AG highlights lack of update on surcharge recommendations against senior public officials

Auditor General Pamela Monroe Ellis has said her department has received no feedback from Financial Secretary Darlene Morrison in relation to two recommendations for surcharge action to be taken against four senior public officials.

In her annual report tabled in Parliament this afternoon, Monroe Ellis said that the financial secretary has not responded to her recommendations made in June and August 2021, for surcharge action against the head of the Firearm Licensing Authority (FLA) Shane Dalling and the director of finance at the regulatory body.

She also said Morrison is yet to inform her department on action taken regarding the surcharge recommendation against Executive Director of the Overseas Examination Commission, Hector Stephenson, and the branch manager of the western office of the entity.

A surcharge is a provision of the Financial Administration and Audit (FAA) Act, which allows for the recovery of monies lost or the value of the loss of property or other assets that have been destroyed or stolen because of negligence on the part of public officers.

In the case of the FLA, the auditor general wants a little more than $8.3 million to be recovered while at the Overseas Examination Commission, the sum is $1.6 million.

The report indicated that the FLA terminated the employment contracts of four employees in 2017 and gave them notice pay over than the amounts ordinarily due.

According to the report, the former employees were paid gratuity, however, there was no evidence that a performance evaluation was conducted to justify the amounts paid as required by the employment contracts and Circular Number 15, dated May 8, 2012, issued by the Ministry of Finance and the Public Service.

In addition, the FLA also paid another former employee notice pay above the contracted sum and gratuity without any evidence of a performance evaluation after the officer resigned in October 2017, giving three months' notice.

However, the FLA accepted the officer's resignation with immediate effect and paid him three months' travelling allowance and gratuity up to January 19, 2018, despite the officer's contract only providing for one month's notice pay and gratuity based on positive performance evaluations after two years.

The Surcharge Review Committee (SRC) in the auditor general's department reviewed all documents submitted and noted that separation payments to the five former FLA employees were not in keeping with Circular Number 15 and resulted in financial loss to the Government.

“The SRC concluded that the case under review is a surchargeable offence,” the report read.

Monroe Ellis recommended that the matter be reported to the Financial Secretary, in accordance with Section 2.6.3 of the Financial Administration and Audit Act (FAA Act) Financial Instructions for the recovery of the value of loss in accordance with Section 20 of the FAA Act to all for the recovery of sums lost.

In the case of the Overseas Examination Commission, the surcharge matter arose out of financial losses as a result of the embezzlement of funds collected by a cashier on behalf of the entity's western office located at 18 Queen's Drive in St James.

The auditor general said that the commission did not implement adequate controls at its western office to prevent and detect fraud.

The officer defrauded the commission of $543,745.

This resulted in late fees of $1,169,420 paid by the entity, bringing the total loss to the government to $1,713,165.

According to Monroe Ellis, the officers alleged to be responsible for the deficiency/loss are the executive director of the commission and the branch manager for its western office.

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