THE Beaches and Parks Authority will terminate all current contracts after an audit found numerous problems and irregularities.
During a press conference at the Office of the Prime Minister Friday, Press Secretary Clint Watson said the contracts will be terminated in a legal manner, meaning contractors who have a valid control will be paid.
However,” Mr Watson said, “they will now be paid in a way that fully complies with all existing laws, regulations and best financial and accounting practice.
“Given that there is no information on file relating to the ‘Know Your Customer’ requirements, every contractor will be required to attend in person at a venue to be announced shortly and provide the basic KYC documentation for the maintenance of proper internal records of the Authority.
“They will have to produce a document or documents to prove their identity (such as a passport, driver’s licence or NIB card), they will have to confirm their bank details, and they will have to be tax and NIB compliant, as the law requires.”
K Christie and Co Chartered Accountants conducted the audit. Auditors noted that the authority consistently received supplemental funding beyond its budget during the last three fiscal years.
“We did not identify the exact need for extra budgetary allocations and there is speculation that it was fueled more by the demand and requests for economic stimulation than by any real needs on the ground,” the report said.
“This operational review revealed a combination of material weaknesses and significant deficiencies that created an environment to facilitate such overruns.
“The material weaknesses stemmed principally from the board’s failure to exercise oversight by meeting regularly and requiring reports that would enable it to monitor the budget versus actual performance of the Authority. Additionally, the procedures within the Accounts and Inspection Department lack checks and balances that can militate against errors, improper behavior, and other risks. Deficiencies were reflected in the Authority’s inability to reduce risks and incorrect information.”
Mr Watson emphasised how the authority's spending skyrocketed above its budget.
He said: “From July 2019 – June 2020, the Authority’s budget for awarding contracts was $19.1 million. However, the Authority actually spent $25.9 million of the Bahamian people’s money on contracts, an overspend of $6.8 million, slightly more than 35% above amounts approved in the budget.
“From July 2020 – June 2021, the Authority’s expenditure skyrocketed. They were granted a budget of $15.2 million, but in fact spent $28.9 million, an overspend of $13.7 million, or an astonishing 90% higher than the budgeted amount.
“Their budget for this year, from July 2021 to June 2022 was $15.2 million. By October 31st, just four months into the financial year, the Authority had already spent $9.3 million. Had they continued spending money on contracts at this rate, they will have spent $27.9 million, an overspend of $12.7 million, amounting to more than 83% above the budgeted allocation.”
Mr Watson added: “Given the three years of massive over-spend on contracts, our New Day Administration commissioned a leading accounting firm to conduct an Audit of the Authority’s finances, particularly in respect of the Authority’s Internal Controls and Operations.
"We received the Auditors’ Report yesterday. Their findings were so jaw-dropping that we decided to immediately release the full report, so that the Bahamian people can see for themselves how their money has been spent by just one single authority during the former administration.”
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