[UPDATED] Cox: Police probing UNC card programme

THE police are investigating a prepaid card programme introduced by the former UNC-led People's Partnership (PP) government for possible fraud and corruption.

Social Development and Family Services Minister Donna Cox made this disclosure in her contribution to the budget debate in the House of Representatives on Tuesday.

Describing the matter as "deeply troubling," Cox said it had its genesis in a 2012 Cabinet minute.

She quoted section 4(a) of that minute which "agreed to the provision of a one-off grant of 510.00 to a total of 2,050 needy children, comprising 50 children to be identified by each of the 41 members of Parliament for the purchase of school supplies for the school term commencing September 3, 2012."

Cox said section 4 (b) of the minute allowed for an additional 250 one-off grants of $510 "for the allocation to very needy children including those identified from within the databases of the Ministry of the People and Social Development."

That ministry became the Social Development and Family Services Ministry when the PNM assumed office in September 2015.

Cox said the ministry investigated the cards.

"The application form which accompanied the...cards stated that the cards could load up to a staggering $30,000 per day. This simple arithmetic reveals an alarming fact."

Cox said that fact was 2,300 cards multiplied by $30,000 per day equals a potential daily sum of $69,000,000 that could have been laundered through this programme

"This isn't just a financial figure; it is a moral and ethical concern and a massive red flag for financial impropriety. The sheer volume of funds that can flow through these cards is astounding."

Cox said the matter raised several lingering questions which she would not allow to "go to the wind."

One of those questions, she continued, was whether it was an avenue for money launderers with the cards being able to move illicit funds discreetly and without detection.

As Laventille West/Morvant MP in 2012, Cox said neither she nor any of the then PNM MPs were aware of the programme.

"I want you to note the cart before the horse in this story. The cards were left in the care of the Social Welfare Division (of the ministry) or constituency office along with the application forms, for beneficiaries who were already named."

Cox asked how could something be created and sent to a beneficiary who had yet to apply.

"This raises concerns about transparency and informed consent."

Cox said a similar scheme was executed in 2014 and was also under investigation.

Recalling that a general election took place the following year, Cox said, "By then the PP government, Cabinet went on to agree on July 2015 to provide 4,000 prepaid cards repeating the same scheme as was done in 2012 and 2014. "

She told MPs, "As I stand here making my contribution, there has already been collaboration with the police on the issue of potential fraud and money laundering activities that may have taken place during the implementation of this master card fiasco."

Cox indicated that in 2012, Chaguanas East MP Vandana Mohit was employed at the ministry.

Government, she continued, could not ignore the potential implications of such a ruse.

"Only this week, five persons have been charged with conspiracy to defraud the Government of $900,000, almost a million dollars for the purpose of operating a home for older persons."

Cox said one of those people was a former ministry employee.

She reminded MPs that not all crimes "occur at the end of the barrel of a gun."

Cox said her ministry had been collaborating with the police to combat instances where error, fraud and corruption within the ministry has resulted in relief not reaching the most vulnerable in society.

The ministry's investigations and compliance unit (ICU) has identified 123 cases of fraud from 2021 to 2023. These cases involved cashing of large cheques at supermarkets, using identical birth certificates to access grants, receiving grants while residing abroad, and the emergence of ghost beneficiaries on the payroll.

Cox was happy to report that in a case where people did not receive benefits due to errors, the ICU was able to restore benefits for 90 per cent of the beneficiaries.

This story has been adjusted to include additional details. See original post below.

SOCIAL Development and Family Services Minister Donna Cox said the police are investigating a programme launched under the former UNC-led People's Partnership (PP) coalition government for possible fraud and corruption.

Cox made this disclosure in her contribution to the budget debate in the House of Representatives on Tuesday.

Referring to a September 2012 cabinet note, Cox said this programme allowed for the production of 2,300 reloadable prepaid master cards for a one-time grant payment of $510, starting on September 3, 2012.

She indicated what the ministry's investigations into this programme discovered.

"The application form which accompanied the master cards stated that the cards could load up to a staggering $30,000 per day. This simple arithmetic reveals an alarming fact: 2,300 cards multiplied by $30,000 per day equals a potential daily sum of $69,000,000 that could have been laundered through this programme."

Cox told MPs, "As I stand here making my contribution, there has already been collaboration with the police on the issue of potential fraud and money laundering activities that may have taken place during the implementation of this master card fiasco."

Later in the sitting, Chaguanas East MP Vandana Mohit said Cox was "heavy on insinuation but low on fact."

Mohit dismissed Cox's statements. She claimed that Cox was justifying any future attempts by Government to reduce relief provided to vulnerable people.

"They (Government) have shut the doors on the disabled. They are coming for your food cards."