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2018 Auditor General Report – A Tale of the Same Woes

The blogmaster feels an infinity for the Auditor General of Barbados. For many years we have regurgitated a similar message, the need for transparency to how we do business. Some ask what has Barbados Underground blog been able to achieve in its 12 years of existence? The blogmaster responds by saying what has the Auditor General been able to achieve in the decades of that office existence?

The blogmaster is motivated by doing what any civic minded citizen should be minded to do. If the result is that it makes a difference then he will smile, wider. The smile will always be there because a civic minded son or daughter of the soil will always smile when they commit unconditionally to“the cause that lacks assistance, the wrong that needs resistance, for the future in the distance, and the good that we can do”is realised.

Here is the 2018 Auditor General report for those who missed it., The message is the same as it was last year and the many years before. Here is what we also know, it mattered not that the Barbados Labour Party or the Democratic Labour Party were in office. It mattered not that Barbadians are considered a well educated people.

In the 2018 report the Auditor General rapped this new government on the knuckles about the lack of transparency surrounding the restructuring exercise. There is a note about unauthorized spending by the Barbados Police Force. The Central Bank of Barbados and the National Insurance Scheme (NIS) were fingered for being behind in the preparation of audited financial statements. Congratulations to the Enterprise Growth Fund, Financial Services Commission, Grantley Adams International Airport and FAir Trading Commission for doing their jobs by declaring current audited financial statements.

Screenshot 2019-07-02 at 04.40.11

190 responses to “2018 Auditor General Report – A Tale of the Same Woes”

  1. John A Avatar
    John A

    @ Hal

    No that soca thing takes nuff dancing and movementations! Don’t go there you know how hard it is to get an ambulance bout here. In the meantime all 3 of we on the ground flapping like flounders on dry land! No no, we doing a nice slow social commentary at the 4pm show somewhere close to the hospital. Oh and for the record I mean the QEH not no private establishment please!

  2. David Avatar
    David

    @John A

    Both parties have used the PAC for political gains only. The blogmaster is optimistic Senator Caswell will not be silent if Atherley is inclined to trod the same path.

  3. John A Avatar
    John A

    @David.

    I am hopeful as I don’t see Senator Caswell as being afraid to let it fly should the need arise. I doubt it will get any further though other than public enlightenment. Having said that even if that was all that occurred, it would be a welcome change none the less.

  4. Hal Austin Avatar
    Hal Austin

    @ John A
    I want the nurses and doctors at QEH to know I am their biggest fan. If I run out of breath just put me to sit down. I will be OK. If David BU is the QEH doctor I want to go private.

  5. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU

    I hope that your optimism bears good fruit. This country is at the cross roads financially ,economically and socially. We need to stop the leaks. The solutions are so obvious and so simple; but we go on an expedition to try the esoteric.

  6. David Avatar
    David

    @Vincent

    The political directorate has become past masters in the art of equivocation.

  7. John A Avatar
    John A

    @ Vincent

    @ David.

    The problem goes further in that all entities like the PAC and AUDITOR General’s office can do is identify wrong doing. Neither have the power to pursue action. So if we want to see change we must first give these entities the teeth to pursue the interest of the state.

    Of course don’t bet the farm on that happening.

  8. David Avatar
    David

    @John A

    Therein lies the irony. The AG and PAC are legislated to report to parliament, our highest office in the land responsible for governance.

    Enough said!

    >

  9. TheOGazerts Avatar
    TheOGazerts

    “. I have to tell you I have the greatest of respect for the auditor general as a lesser man would or resigned years ago.”

    Sometimes I wonder if we should praise or if we should condemn.

    When we visit the circus we know what the lion tamers, acrobats, trapeze artists, clowns, jugglers, etc. will do.
    What a show it would be if the lion tamer started to juggle and the juggler breathed fire; if everyone departed from their assigned task.. It would the show that everyone talked about.

    Perhaps, more would have been accomplished if the AG had resigned. A ruckus would have been raised and the stench of corruption would have permeated the whole place. So far we have no evidence that the AG reports changed anything. We simply went through the motions of having accountability in the system.

    Sisyphus was cursed by the Gods to repeat his circuitous and unending task. The AG had no such curse.

  10. John A Avatar
    John A

    @theogazerts

    Regrettably under our current laws he can go no further than file his report to Parliament. The relevant ministers, AG and PM are the ones to take it further.

  11. TheOGazerts Avatar
    TheOGazerts

    What if he resigned……
    What if there was a checkbox somewhere with a line for the AG report?
    What if delivery of the AG report was ticked off as a success – the system of checks and balances is working?

    I traveled in a car where the air conditioner is broken but the fan continued to work. Because of a working fan, it took some time to realize that my ac was broken. If the fan had stopped working. I would have diagnosed and corrected the problem earlier.

    I am here trying to figure out which is the better … resignation or continued delivery of the report.

    (I must add that the AG\ did an excellent job in documenting where the system was broken)

  12. John A Avatar
    John A

    @The0gazerts

    You would prefer dive in the sea at a beach and be attacked by sharks or be warned first by a sign saying “SHARKS DON’T SWIM”?

    All the AG can do year after year is post the sign. In the meantime the sharks making us ring with bites!

  13. TheOGazerts Avatar
    TheOGazerts

    Very Good 🙂
    Safe swimming

  14. fortyacresandamule Avatar
    fortyacresandamule

    @David. Off topic. Just curious, whatever happen to that political scientist fella, Braithwate, PHD ? Is he now feeding at the trough seeing that his party is in now in power?

  15. David Avatar
    David

    @fortyacres

    He has been keeping a low profile posting the odd comment to fb.

  16. Enuff Avatar
    Enuff

    Many of the BU regulars remind me of people I come across in my job–usually privileged, oppose everything and are “experts” in every sphere. They bore me, and the bloggers here as well. I repeat, the biggest tiefs are here on BU and elsewhere on social media preaching honesty and integrity. 😴😴

  17. Mariposa Avatar
    Mariposa

    Caswell speaks about corruption

    https://m.facebook.com/story.php?story_fbid=2372661926089778&id=2357855800903724&sfnsn=mo

  18. Artax Avatar
    Artax

    “Caswell speaks about corruption…”

    “Well… looka muh crosses fuh muh today doah, nuh.”

    Is this the same Caswell you take pleasure in cussing?

    Are you not ashamed to make any references to what he says?

  19. Artax Avatar
    Artax

    John A

    I’m trying to understand.

    What difference would it make if the current Auditor General resigns?

    Would not another AG be appointed………and in the absence of any fundamental changes to the governance system, the status quo would remain the same?

    If we were to insist on holding heads of departments, accounting officers and permanent secretaries responsible for these financial infelicities, perhaps then the system would see some significant changes.

  20. John A Avatar
    John A

    @Artax

    Yes a new AG would be faced with the same challenges until such time as laws were enacted to allow him to pursue matters in collaboration with the DPP.

    What I can tell you is that this AG produces his reports on time and is not afraid to publish his findings without bias. He has no problem calling out either the Bs or Ds, as his reports have shown over the years. His criticism of both parties has been balanced in my opinion to date. If he is partial to one party there is no such evidence of this in his reports.

    Would his replacement do the same if he resigned out of frustration? Or would his replacement be a party loyal who would tow the line quietly and not make waves? Would he adopt the attitude of I can’t change it so I done fighting it?

    I think this is one of those cases of you know what you got but you ain’t know what you might get. As a result for the reasons outlined above I would like to see this AG remain, as I already have to put up with more than enough misguided statements from others in the public arena.

  21. TheOGazerts Avatar
    TheOGazerts

    t accept and understand the argument. I can see the negatives associated with a resignation. We have reams of documentation, but the powers that be have not made an changes..

    Let me change my statement to a question – Is a continuing exercise in futility the only option that is open to us?
    ————————————–xxx——————————
    Watching Haiti fight against Mexico?

  22. Mariposa Avatar
    Mariposa

    Is it strange that when Caswell was crticizing past govt that David never miss a beat in highlighting Caswell uttereancesc
    However as Senator Caswell lambast present govt failures David becomes muted
    Anyhow David yard fowl feathers continue to take flight for all to see

  23. William Skinner Avatar
    William Skinner

    For the record:
    Caswell once wrote on BU that he had no interest in being “elected” or “selected” to any political office.
    I don’t know if he was “elected” or “selected”; I don’t even know if senator is a political office.
    I think he needs to explain this to his brothers and sisters on BU ………..
    That being said, he so far has been a breath of fresh air in national discourse.
    We now hope that the cool aid drinkers will switch to water when it’s available . Some may even die of thirst .

  24. David Avatar
    David

    Barbados Water Authority

    4.54
    The Barbados Water Authority (BWA) was established by the Barbados
    Water Authority Act 1980 -42 to take over the functions, rights and
    liabilities of the Waterworks Department on the “appointed day”, which is regarded as 1stApril 1981.

    4.55
    The BWA reported that the audit sof the accounts for the financial years ended March 2015 to 2018 were outstanding.

    One can close eyes, scroll randomly and not be surprised at the findings of the AG report. How did government approve a significant financial commitment to spend million on a new headquarters and audited financials outstanding from 2015?

  25. Tron Avatar
    Tron

    Our beloved Prime Minister is starting her triumphal march. Now Moody´s has also confirmed the policy of the government. I can hardly hide my tears of joy.

    20 more upgrades to go and we are out of the woods.

  26. Mariposa Avatar
    Mariposa

    All upgrades translate to mire pain and suffering for the people
    Go figure while you shed your tears of joy for the IMF while the poor and lowly can expect more poverty and standing on longer bread lines begging govt for assistance

  27. John A Avatar
    John A

    @David

    So this is another classic example with the BWA or operating in the blind. Without up to date financials you implement a sewage tax to be collected by the said BWA of say $50. How do we know in the absence of financials that shouldn’t of been $30 or maybe $70?

  28. David Avatar
    David

    @John A

    The former MoF has held to the view that internal MIS reports are enough to support decision making. Go figure.

  29. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU at 8:49 AM

    Management decisions are made on Management Accounts. These are internal to the entity.

    The Audited Financial Statements are for Public consumption and indicate that the entity is being managed according to internationally accepted standards.

    Management and Cost Accounts are more detailed. The BOD has a responsibility to interrogate these monthly reports.

    There are several reasons why Audited Accounts are not up – to-date. The entities need to inform the public. By law they should be presented within a fixed period after the end of the fiscal year, usually 3 months.

  30. Vincent Codrington Avatar
    Vincent Codrington

    Is this another case where GoB Departments and SOEs have grown exponentially ;but the A. G’s staff has grown at a a considerably slower rate or not at all?

  31. David Avatar
    David

    @Vincent

    The importance of audited financials is understood. The view shared by Sinckler who was referring to the missing NIS audited financials at the time may suggest why we find ourselves in the current state of financial indiscipline.

  32. Vincent Codrington Avatar
    Vincent Codrington

    @ David Bu at1:30 PM

    I am not sure how to interpret your submission above. Is it OK for the AG’s dept to be understaffed and tax payers accept late/ no audited reports?

  33. Artax Avatar
    Artax

    “Is this another case where GoB Departments and SOEs have grown exponentially ;but the A. G’s staff has grown at a a considerably slower rate or not at all?”

    Mr. Codrington

    I’ll refer you to the Introductory Comments of the “Report of the Audit General 2018.”

    “For years I have been complaining of a shortage of staff and there is little evidence that this matter is being addressed. This shortage will continue to impact both the timely output and, ultimately, the quality of work even if new officers are provided, they will have to trained before they can make a meaningful contribution to the Office.”

    With a shortage of staff and several SOEs tardy in preparing and submitting their financial statements for audit within the specified time, under these circumstances, Mr. Trotman’s department must be commended for performing remarkable job over the years.

  34. John A Avatar
    John A

    @ Vincent.

    Don’t forget it was the same Sinkler and Sukoo that stated ” there is nothing to worry about the NIS is sound.” How anyone could make that statement in the absence of years of audited financials baffles me.

    But this is standard operating procedure for all parties, as just last week the bossman in charge of the NIS investments said ” The dept restructuring will not affect us too badly as we have other sound investments.” This statement was made also in the absence of years of audited financials.

    What this tells me is both past and present governments spout verbal excrement based on a guess, even when it comes to “the peoples life line.” Not my words that’s what the NIS claims to be.

  35. John A Avatar
    John A

    @ David

    I doubt the former MOF could of added 3 rows of numbers without a calculator so nothing he says on finance would surprise me. There is no way anyone can declare an entity sound without seeing up to date audited financials. I am not talking here of in-house financials either.

  36. Hants Avatar
    Hants

    The Queen Elizabeth Hospital (QEH) Blood Bank is issuing an urgent appeal for O negative and A negative blood donations.

    http://www.nationnews.com/nationnews/news/240550/qeh-blood-donations

  37. Hal Austin Avatar
    Hal Austin

    @ John A

    Sinckler has an MA in an economic subject . As to the NIS, who was chairman of the fund? Does he not got a PhD in mathematics? What was/is the relationship between the fund and Oppenheimer?

  38. John A Avatar
    John A

    @Hal

    Well if I was him I would have to ask as we say here ” where de learning went.” Lol

    Don’t forget one chairman resigned and said count me out. As I said before most of these board appointees are party faithfuls so they just go along for ride anyhow. The thing is when the head of your investments can say a cut of the magnitude the NIS got on their $3b in investment is not that major, someone should remind him ” boss those bonds make up nearly half of our total portfolio.”

    But not a mouse squeaked.

  39. David Avatar
    David

    @Vincent

    Why would successive governments give the AG more staff when the evidence show there was and never will be an intent to act on his reports whenever they are laid in parliament?

  40. John A Avatar
    John A

    @ Hal

    I have not seen the Oppenheimer returns listed separately nor their fees. Their results is usually buried in the total fund return from what I can remember.

    I however speak subject to correction.

  41. Hal Austin Avatar
    Hal Austin

    @ John A

    It is a mystery. Not just fees, but performance. A few years ago Oppenheimer was claiming returns of about 6-7 per cent, outperforming the S&P at the time. High returns in a low interest environment means high risk investments. If that is what they are doing the public should be told.

  42. John A Avatar
    John A

    @Hal

    For all we know seeing the paper locally is yielding next to nothing, they may even have been advised to up the risk to try and recover some of the yield lost locally. Thing is though if on half your asset base the yield drops from say 6% to 2% that means to come out with the same 6% overall, the other half must now jump from 6% to 10%. This without venturing into highly risky investments would basically be impossible in today’s market.

    I honestly doubt the fund right now after the restructuring, is even returning enough to surpass inflation. The problem is Sinkler s paper represents just too big a percentage of their total portfolio For The fund to make any real gains now..

  43. David Avatar
    David

    @John A

    Is the latest NIS Acturarial Review overdue?

  44. John A Avatar
    John A

    @David

    I think that was “postponed” in the hope the financials would first be brought up to date.

  45. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU

    Please refer to Artax’s intervention at 2:12 PM. He has confirmed my suggestion that the A G’s Dept is understaffed.

    I do not understand the source of your assertion that the AG’s queries go unanswered in all Depts and SOEs he has audited. In any case the Head of the Civil Service and MoF are required to provide the staff not Parliament.

    @ John A

    You are belabouring this idea that business decisions are made on annual audited Financial Statements. They cannot be . And they are not.

  46. John A Avatar
    John A

    @ David.

    The fund is in deep doo doo all around mainly because of how it has its” valued assets”booked. For Instance I would bet you the old building opposite the market is still booked at a price way in excess of its current market value, especially in light of the fact it was vacated as a sick building.

    Then we have other fine investments they were bullied into like the grotto. Built at a cost of over twice the market value. Want to bet the fund does not have that booked at building cost instead of at today s market value?

    Alas we move on to the buildings like BAOBO Towers currently being rented by government. Are the rents up to date? Is the rent being paid a fair return on investment for the fund? What is the ROI being received for the NIS on these “strong assets”? If according to the bossman of NIS they will bail the fund out of the fact that practically half their paper assets were decimated in the restructuring, are you trying to tell us these ” amazing investments ” are earning in excess of 10% for the fund annually after maintenance and general expenses?

    All questions we will probably never get the answers to.

    I mean when he said “strong assets” he could of meant structurally sound cause we know there was nuff “Steal in” them too.😂

  47. John A Avatar
    John A

    @ Vincent

    So in the absent of accurate up to date financial information how are they made then?

  48. John A Avatar
    John A

    Absence not absent

  49. John A Avatar
    John A

    @ Vincent.

    If You could tell me a way of knowing how much money I would need to run a business on next year without factoring in my accurate receivables and payables at year end,well tell me where I could buy a pair of them glasses.

    Also give me the name of the bank manager that I could present my figures to for an extended overdraft without presenting him up to date audited financials and a budgeted income statement for next year that does not take into account payables and receivable.

    I only need the surname and cell number and I would not say who gave me it!

  50. David Avatar
    David

    @Vincent

    If you are happy, no problem.

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