‘UNACCEPTABLE’

LEADER OF Opposition Business in the Senate, Peter Bunting, has suggested that the Government should stop reappointing board members who preside over agencies and public bodies whose annual reports remain outstanding for years.

In debating the Financial Administration and Audit (Amendment) (N0. 2) Act, 2023 yesterday, to transfer the functions of the Audit Commission to a ministry, department or agency of government, Bunting argued that legislation alone was not sufficient to ensure that good governance is observed by technocrats and board of directors in the public service.

The Audit Commission was established in April 2005 as a body charged with the responsibility for ensuring the continued effectiveness of audit committees.

Bunting told members of the Upper House that while legislative measures have been introduced to improve governance, there remained significant tardiness in terms of compliance with the statutes governing public bodies and government agencies.

He highlighted a few key public bodies that have been delinquent in submitting their annual reports to Cabinet.

“Most of these boards come to Cabinet for review. I think that when you are reappointing persons who have presided over this situation which everyone will agree is unacceptable for extended periods of time, then I think the responsibility then comes to Cabinet to say, ‘no’, we are not going to keep reappointing directors that cannot maintain minimum standards of governance,” he said.

Checks on the Website of the Cabinet Office show that some public bodies and departments of government continue to perform dismally when it comes to the submission of annual reports.

Bunting said that the Jamaica Urban Transit Company Limited (JUTC), which handles billions of dollars and loses billions annually, continues to demonstrate a poor record of submitting annual reports as required by law.

The JUTC projected an operating loss of $11.4 billion for the current financial year.

He said that the last annual report submitted by the state-owned bus company to Cabinet was for 2017/2018.

“That’s five years behind,” said Bunting.

The National Works Agency (NWA), another critical agency of government which spends tens of billions of dollars, did not escape the scrutiny of the Opposition lawmaker who said that the last annual report sent to Cabinet by it was for 2015/2016.

“I don’t think that issue has to be a political issue or a partisan issue, by any standards of good governance this is just unacceptable. We wouldn’t accept it in our private companies … And I don’t think we should accept it here,” he insisted.

Notwithstanding the legislative measures that have been put in place, Bunting charged that “until we start holding the directors, the chairmen and the executive officers accountable then we are not going to get improvement”.

Highlighting yet another pivotal government agency, Bunting said that many commentators in the wake of the 5.6-magnitude earthquake on Monday levelled criticisms at the country’s chief disaster preparedness body for failing to communicate with the public up to some six hours after the tremor.

“When do you think the last annual report for ODPEM (Office of Disaster Preparedness and Emergency Management) went to Cabinet?” Bunting asked.

He said ODPEM sent its last annual report to Cabinet for 2015/2016.

“This is not suggesting a well-managed operation and for agencies that are so critical to the performance of government and to delivering service to the people of Jamaica I think we must do better,” he said.

Businessman and Government Senator Don Wehby agreed with the sentiments expressed by Bunting, noting that the non-submission of annual reports in the private sector would not be tolerated.

“It is unheard of for companies to have accounts five years behind,” Wehby said of the private sector.

He stressed that timely and accurate reporting were the bases of good governance.

“If we are referring to audited accounts ... however where I become very concerned is if the management accounts are significantly behind. If management accounts are significantly behind then you are really inviting corruption in the respective units,” Wehby said.

Wehby said the late submission of government accounts has been a perennial problem for decades and called on the government to carry out a comprehensive review to determine why government accounts continue to be plagued by chronic lateness.

He said if the audited accounts are not ready because of the lack of resources in the audit companies “let us get the internal audit department to certify that the management accounts are in order although they are unaudited by an external body”.

Wehby said that this would allow the Cabinet to have a matrix to show that management accounts are up to date and certified by the internal auditors and reviewed by the board.

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