Tufton, Market Me head failed to declare 'friendship' before nearly $80m in contracts - Integrity Commission

The Integrity Commission says neither Health Minister Dr Christopher Tufton nor Market Me Consulting Limited's co-managing director Lyndsey McDonnough disclosed their "friendship" when her company secured nearly $80 million in government contracts from his ministry.

The finding forms part of a report tabled in Parliament on Tuesday, following a three-year probe into allegations of procurement irregularities and conflicts of interest surrounding the award of contracts between 2016 and 2021.

The investigation found that 15 contracts valued at $78,579,522.49 were awarded to Market Me during the period, with 14 of them issued by the ministry and one by the National Family Planning Board.

Director of Investigation Kevon Stephenson said he saw no evidence to indicate that Tufton was directly involved in the award of a $15.8 million contract to Market Me, the issue that triggered the probe.

That contract was used to implement the Jamaica Moves physical-fitness campaign to raise awareness about non-communicable diseases and encourage Jamaicans to adopt healthier lifestyles.

However, Stephenson criticised Tufton for not disclosing his relationship with McDonnough, especially after ministry officials confirmed that Tufton introduced Market Me.

"Neither Dr Tufton nor McDonnough made formal declarations of conflict as required under the rules governing conflict of interest and broader governance best practice. Whilst others may have known of the connection between the parties (Dr Tufton and McDonnough and/or McDonnough and Market Me), they (Dr Tufton and McDonnough) both had a responsibility to have made formal declarations of conflict at the appropriate times and recuse themselves from any involvement which could be deemed or perceived to be a conflict of interest," the DI said.

The report said the minister “appeared to have advanced a private interest which resulted in a monetary benefit to Market Me Consulting Limited,” and that his introduction of the company and its principals to ministry officials “gave rise to, at its lowest, a perceived conflict of interest and thereby contravened the principles of transparency and good governance.”

According to the report, Dr Tufton had introduced Market Me’s co-managing director, McDonnough, and the company’s proposal to his team shortly after taking office in March 2016.

He told investigators that he and McDonnough had been friends since 2011 through a running club.

“I have a personal relationship/friendship with McDonnough… I do not have a business relationship with Ms McDonnough except in so far as the company in which she is a principal (Market Me Consulting Limited) has had contracts with the Ministry of Health and Wellness. Miss McDonnough has also done work for me in my constituency on a voluntary and professional basis,” the report quoted Dr Tufton as saying.

The DI found that Tufton’s statements to staff suggesting that Market Me “be involved in all PR matters related to the Office of the Minister” could be reasonably interpreted “to have indirectly influenced the engagement of Market Me.”

Tufton was also asked to address allegations of the existence of a personal and romantic relationship between McDonnough and himself.

“I have already provided information regarding the circumstances under which I met Ms McDonnough and the nature of my friendship with her sufficient for you to conduct your investigations and to assess the issues that may arise in the course of that process," he told the DI.

McDonnough, who also served briefly on the board of the National Health Fund (NHF), was found to have acted “wholly inappropriately and irregularly” by attending a January 2017 meeting where the Jamaica Moves programme was discussed.

The Director of Investigation said her presence exposed her to “valuable information” on a programme in which she had a financial interest.

The report noted that McDonnough indicated that she did not “…have the benefit of knowledge of the exact date of the disclosure, however, all named individuals had knowledge by way of prior engagement, personal, business or otherwise, and as such, is unlikely to claim they were unaware of my affiliation with Market Me and my position as a Marketing Consultant.”

The DI concluded that the ministry also failed to report at least two Market Me contracts - valued at $15.8 million and $38.9 million - to the Commission’s Quarterly Contract Award database as required under the Integrity Commission Act and the Contractor General Act.

The DI found that all 14 contracts with the ministry were awarded using the direct contracting method.

He said two of the contracts exceeded $1.5 million in value, which "amounts to a breach in the [finance] ministry's circular on direct contracting which limits such contracts to $1.5 million".

Three contracts described as “reimbursements” to the firm were also deemed inappropriate.

Despite identifying the breaches and governance failures, the report said evidentiary gaps prevented referral of the matter to the Director of Corruption Prosecution.

However, it recommended that the matter be referred to the Speaker of the House of Representatives for attention, given the conflict-of-interest concerns.

Stephenson also urged the ministry to strengthen its procurement systems, end the improper use of direct contracting, and ensure that all officials strictly adhere to public procurement and integrity laws.

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