Monies donated to the National Emergency Management Agency (NEMA) have yet to be accounted for, once again raising questions about government’s handling of funds entrusted to them by private citizens for hurricane relief efforts in the country.
An unaudited draft of the Bahamas National Disaster Relief and Recovery Fund tabled in the House of Assembly shows accounting records which remain askew more than a year-and-a-half after a complete report was promised by Minister of State, Mr James Smith.
In January of 2005, Mr Smith told a gathering that donors to the fund could be assured that their donations were used solely for emergency relief, repair, and reconstruction, and that even if two financial reports had to be compiled that year, the public would soon have a complete account of all financial transactions. Yesterday, however, the draft presented by Prime Minister Perry Christie is prefaced with the words: “We have not audited or reviewed these financial statements and accordingly express no assurance thereon.” And similar to what is highlighted in the draft’s points, the unaudited financial statement lacks “certain information” which could affect the accuracy of the Fund’s financial position.
The financial report, which reflects transactions for the year ending August 31, 2005, reveals that vouchers for material purchases have been issued without copies, control number, and in some cases, dollar values. As a result, the report goes on to say, outstanding commitments could not be determined, and therefore no adjustment has been made in the statements for “the impact of outstanding vouchers.”
Additionally, as comprehensive statements have not been provided to the accounting agency, the report also notes that accounts payable have not been reconciled, and “the balances presented may be understated.”
“The Fund does not have appropriate records of all donations received with restrictions on their use,” the draft report continues in its next point, and as a result, “the financial statements may not properly reflect the activities and balances of restricted funds.”
In the same paragraph, the report says that management did not separate restricted funds into a separate bank account, and therefore, “these funds have been commingled with other non-restricted funds.”
The report also goes on to point out that several bank accounts in various islands were closed as of August 31, 2005, and that the bank overdrafts in those islands represented cheques written which had not been presented by the account closing dates. Once again, the accounting agency for the funds was unable to determine the final disposition of these items.
The last item on the draft’s “Compilation Report” shows a discrepancy between NEMA and The Ministry of Housing, as the ministry claims it has been underpaid.
According to the item, the amount of $1,613,772.29, in the account “Accounts Payable – Ministry of Housing.” represents the amount owing as verified by the Fund. The accounting agency preparing the report notes that supporting schedules and related invoices that they have received confirm the amount to be accurate.
However, those funds do not match up to the $1,796,103.49 which the Ministry of Housing says is owed to them, according to the report.
The “Compilation Report” concludes by noting that the $182,331.20 difference, like several other items, has not been reconciled.
Although not official, the report seems to highlight the concerns of several donors who feared that their funds were being poorly managed.
In June of 2005, one of the principal shareholders in the Grand Bahama Port Authority, Sir Jack Hayward, complained that he was unable to get an accounting of the $1 million which he and his partner, the late Edward St George, donated to NEMA for the express purpose that the “funds be used for restoring the educational facilities an Grand Bahama.”
“I think this is one of the biggest scandals the Bahamas had in years,” Sir Jack said in August last year. “I cannot get anything out of Mr Carl Smith who is supposed to be in charge of NEMA.”
When The Tribune attempted to contact Mr Carl Smith, coordinator of NEMA, and Mr James Smith concerning the draft report, neither was available for comment.
By MARK HUMES, The Tribune
