NDIA alleged fraud…CEO approves millions in illegal spending
An audit report for April 5 to September 30, 2012 has fingered National Drainage and Irrigation Authority (NDIA)’s Chief Executive Officer in a scheme involving the approval of millions in illegal payments.
The report, which was prepared by the then Field Auditor, Pablo Singh, stated that funds, released under the Community Drainage and Improvement Project (CDIP), were misappropriated by the Chief Executive Officer, Lionel Wordsworth, and that even the Minister of Agriculture benefited from the fraud.
Minister Leslie amsammy
CDIP was established in 2006 by the Caribbean Development Bank to the tune of US$5.050M ($1billion). The programme was funded in 2007 directly through the Ministry of Finance, with a sum of $800M and shifted to the Ministry of Agriculture under NDIA.
According to the report, which was seen by Kaieteur News, no financials for NDIA was prepared reflecting the expenditure of the project. NIDA is required to maintain its own accounting records and is subject to separate reporting and audit.
It was recommended that financial statements for NDIA should be immediately prepared monthly, including CDIP’s releases and expenditure and supporting systems put in place so that the NIDA Act of 2004 is complied with.
Singh, who was dismissed last year from NDIA for breaching protocol by sending the damning audit report to President Donald Ramotar, discovered a series of financial irregularities in the operations of the entity. Singh had recommended the dismissal of Wordsworth and a Senior Engineer Aneel Chowbay. Besides the non-renewal of Chowbay’s contract, no other action was taken at the entity.
Payment to MMA
The report stated on May 28, 2012, $2M requested by the Accountant was approved by the CEO and paid to Mahaica/Mahaicony Abary Agricultural Development Authority (MMA-ADA), Region Five, without any documented reason, appropriation or a request from the Region.
It was noted that a CDIP staff and the Accountant signed an MMA-ADA receipt as receiving the $2M cheque, instead of a designated MMA-ADA staff on June 1, 2012.
The report stated the Accountant and an individual, who was identified, confirmed no works were done, but MMA-ADA claimed $7.8M on February 24, 2013 and March 29, 2012 for the month of February 2012.
The Region was asked by Wordsworth to suspend works for the month of February due to cash flow problems.
Lionel Wordsworth, CEO
“It is audit’s opinion that this disbursement by CDIP approved by the CEO-NDIA was illegal since no work was done,” the report stated.
Breach of Procurement Act
Singh reported that the procurement process was breached by NDIA deliberately sole-sourcing Phoenix payroll application from Phoenix Software for $825,000 on January 19, 2012, instead of utilizing the open tendering process. “It must be noted that there are other providers of payroll applications available at the time,” the report said.
Though there should be no negotiations between the procuring entity and bidders, NDIA re-negotiated with Phoenix Software, resulting in the procurement of the application for $799,000. “It is audit’s opinion that the breach of the Procurement Act 2003 and findings under this section were fraudulent by manipulating the open tendering/quotation procurement process avoiding the review and approval of NPTAB,” the report stated.
Minister Ali Baksh
According to the report, $10,000 of the CDIP funds was used to cover transportation costs for two truck-loads of items from Food for the Poor to Minister within the Ministry of Agriculture Ali Baksh’s residence in Campbellville. The request for payment was done by the Ministry’s Permanent Secretary, George Jervis and approved by Wordsworth.
Minister Dr. Leslie Ramsammy
The report revealed that office furniture for Dr. Ramsammy’s office, costing $402,000 was illegally paid to Starcomm using CDIP funds. The CEO who approved the payment explained that the Permanent Secretary submitted the request.
Payments to New Thriving Restaurant
Singh’s audit unearthed that a sum of money, reportedly spent on a technical meeting under the CDIP, was actually spent for a farewell function and personal use.
The report revealed that payment of $70,000 was incorrectly made using a quotation for dinner to New Thriving Restaurant via cheque dated August 14, 2012. The dinner was for participants attending a meeting with technical staff and overseas visitors on the said date.
The Company Secretary, who was responsible for the payment of the bill, allegedly made an additional claim of $36,618 and deliberately stated the expenses were for the technical meeting.
The report said a breakdown of the total cost of $106,618 revealed that $45,702 was spent on August 14 and $2,538 and $58,378 were spent on August 17 and 24.
It was noted that upon inquiry on September 9, the Company Secretary admitted that the monies were utilized for an attachment staff’s farewell and $2,538 was used for his personal expense and proceeded to refund the money the next day.
“It is audit’s opinion that (name given) Company Secretary made an attempt to pay his personal bill using CDIP’s fund and misrepresented the additional costs by stating the monies were for the technical meeting.
Singh had recommended, “Disciplinary action should be taken against the Company Secretary for his initial misrepresentation of expenses subsequently corrected upon audit’s intervention."
