Measures in place to prevent fraud

TOBAGO House of Assembly (THA) Chief Administrator Raye Sandy says measures have been implemented to prevent a recurrence of the missing $10 million related to a payment to airline Virgin Atlantic.

He was speaking yesterday as the Public Administration and Appropriation Committee (PAAC) met with THA officials at the Parliament building, Port of Spain.

PAAC member Wade Mark asked if the THA had a fraud policy and Sandy said they did not but when fraud was found it was reported to the police.

“We don’t tolerate fraud in any form or fashion at the THA.”

Mark stressed all organisations should have a fraud policy and Sandy replied within six months a fraud policy can be implemented.

Sandy reported he was aware of three fraud matters which had been referred to the police including the $10 million at the Division of Tourism which went into the wrong account, “ghost workers” at the Office of the Chief Secretary, and fraudulent activities at Licensing Office.

In July 2017, $8.8 million for Virgin Atlantic Airways to help secure flights by the airline to Tobago, was missing, reportedly wired to a wrong account, with the airline saying it never received the money. Between July and August, a US$6,500 wire transfer for a Miami-based consulting firm was also reportedly re-routed to a bank in the UK, and that a further $1.6 million, intended for agents in Miami for cruise business, was also reportedly sent to a wrong bank account.

Mark asked for an update on the case and Sandy said administrative action was taken, someone was suspended and charges laid. He further reported one officer was cleared of any wrongdoing and was back in the public service while two officers were no longer with the service.

He said the Fraud Squad was still investigating and officials were still to get back to the THA.

He also asked if Virgin Atlantic had been paid and Sandy confirmed the airline was paid.

Mark then asked what concrete measures had been put in place to prevent this type of incident from happening again. Sandy said the Finance Ministry’s Central Audit Committee came into the THA and did a thorough analysis.

He said the committee produced a comprehensive report with a number of recommendations which were implemented. He also said in-house measures were taken including that e-mailed payment invoices would no longer be accepted but only original invoices.

“We have put a number of things in place to ensure what happened then will not happen again.”

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"Measures in place to prevent fraud"

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