Education Ministry dismisses fraud, nepotism allegations against Nutrition Products Limited

The Ministry of Education says allegations of fraud and nepotism at Nutrition Products Limited (NPL) are baseless.

The company is charged with the production and distribution of nutrition products to selected schools island-wide.

The claims were made by opposition senator Lambert Brown in the Senate on Friday.

In a statement today, the education ministry says it exercises its accountability functions over NPL through regular meetings with its Board of Directors and CEO where ministerial directions are given and performance reports are received.

“There have been at least four (4) such interfaces with the Ministry year to date. The NPL also is at the table quarterly along with other agencies of the Ministry, where performance reviews are done. In addition, the NPL sits at the school feeding coordination committee meeting of the Ministry, where reconciliation of funds under its purview are reviewed to ensure efficiency and effectiveness of its service to our students,”.

According to the ministry, NPL’s financial records are audited annually and the reports, which include audited financial statements, are reviewed within the ministry and thereafter submitted with a performance summary to the Cabinet for tabling in the Houses of Parliament.

It says NPL’s last audited financial statements submitted were for the period 2016/2017, which makes the company compliant with the requirements of the law.

“Based on analysis of the company’s latest financial statements, the auditors have found no adverse issues to support any allegation of fraud or misconduct in the company’s operations,”.

The education ministry says despite the unqualified report of the external auditors, it’s Internal Audit Department, consistent with its revised audit plan, commenced its compliance and management audit of the company in March 2018.

According to the ministry, this audit is ongoing but to date have not shown any evidence of fraud or mismanagement or nepotism in the operations of the entity.

“In addition, the Public Accountability Inspectorate of the Ministry of Finance has been carrying out inspections of the operations of NPL since early 2018 and no evidence to date appears to suggest that there are irregularities at the company,”.

“The Ministry regards seriously information given to the Honourable Senate and therefore will be asking Senator Lambert Brown to meet with its Permanent Secretary on the allegations made so that additional steps can be taken to clarify the issues or to escalate same to highest authorities once there is any basis of fraud, mismanagement or nepotism, in accordance with his statutory responsibility,”.

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