Fraud uncovered at Region 10 RDC

THREE employees of the Region 10 Regional Democratic Council have been charged and placed on $50,000 station bail each for allegedly colluding to falsify contracts.
They are expected to appear in court soon to answer to the charge.A team from the State Assets Recovery Unit (SARU), which falls under the Ministry of the Presidency, visited the region on Friday to commence investigating what was unearthed in a 2015 auditor’s report.

Police ‘E’ Division Commander Calvin Brutus told this newspaper on Friday that the employees were taken into custody by the team, and they gave the SARU team statements. The employees were placed on station bail until the external investigation being carried out by the team is completed. Upon completion of the investigation, the employees will be placed before the court.

The report has revealed several discrepancies that were deemed the basis for serious investigation, as they can result in conviction for those being found guilty. In view of these revelations, Regional Executive Officer (REO) Gavin Clarke has pledged to expose any employee or contractor under his watch who is engaged in fraudulent activities against the State.

Clarke, being cognisant of the legal consequences attached to these white collar crimes, said he will not, in any way, cover for any officer who has been found guilty. In a correspondence to the Office of the REO, the State Assets Recovery Unit referred to the seriousness of these offences and the consequences that will follow.

“An official who falsifies any account, statement, receipt or records; or conspires or colludes with any person to defraud the State, is guilty of an indictable offence and is liable of a fine of ($2M) and imprisonment of three years,” quoted the correspondence.

The REO told members at the Statutory Meeting held last Thursday that his job is to ensure proper management of the state’s assets and funds, and that he will make it his mandate to ensure those assets are not abused or misused.
“I am not here on any hustle, and I will make it my duty that persons under my watch remain in full compliance of what should be done the right way,” he said.

COLLUSION
According to Clarke, the majority of the discrepancies lie in the department dealing with public infrastructure. According to the report, there have been noticeable overpayments for contracts that are non-existent or have not been completed. In addition to this, the quality of the work done does not reflect the payment made.

It is strongly believed that the officers within the region are colluding with the contractors to falsify contracts and projects by adding variations to their work. In addition to this, the officers are allegedly making variations to contractor’s payments and are not reporting same to the REO.

The report has noted several other fraudulent acts that will be investigated. The Regional Chairman and the REO have noted several fictitious contracts that were hurriedly given to them to sign. They had to ask the Ministry to hold on some already signed.

These malpractices are a cause for much worry, and it seems that it has been happening for some time now under the tenure of the previous administration.

The Regional Chairman, in agreement with the stance of the Regional Executive Officer to be free from corruption, will be proceeding with whatever action is recommended by the Assets Recovery Unit.

DISAPPOINTMENT
The REO also voiced his disappointment over the quality of work that has been carried out by contractors after performing the final inspections on several projects. He said his mandate is to not only have the monies spent correctly, but to have value for the money.

“Upon doing several final inspections to buildings, I have noticed in some cases about 95 per cent of faults in the work done, and this has caused me to do a minus variation on several payments, as a lot of the work has not been completed to the standard it should,” the REO said.

Councillor Sandra Adams, commenting on the issue, voiced her disappointment by saying that every time the State is robbed of its funds, the progress of something or someone is hindered.

“Every time something like this occurs, a child may be uncomfortable in school due to the toilet facilities not fixed, or the furniture not being purchased; and these people need to understand that their actions are hindering the progress of the region,” she stressed.

The REO recommended that the Works Committee be re-enacted so that the burden is not left on his office to oversee all the projects. This committee will do continuous inspection on projects, and must do so at scheduled periods when important aspects of the construction are being carried out. This, he said, will minimise the amount of discrepancies which would be revealed at the final inspection.
The committee will also make a comparison with the inspection officers of the region so as to eradicate the amount of financial malpractices in the region.

REO Clarke said his mandate is to get it right; and whenever his tenure ends, his integrity must be unchallenged.

By Vanessa Braithwaite