?
Even the Octopus in the photo was donated along with all the other cement sculptures.
When you have those incharge who are materialistically compromised and totally corrupt and complicit because they have come here to enjoy their retirement and acquire wealth whilst they count down the days.What do you honestly expect and those whom we employ because we have been brainwashed and mind conditioned to believe they are only here to look out for our best interest.Our procurement office leadership has clearly stated that the procurement law is merely guide line to which they will act accordingly in this society of material whores and corrupt govt and political prostitutes .
$9.5 million to fit out CIMA’s new lease office at cricket square. Did I read this correct?
We learnin now Bobo.
thank you. Dont hate.
Game recognise Game
Why are Caymanians with influence so corrupt? Is it in the DNA?
They can’t resist the shiny things
Definitely gonna need another octopus for Kenny World.
And a snow machine.
any comment ppm?
any comment Mrs governor?
any comment chamber of commerce?
Keep asking….
How many recommendations of the miller-shaw or ernst & young reports have been implemented?
legge was right
Hashtag
Cayman is governed by muppets. What do you expect?
#leggesaywha
Ag for premier.
I see the note from CNS about Cima…but has anyone ever been into that space? It’s absolutely extravagant and mostly empty. They are paying for a class A office space which they certainly don’t need, and paid 7 figures for the fit out which they certainly don’t need and if you go in there most of the desks and computers have no bodies.
Our financial regulator literally pissing away our money.
I mean it started to look a little fishy seeing Robson Construction trucks on every government job.
“Writing in a report reviewing government’s accounts for 2023, Sue Winspear the auditor general said there were several instances of non-compliance with the Procurement Act and Regulations even after she has warned government departments about this in previous reports and the law has been in force now for some six years setting out a clear process about how public money should be spent.”
First mistake AG, you wrote it in a Report. I can guarantee you 90% of the elected members didnt read the report and those same Civil Servants you wrote about know this.
I am pretty sure most of this took place when Panton was Premier, yet another shining example of his inability to run this country despite his claims that he was the change we wanted.
I am so depressed right now. The past 4 years has been one failure after the other.
You think Wayne Panton was going to fix everything in a couple of years? He was faced with resistance and downright disobeying at every turn. One reason he stepped down was disillusionment.
Wayne assembled this bunch of criminals and idiots in the name of power. He shoulders most of the blame.
This is the same Civil Service who send you letters when you decide to drop the completely useless but mandatory SHIC insurance plans being offered to people (where you pay more in premiums than they offer in coverage..yes did the math) and threaten to prosecute you for not having health insurance.
This is the same CS that is responsible for enforcing the laws and ensuring good governance held up by the rule of law will keep our democracy fair, balanced and thriving.
This is the same CS that allows Ministers to tell them to ignore the law and “do as I say!!”.
Rules for thee but not for me.
Someone toss the Governor another blanket we dont want to wake her.
One look at the relationships between certain government officials and those awarded the contracts will answer why these did not go to tender. Either family members or backhand deals involved. Take a look who is awarded contracts in the Brac.
is this the world class civil service that the DG talks about, the service he is in charge of. Shameful i dare say, it calls for his resignation immediately, particularly since this appears not to be a today problem only.
Resign along with those responsible and you might save face. Otherwise [prepare for a full police investigation involving the UK. Its time .
ignoramus. Read the laws. It’s Franz.
Corruption in Cayman… What a shock!
26 @12:42pm. How about shutting down the office of Deputy Governor/Head of the Civil Circus? The current postholder and those he directs obviously can’t follow laws!
It’s gross maladministration. A class action lawsuit by the people of Cayman for the people of Cayman could easily succeed!!
Any lawyer out there who is impervious to local politics care to offer pro-bono services to that end?
OUR Civil Service is failing us in service delivery and intentionally avoiding legal spending guidelines in wasting (stealing?) OUR money!
“Shortfall? No problem, we’ll just sell more work permits!”
Enough is enough!
and when middle level staff go to him with complaints such as these he does nothing. They end up finding out you went and you pay for it.
There’s certainly enough stolen loot that a litigation team might consider working on recovery contingency, but would need evidence from someone with inside detail, to come forward. Perhaps if they were cut in to the back end contingency fund, like SEC cases, there would be a stampede of front row civil servant eyewitnesses who can easily recall where all the bodies are buried…I would not be opposed to this.
We may like Franz, think he is a nice guy and all, but he clearly doesn’t have control of the Civil Service.
It’s completely unlikable to be actively bleeding Cayman. Screw him frankly, and all the others that are doing and enabling this. It’s a disgrace.
Kleptocracy.
This is the bottom of the bucket; our responses are reduced to clicking on an angry face to express our dissatisfaction. Other than that, we have zero recourse or influence over that which the government does. We are cattle.
You could use votes, but as the electorate is as corrupt as their representatives, GOOD LUCK!
So what if they throw some jobs to their friends. Just make sure that the cash gets spread around!
The way the civil service is run and all the scandals that come out of it is due to the lack of accountability. This means that the civil service is more of a danger to the country than the clowns that are elected as MP’s.
MP’s do not control the civil service and civil servants are not answerable to MP’s. Their boss is the deputy governor who looks the other way on so many things that it is almost criminal what is allowed to go unchecked.
You know so little if you believe Ministers aren’t calling the shots. They even decide which roads are paved when.
No wonder this administration wants to scrap the FFR. They want free reign to do whatever they like and award their buddies with lucrative contracts and to those who provide the juicy kickbacks.
Dan Duguay painted this corruption picture 8 years ago before he had to high tail out of Dodge, nothing has changed except the the size of unaudited financials.
The excuses for the Deputy Governor will be mouthwatering then all that failed to follow the rules will get promotions and “Franzie awards”
Oh, I can hear Franz now…”from this point forward”…
Total BS from someone who is incapable of leading a dog on a leash, much less an entity the size of the CS!
Thank the lord for the Governor and FCDO to keep these corrupt islands in check.. oh wait.
Civil Servants do NOT attend the training sessions provided by the CIG and ACC on the matter to maintain plausible deniability ! So in case push comes to shove they can deny their knowledge of the situation and issue and continue to fail upwards !
Those training sessions should have mandatory attendance especially concerning anyone in charge of tendering offers ! Until that happens the carnival 🎡 of corruption and collusion will continue unabated!
Just Another Day in Absurdistan
My dear Ambassador ! It has been such a long time since I read from you ! I hope you are well and happy !
Yours truly,
The Head Janitor of Starship Cayman, as known as Cayman’s Ministry Of Silly Walks !
The Civil Service does not listen to the Auditor General. Can the government look at shutting down that office ?
There is really no need for it.
The DG and his loyal lieutenants do not listen to anybody because corruption and maladministration are rewarded to senior positions
And this is exactly where the ACC should be deeply probing for conflicts and corruption, for here is the heart of it.
You can wait on that…