Embattled chairman of the Cayman Islands Airports Authority (CIAA), Richard Arch, has resigned after being asked to do so by new Minister of Tourism Moses Kirkconnell.

Arch confirmed he had been asked to resign and said he would not seek any role with the CIAA in the future.

Arch has been the subject of much media backlash recently, especially over his handling of the dismissals of CIAA CEO Jeremy Jackson and the Authority’s financial officer, Shelly Ware. The latter is challenging her dismissal in the Cayman courts.

Kirkconnell said Mr. Arch’s resignation had nothing to do with any of the above. All government-appointed boards and commissions are now being reviewed as far as membership, he said.

Arch had also been accused of conflicts of interest in connection with his ownership of Air Agencies ground handling firm.

CAA board members have been accused of breaching the Anti-Corruption Law.

Arch has said he stands by all the decisions the board has made.

Cayman’s Auditor General, Alastair Swarbrick, has warned the board they had acted beyond their appointed role and created a significant risk that its decisions could be “conflicted or corrupt”.

His report lists concerns including:

Directors of the board sitting on project evaluation (procurement) committees to the board’s approval for the promotion of staff or an increase in salaries

Directors of the board sitting in on interviews below senior management level

Failure of the airport management to properly tender all its contracts over $50,000

Failure to have contracts signed

A number of discrepancies

The Board’s decision to sign an exclusive talks deal with a Canadian company to redevelop the airport was unlawful and did not meet the requirements of the Public Management and Finance Law.

“Beyond approving the operational policies for the organisation, the hiring of the chief executive officer and setting out its expectations for performance, the development of a strategic direction and the approval of an annual operational plan,” Swarbrick writes, “the board should only be receiving reports and making decisions that are the purview of its mandate.”

Please see the following related iNews Cayman stories:

Former CIAA financial controller seeks judicial review at: http://www.ieyenews.com/2013/05/former-ciaa-financial-controller-seeks-judicial-review/

Aud. Gen. finds CIAA board acted beyond its appointed role at: http://www.ieyenews.com/2013/04/aud-gen-finds-ciaa-board-acted-beyond-its-appointed-role/

Chairman of the CIAA’s Board issues Statement regarding forensic audit at: http://www.ieyenews.com/2013/02/chairman-of-the-ciaas-board-issues-statement-regarding-forensic-audit/

Aud. Gen. investigating “inappropriate activities” at the (CIAA) at: http://www.ieyenews.com/2013/02/aud-gen-investigating-inappropriate-activities-at-the-ciaa/