IC: Tufton’s ‘indirect’ influence led to $80m in contracts for friend’s firm

Cabinet Minister Dr Christopher Tufton’s actions “indirectly” influenced the health ministry’s engagement of a marketing firm of his friend that resulted in the entity being awarded contracts of just under $80 million, an investigative report has found.

Six of the 15 contracts – 14 issued by the Ministry of Health and Wellness and one by the National Family Planning Board – were done in an “irregular” manner and “contrary to the principle of competition”.

The 15 contracts, awarded between 2016 and 2021, were valued at $78,579,522.49.

The findings are contained in a 105-page Integrity Commission investigative report tabled in the House of Representatives yesterday.

Director of Investigations (DI) Kevon Stephenson said that while he saw no evidence to indicate that Tufton was directly involved in the award of a contract to MarketMe totalling $15.8 million – the issue that triggered the probe – he found that the minister’s “actions could reasonably be considered to have indirectly influenced the engagement of MarketMe, which, ultimately, resulted in that entity being awarded contracts of just under $80,000,000”.

Stephenson said his conclusion, which came after a three-year investigation into the matter, was formed on the basis that MarketMe’s unsolicited proposal was discussed with Tufton by its principal, Lyndsey McDonnough, with whom he indicated he had a friendship prior to his appointment as minister of health and wellness.

INTRODUCTION TO THE MINISTRY

Further, Stephenson said it was Tufton who introduced MarketMe, its concept, and McDonnough to his staff at the ministry, indicating that the company should “be involved in all [public relations] matters” related to him.

The director of investigations said the minister, who was appointed to the portfolio in 2016, seemed, based on the evidence, to have been integrally involved in a number of meetings with MarketMe convened to discuss Jamaica Moves, the flagship non-communicable disease response programme of the ministry.

Added to that, Stephenson said he came to the position by Tufton’s own admission that the proposal from MarketMe appeared to fit in with his view on lifestyle and wellness issues and that this would have been recognised by the ministry staff involved in the process.

However, the minister said he gave no directions, instructions, or recommendations concerning the treatment of the proposal but thought he was entitled, as minister, to express his views on policy issues, noting that the officers would, no doubt, have taken into account that fact when treating with the proposal.

However, Stephenson said that although the evidence did not suggest that Tufton directly gave instructions to engage MarketMe as a consultant, it was clear, based on the evidence of [former] Permanent Secretary Dr Kevin Harvey, that he gave directives to hold discussions with MarketMe around its proposal.

Stephenson said the evidence could, to the mind of the reasonable and detached observer, be construed as an indirect instruction to engage the entity by way of contract.

“The DI concludes that there is evidence to support a finding that the actions of Dr Christopher Tufton gave rise to, at its lowest, a perceived conflict of interest and thereby contravened the principles of transparency and good governance.

“In this regard, Dr Tufton in his capacity as minister of health and wellness, and, by extension, a public official in the execution of his public function, appeared to have advanced a private interest, which resulted in a monetary benefit to MarketMe Consulting Limited of which Ms Lyndsey McDonnough is a co-managing director and an individual with whom, at the material time, he had a friendship,” said Stephenson.

At the same time, he said the six aforementioned contracts, which were reported during the second quarter of 2019, were approved and awarded on the same date – May 1, 2019, flagging it as irregular.

A direct contracting procurement methodology was utilised in each instance for the contracts, which totalled $8,252,590.31, Stephenson said.

“The award of six separate contracts on the same date to the same entity, in relation to the same/connected activity/programme could, without more, be construed as an attempt to splinter the contract,” he said.

He pointed to the Government of Jamaica Handbook of Public Sector Procurement Procedures, which describes the splintering or fragmentation of contracts as the deliberate separation of contracts, done specifically to avoid the requirements for competition or approval.

He said the conclusion was premised on the fact that if a single contract had been awarded, the cumulative value would have exceeded the $1.5-million threshold for which the utilisation of the direct contracting procurement methodology would have been appropriate.

Stephenson said exceeding that threshold would have necessitated the utilisation of a competitive procurement methodology.

Stephenson has made several recommendations, including that the health ministry “refrain from the improper use of the direct contracting procurement methodology and ensure that this methodology is utilised only within the parameters of the Public Procurement Act and the attendant regulations, guidelines and circulars”.

Additionally, he wants the health ministry to excise from its procurement practices the award of government contracts based upon the receipt of unsolicited proposals without administering the requisite due diligence.

He said the unsolicited proposal mechanism is a corruption-enabling facility, that if left unchecked, may undermine the integrity and/or credibility of the contract-award process.

kimone.francis@gleanerjm.com

Reactions

Tufton: IC's Market Me probe 'clarifies facts'

Health Minister Dr Christopher Tufton says he "welcomes" the conclusion of the Integrity Commission's investigation, which found that while there were several procurement breaches, he was not directly involved in the award of contracts to MarketMe Consulting Limited.

"The commission’s findings have helped to clarify the facts and put to rest years of speculation, allowing the public to have a clear and accurate understanding of the matter," he said in a statement following the release of report in the House of Representatives yesterday.

Tufton and Lyndsey McDonnough, co-managing director of the company, failed to declare their "friendship" while her company received nearly $80 million across 15 contracts - 14 from the from the health ministry and one from the National Family Planning Board, according to the report.

The contract that triggered the probe involved the award of $15.8 million to MarketMe to implement the Jamaica Moves physical-fitness campaign to raise awareness about non-communicable diseases and encourage Jamaicans to adopt healthier lifestyles.

MarketMe says IC report confirms its integrity and professionalism

Marketing and communications firm MarketMe Consulting Limited says the Integrity Commission’s report on contracts it received from the Ministry of Health and Wellness affirms its "integrity" and "professionalism".

"For over 12 years, MarketMe Consulting Limited has proudly served clients across Jamaica's public and private sectors, always guided by purpose, professionalism, and impact,” the company said in a statement yesterday.

"The report confirms what we have always known, that our work stands on integrity, professionalism, purpose and excellent value for money. With that addressed, we now return to what truly matters: doing great work for the clients and communities we serve,” it added.

It did not comment on any of the specific findings.

The statement came a few hours after the release of the IC's 107-page report detailing the results of a three-year probe into alleged procurement irregularities and conflicts of interest surrounding contracts awarded to MarketMe between 2016 and 2021.

Health ministry promises to strengthen procurement processes

The Ministry of Health and Wellness has committed to enhancing its fiduciary management systems to support greater transparency in its procurement processes.

The ministry was responding to the findings of a report from the Integrity Commission (IC), tabled in Parliament yesterday following a three-year probe into allegations of procurement irregularities and conflicts of interest surrounding the award of contracts between 2016 and 2021.

In its reaction, the ministry said it recognised the recommendations of the IC and the need to strengthen its procurement processes to ensure greater levels of transparency in order to mitigate the perceptions as defined in the report.

The ministry stressed however that the report determined that there was no malfeasance with regards to the actions of its team.