Public Finance Act ignored on Port Project- Report
NDP responds-‘Trust us we did nothing wrong!’
Ms Sonia M. Webster, the Virgin Islands’ Auditor General (a constitutional post), in an Audit Report on the controversial Port Development Project which is allegedly in the hands of the United Kingdom appointed Governor William B. McCleary and a House of Assembly select Public Accounts Committee, continues to be the talk of the town.
The Auditor General's Report on the Port Development Project unearthed corruption, conflict of interest, disregard for the laws of the Virgin Islands, unfair practices, undue influence in favor of one developer, disregard for the established tendering process and no one looking out for the interest of the people and tax payers of the Virgin Islands, putting the people at a disadvantage.
After hearing from the Premier Dr. the Honourable D. Orlando Smith in a statement on November 1, 2013 where he claimed to “set the record straight” and saying in effect that the Auditor General Ms Webster had it all wrong and that we must trust him and his government because “I need no greater check and balance than my good conscience and God’s guiding hand!”, now comes another statement from government.
This time the man at the centre of the controversy, the Communications and Works Minister Honourable Mark H. Vanterpool (R4), released his own statement. The November 5, 2013 statement by Minister Vanterpool said he was “forced at this stage, to challenge the authenticity of the Report”. In other words, Hon. Vanterpool, according to the meaning of authenticity, is insinuating that Ms Webster is telling lies to the public and her report cannot be real and truthful.
One of the revelations in the Auditor General Report is that the developer recommended and approved by the NDP Government, the Tortola Pier Park (TTP) Group, had named the BVI Investment Club as its local partner, page 11 (61).
However, the Minister for Communications and Works said in his statement, “let me state categorically here, that Government’s approval of the Project was never based on the involvement of the BVI Investment Club”.
Public Finance Laws broken?
On page 4 (24) of the Report, Ms Webster writes “despite the magnitude of the newly proposed development, examinations of the records do not indicate any comprehensive planning or revised needs analysis to redefine the scope of the project and development of the upland. The provisions of the Public Finance Management Regulations with respect to public procurement were largely ignored”.
After the process was halted by Government on August 12, 2012 in an attempt to comply with the rules and laws, Premier Smith said in his own statement of November 1, 2013 that, “we in fact extended the deadline for those bids beyond the initial deadline, in order to allow more time for bidders to make their submissions”.
However, on page 10 (54) the report stated, “the publications above provided submission period of less than two weeks for a project envisioned to cost $50 million-$75 million. The extended submission date of September 12, 2012 was not found in any of the publications examined. In addition, no evidence was found to support assertions that the tender was also advertised in the Wall Street Journal”.
While the Report clearly documented that government was not following proper practices, the VI was at a grave disadvantage in going with the TTP, and not receiving value for money before the project was stopped and went out to public tender, the Auditor General still raises serious issues during the public tender process.
On page 11 (64) Ms Webster writes “subsequent tendering of the works was performed to satisfy the Public Finance Management Regulations provisions on procurement but in a fashion which did not allow for broad scale participation of other qualifying developers. The highly specific nature of the project requirements created an advantage in favour of the previously selected developer (TPP).”
No conflict of interest- Hon. Vanterpool
While the Auditor General in her Report has not named any Minister of Government who has engaged in conflict of interest issues, she did refer on page 11 (62) ii, to the declarations of interest made publicly in the October 10, 2011 Gazette.
The Auditor writes “the declarations of interest show more than one elected member with shareholding interests in subsidiary companies owned by the BVI Investment Club”.
The same Gazette, Vol. XLV, No 63 2611 (extraordinary) publication listed some 11 companies that Mr Vanterpool declared as having an interest in the capacity of either Director, Manager or Shareholder before the General Elections of November 2011.
They are; 1. LTL Cargo (B.V.I.) Ltd., which provides freight consolidation and shipping services from time to time to various Government Departments and Statutory Bodies including BVI Ports Authority, BVI Electricity Corporation and Social Security Board.
2. K-Mark’s Foods (1996) Limited, which supplies foodstuff and general merchandise from time to time to various Government Departments and Statutory Bodies including BVI Ports Authority, BVI Electricity Corporation and Social Security Board.
3. Caribbean Office Furniture & Systems Limited, which from time to time supplies and installs office furniture and systems to various Government Departments and Statutory Bodies including BVI Ports Authority, BVI Electricity Corporation and Social Security Board.
4. MHL Holdings Limited, which is a Lessee under a Head-Lease from Wickhams Cay Development Authority. MHL rents commercial spaces to tenants.
5. DMV Enterprises Limited, which is a Lessee under a Head-Lease from Wickhams Cay Development Authority. DMV rents commercial space to tenants.
6. Columbus Centre Development Limited, which is a Lessee under a Head-Lease from Wickhams Cay Development Authority. Columbus rents Commercial spaces to tenants.
7. Mount Sage Investment which holds shares in Ocean Conversion
8. Sage Investment which holds shares in Caribbean Cellular Telephone Company.
9. Sage Yacht Harbour Enterprises Ltd., which holds shares in Virgin Gorda Yacht Harbour.
10. Sage Marina Holdings Ltd., which holds shares in Village Cay Marina
11. Lambert Holdings Limited, which holds shares in Greenfield Property Holdings Limited which is party to development agreement with Government for the development of resort property at Lambert Beach.
“I further declare that I received a monthly pension payment from the Government of the Virgin Islands. Dated October 7, 2011(Sgd.) Mark Vanterpool,” the Gazette states.
However, Minister Vanterpool told the public in his statement that “I can publicly declare that approximately one month after the General Elections of 2011, I resigned from being a member of the BVI Investment Club and divested my interest in its investment companies”.
In the Audit Report, one of the recommendations made by Ms Webster is that “all public agencies should apply the highest standards when seeking to engage contractors on public projects. This is particularly so on multi-million dollar projects which bind the Government for the long term. This must include competitive procurement procedures, full transparency and equitable terms. The procurement regulations of the Public Finance Management Act should be adhered to, along with the standards for good practice present in most industries”.
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92 Responses to “Public Finance Act ignored on Port Project- Report”
The process was done right and this will go no place. The port will be built under the NDP government. I never see a bunch of people who want to destroy their country and people like allu..00000, Sam and the rest of you.
the audit followed the law and procedures. You want a lawless land where the powerful can do what they want. The laws are there to protect the public. The process was NOT done right as the audit documents. The same procedure should be afforded the airport and beef island hotel.
It is NDP which thinks it's above the law and can do no wrong.
I for one am shocked to see the amount of money we spent on that greenhouse projects just for white tents! Millions and Millions but no free breakfast for our kids. No properly paved roads. Higher cost to go to St. Thomas and electric bills that are killing us.
Fair exchange is no robbery but for God sakes man Claud is clueless about ports, Al Henly is clueless about ports. Gov't will not listen to the cries of the people. These are hard times for everyone. How many people are out of work? How many more will go home because Long Bay & Bobby's is close down? How many people are being laid off from the banks?
We don't need a do for do attitude, the little we have must be invested wisely to get a return on our dollar. Who will be getting squeezed?
Let's not even talk about the hospital and run away cost.
We will regret the day we build those concrete monstrosities in our lovely harbour. Mark my words.
A Government should act like a Board of Directors for a company in which all that County's Citizens are shareholders. Our Government act like a Board of Directors for their own little special interests groups. That's the problem.
How do we solve it? Separate Executive from Legislature (as it is supposed to be). These Ministers have too much power. Let us elect the Deputy Governer independently and let him/her select the Permanent Secretaries and Directors of Statutory Boards. That way the Ministers cannot meddle in the affairs so directly. And in fact, the Ministers shouldn't even be in the Ministry offices. Leave then in HOA and let the Permanent Secretaries bring whatever they need signed over to them.
A blind man could have seen this was a scam all along. A MAn. arrived and started taking trips all over the glob with his private secretary, even on Valentines day to St. Thomas. Then he started getting rid of and retiring anyone who he think would have stood in his way of corruption.
He quickly got rid of the woman in finance who would not put up with his nonsense. It was a well known fact that while all this was going on he left the P E out of all meeting and decision making for the pt projects. If you can imagine planning major projects without an engineer.
Then they hired Al Henly and tried to retire Creque, the most knowledgeable person in the ports. He was never invited to any meetings with this major ports project.
The head of the computer department heads out the door to avoid corruption and favoritism
This things is all about family, friends and girlfriends;
With this line up what do you expect? MV***** pretends that he does not know what is going on
C***Ce is very bad news for the Virgin Islands
Signed
Anonymous is Watching
I resigned from being a member of the BVI Investment Club and divested my interest in its investment companies”. Who did you divest your shares to? your wife and son? when profit sharing they put thousand of dollars in your acct then when you out of politics you go back for the very shares you divest to spend the very same money you strike the deal with the cuise pier for??
It is very troubling when the Auditor General who takes the files of any government department and do a comprehensive search and reports her findings in a professional way and the Premier and minister of communication will come to the people with rubbish in defense of their corruption fill with lies and to add insult to injury they have glover park here now trying to put a spin on this but we wont fall for this I call on the Governor to take the bull by the horn and reel in these cr**ks who in all intension want for them and their family only at the detriment of us all.
Or else HOW will the public and tax payers get justice when the government is saying the Auditor General is telling untruths? Common sense must prevail in the BVI, then again MAYBE not!!!
The actions of the NDP and some in the Ports in the manner in which they handle this project leaves a lot of questions and now the way M**k and O****o (family) communicate is nothing less than true expression of denial. First world methodology being imitated and adopted with expat speech writers which is different to our culture and resulted with response not selling o the streets of the BVI! It could not have been done any worst; could it? Congratulations to the Auditor General for having the courage to secure the public interest.
Mark. Julian.myron.ronnie.orlando. And uncle ralph need not to be in politics any longer.
I was one who wanted the VIP out and voted the VIP out. But there was no place where there was any proof the any member of the VIP had interest in the company that the government was dealing with in the then Government deals. Now this declaration shows that M>>>> has interest in Ocean Conversation and a part of the BVI Investment Club. This is going to far now!!!!!!! Are we fools? The same Minister now gave Ocean Conversation which was now owed by the Government back to himself (SAGE). you cannot divest interest today and give the public property back to the group that you came out from. firstly it must be maid known who you divested to. this must be giving as you are now in Public office and such declaration is proper because you were/is a part of that group. therefore the only the people's mind can be put to rest is if they know who is holding those shares. the people must insure that with the divestment of shares the Minister's interest does not continue. What a lot of people do is pass on shares to family members and then take it aback at a later stage or receive their benefits stills. In this case to settle the matter we must know now who is holding these shares or there will be no true transparency. Now they will say the Cabinet approved therefore all of them need to show there divestment from the BVI investment club and to who. Yes it is our business as you are holding public office and negotiating on our behalf and in our interest, you cannot wear two hats on one head. This whole thing is getting worst and worst. I will not Vote for the NDP again for sure. this is corruption to the highest degree. And to Dr. Smith you do not have a conscious if you had one you would not have attacked the Chief Auditor and you would resign and give the country to some who can march out corruption. YOU GUYS GOT CAUGHT NOW YOU ARE TRYING TO SPIN IT. WE DO NOT BELIEVE YOU ANY MORE !!!!!!!!!!!!!!!!!
7. Mount Sage Investment which holds shares in Ocean Conversion. The list of conflict of intrest doesnt stop at the cruise pier deal there is this one where the minister >>>>>> give back to himself as a share holder in ocean conversion the WATER PLANT IN BAUGHERS BAY and then to sweetten the deal they paid themself in the name of ocean convertion (11,000,000.00) eleven million dollars when they say the country was broke. HUMMMM I COULD TELL YO HUMMMM.