Conflict of interest cloud over Green’s pick to RADA board

Director of investigations at the Integrity Commission, Kevon Stephenson, has recommended that the minister of agriculture and fisheries give serious consideration to removing Olive Downer Walsh from the board of directors of the Rural Agricultural Development Authority (RADA), as her position posed a potential or perceived conflict of interest.

However, checks by The Gleaner have found that Downer Walsh is no longer a member of the current board of RADA.

The recommendation is contained in an investigative report into allegations of conflict of interest in the appointment of Downer Walsh to the board of RADA that was tabled in Parliament on Tuesday.

Stephenson said his recommendation took into consideration the risk posed generally by Downer Walsh’s then concurrent positions on the board and at Hardware & Lumber (H&L) Limited and the commercial relationship between the two entities.

Additionally, the director of investigations said that the existence of an incentive clause in Downer Walsh’s employment contract was an aggravating factor that militated against her continued presence on the board.

During its probe, the Integrity Commission found that on two occasions, Downer Walsh made declarations to RADA indicating that she was employed by H&L Limited in the capacity of deputy chief executive officer.

Between January 2017 and January 2021, RADA awarded 14 contracts to H&L Limited, valuing $135,975,658.24.

Stephenson reported that three of the 14 contracts were endorsed by Downer Walsh in her capacity as deputy chief executive officer on behalf of H&L Limited.

In his report to Parliament, the director of investigations said that the appointment of Downer Walsh to the board of RADA constituted a conflict of interest, within the meaning of Section 4.1 of the Government of Jamaica Policy Guidelines for the Nomination, Selection and Appointment of the Boards of Public Bodies.

Downer Walsh, who declined comment at this time when contacted by The Gleaner on Tuesday, was first appointed to the board of RADA on April 25, 2016, and reappointed on June 11, 2018, and November 16, 2020.

According to Stephenson, based on representations made by Karla Nembhard, human resource manager, H&L Limited, he has concluded that Downer Walsh was, at the material time, employed to the entity in the capacity of deputy chief executive officer of H&L Limited and general manager of H&L Agro.

The director of investigations further concludes that the potential conflict of interest involved an issue that was “... material to the core business of the [public] entity ...” given that H&L Limited is a major operator within the local agricultural industry and that RADA’s core functions include driving the development of the agricultural sector through the provision of agricultural inputs to key stakeholders.

“The volume and value of contracts awarded to H&L Limited by RADA during the referenced period further substantiate the intersection between the core businesses of the two entities,” Stephenson added.

The anti-corruption body also argues that the reappointment of Downer Walsh to the board of RADA in 2020 by then Agriculture Minister Floyd Green “failed to apply the considerations outlined in Section 4.2.1 of the Government of Jamaica Policy Guidelines for the Nomination, Selection and Appointment of the Boards of Public Bodies with respect to the appointment of individuals to the Boards of public bodies”.

Green is reported to have told the commission that “... based on her background in agriculture, Mrs Olive Downer Walsh fulfils the requirements of the RADA Act”.

Further, Green reportedly said: “In light of the new requirements stipulated by Cabinet pertaining to the composition of public boards, namely the inclusion of 30 per cent females and retention of one-third previous board members, and her experience in agriculture, she would have been deemed suitably qualified for reappointment.”

But Stephenson rejected Green’s rationale in light of the conflict-of-interest implications raised by Downer Walsh’s concurrent professional relationship with RADA and H&L Limited.

“The DI’s conclusion is made within the context of the established commercial relationship between the two entities, as well as Mrs Downer Walsh’s direct involvement in, and proximity to, the preparation of tender documents and the execution of contracts between both entities, in her capacity as deputy chief executive officer of H&L Limited.”

Stephenson said that Downer Walsh’s involvement created the perception that RADA’s procurement processes were less than transparent, which may adversely impact public confidence in the operations of the Authority.

He also indicated that the declaration of a conflict and recusal from matters associated with the State-run agricultural body was insufficient to guard against the potential conflict of interest.

Stephenson said his conclusion is grounded on the fact that after her appointment to the board, Downer Walsh engaged RADA regarding procurement activities and/or opportunities on behalf of H&L Limited and correspondence was addressed directly to her by RADA in her capacity as chief executive officer of H&L Limited regarding the said activities and/or opportunities.

“This is antithetical to the tenets of fairness, integrity and transparency in public procurement,” said the director of investigations.

He indicated that Downer Walsh’s membership on the board gave her access to privileged information and sufficient proximity to influence decisions that indirectly impact on opportunities available to H&L.

“At its lowest, this constitutes an actual conflict of interest,” he said.

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