Bush recruitment service and board members engaged in unethical practices

It shows just how much ex premier McKeeva Bush thought his power was absolute. He even recruited workers to be employed by government. Not that they did anything.

This was revealed by Cayman Islands Auditor General, Alastair Swarbrick, in his General Report on Financial & Performance” released last Tuesday (25). You can find it in today’s edition of iNews Cayman as one of our Front Stories.

This is what Swarbrick says about this latest revelation into Bush’s power complex that he could do anything:

“Two employees were documented as being hired as a result of instructions from the then Premier, Hon. McKeeva Bush. The employees were initially hired in January 2004 under his instruction at a time when he was Chairman of the Board of Directors.  Their duties were to install and maintain a buoy system used to control access of boats on top of the North Sound Stingray Sandbar, as well as to monitor the activities of boaters in the area and report on non­compliance with rules. In 2005, the two employees were terminated. In June 2009, the Premier verbally instructed the Port Director to reinstate the arrangements with the same two individuals at a rate of pay of $1,000 per month. Up to February 2012, a total of $90,000 had been paid to these individuals without any evidence of work being done.

“Senior management informed my auditors that the installation of the Buoys was never completed and no report of any kind has ever been filed.

“Management is responsible for the employment practices of PACI [PORT AUTHORITY OF THE CAYMAN ISLANDS] Board members and politicians should have no role to play.  The action identified above is a clear example of undue political influence and override that undermines the ability of an organization such as PACI to operate effectively.”

And also at the Port:

“We noted instances where members of the Board of Directors acted as agents in contract negotiations.  In one instance, for example, we noted that the Chairman of the Board signed a Service Level Agreement  (SLA) for the repairs of the Port Authority’s facility and then directed it to the Port Director who signed it a day later.”

Then the NHDT (NATIONAL HOUSING DEVELOPMENT TRUST)’s directors voted themselves a rise.

“Directors fees rose to $110,000 during 2010/11 from $49,000 a year earlier with meetings conducted more than four times a month. The amount paid to directors was increased by 100% to $800, $400 and $300 per meeting respectively for the Chairman, Deputy Chairman and other Directors by way of a resolution of the Board.

“During our audit, we identified directors were overpaid in the amount of $18,700 due to payment of fees at an incorrect rate. This amount included overpayment subsequent to the audit year and related to fees paid to the former Chairman and Deputy Chairman.”

Then at the CIDB (CAYMAN ISLANDS DEVELOPMENT BANK):

“Board of Directors acting in an administrative role: In 2009/10,the Chairman of the Board approved a Financial Stimulus Loan in the amount of $131K that had a shortfall in the life insurance coverage of 62%. The loan was not supported by the General Manager as the customer had a poor payment history. During 2010/11,the loan was converted to a business loan and increased to $329K to facilitate a payout to other financial institutions of $170K (consolidating external loans), despite the former loan being 5 months in arrears. This was approved by the Chairman. The total debt service ratio of the new loan was 53%,which is 8% in excess of the CIDB normal lending ratio of 45% and a credit reference check also revealed poor credit worthiness. The conditions stated on the appraisal form were also waived by the Chairman on the offer letter.

“A charge of $136K was registered on a property with value of only $132K. The CIDB standard official practice is to register a maximum charge of 90% of property value.  As at May 2012,the loan was 183 days in arrears.”

And finally over at the CIAA (CAYMAN ISLANDS AIRPORT AUTHORITY)

“Governance: CIAA’s Board of Directors (“the Board”) is responsible for the organization’s operations and its results. Our expectation is that, in line with good governance practices, that the board would be responsible for assessing the risks of the organization, setting the strategic direction, approving plans and policies and providing effective oversight of the executive management and holding them to account. Executive management, on the other hand, should be responsible for the operational activities and report to the Board.

“We found that the Board was operating in a capacity beyond the oversight role described above.

“For example:

•          board members sitting on an interview panel to recruit employees at a grade level below senior management;

•          board members participating on project  evaluation committees for procurement;

•          approving application(s) for businesses to operate at the airports; and

•          approving decisions for the disposal of equipment and the hiring of personnel.

“The actions noted put at risk the efficient and effective operations  of the entity and provide a significant opportunity for corrupt practices to exist.

“Furthermore, I have identified issues regarding the appointment of board members and the lack of procedures in place to ensure the effective management of conflicts of interest.  I am concerned that an entity with such significant legislative responsibilities as the CIAA has been operating outside the realm of acceptable governance practices.

Quite frankly, it all smells like rotting fish.

Q. What is the prime reason a member of Cayman’s public wishes to become a Member of the Legislative Assembly?

Q. What is the prime reason a member of Cayman’s public wishes to become a member of the boards of Statutory Bodies?

A. (to both) It’s so I can use my power to further my friends and myself.

After thought: And then I will be a good public servant out of a sense of my public duty. I hope that won’t take up too much time. However, I can elect myself a nice salary for my effort.