$4.7m cheque missing from San Juan/Laventille corp

A $4.7 million missing cheque from San Juan/Laventille Regional Corporation and six $50,000 cheques removed by an accountant at the Diego Martin Regional Corporation were some of the instances of fraud reported during a Joint Select Committee meeting

The JSC met with Local Government Ministry officials and representatives of four regional corporations in Parliament on Wednesday.

San Juan/Laventille Regional Corporation CEO Dianne Lakhan reported that a $4.7 million cheque went missing in August 2017 and this was being investigated by the Fraud Squad. Corporation chairman Anthony Roberts said it is believed there was some kind of internal involvement.

He said the council resolved to do a restructuring of the accounts division and included the new procurement legislation as a guide. He also reported the council established an internal audit department and asset management system which will assist in computerising the operations of the different departments. He said the council resolved to do a forensic audit in other departments throughout the corporation.

“Because we still believe some nonsense is taking place at different levels of the corporation.”

JSC member Ramona Ramdial said from the submissions of the Diego Martin Regional Corporation there were several instances of alleged financial crimes or financial improprieties perpetrated against the corporation. Corporation financial assistant Ken Calliste said there were six items of fraudulent activities including six cheques of about $50,000 each removed from the file by the then accountant in 2013 and paid to people who did not supply goods or services to the corporation.

“That matter is attracting the attention of the TTPS right now.”

He said other issues were receipt books for the collection of fees for burial given to the cemetery keeper who is not a corporation employee and in 2016 the provider of a tent city shelter was paid up front but did not supply all the units. On the second matter Calliste said most of the items were being brought in from the US, and the vendor somehow convinced the corporation to advance payment to him for the items, but some were not the correct ones.

JSC member Khadijah Ameen said the corporation broke its own rules by making advance payments and taxpayers’ money has gone down the drain.

She stressed the vendor should not be blamed, but the officers responsible.

“For those of us who advocate independence for corporations, when we hear things like this, it puts serious spokes in the wheel.”

Diego Martin Regional Corporation CEO Shivastri Ramawadh said the corporation does not have a fraud policy in place and this will have to be taken to the council to be drafted for approval.

She also reported that in October 2016 employment slips were given to 300 people who were not employed with the corporation and with no end date but the phrase “until further notice.”

The matter was being investigated by the Professional Standards Bureau. Diego Martin Regional Corporation Chairman Susan Hong said the officer involved was transferred to Local Government Ministry head office at Kent House.

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