Nassau,
Bahamas
Bradley
B. Roberts, MP - Chairman PLP
January
31, 2002
Frank Watson
Asleep at the Wheel
&
The Bahamas
Electricity Corporation
It
has been brought to my attention that irregular activities have been going
on at the people’s Bahamas Electricity Corporation. Such irregularities,
I am compelled to bring to the attention of the people of the Bahamas by
way of the print and electronic media. The said irregularities are concerning
transactions as conducted by one Ms. Knowles on behalf of BEC with a company
known as Caribbean Supplies Bahamas Limited.
I
will provide the press with a copy of the investigative report entitled
“Irregularities – Transaction with Caribbean Supplies” which is dated 15th
January 2002 and is signed by the assistant General manager and Chief Internal
auditor of Bahamas Electricity Corporation.A
reading of the report is a must.
The
conclusion of the report was that a former employee of the Corporation
Ms. Knowles committed improprieties in the handling of the accounts of
Caribbean Supplies, which in some instances resulted in significant over-payment
and consequently loss to the Corporation.
The
fraudulent over-payments total $320,225.
My
information is that Mr. Fred S. Ramsey is the owner of Caribbean Supplies.
I am providing members of the Press with a copy of the latest Annual Return
filed with the Registrar General Department for the year 2000.I
also provide copy of the Certificate of Incorporation number 41,488 which
confirms that the company was incorporated on the 15th August 1995.My
information is that Mr. Fred Ramsey has been a member of the Board of BEC
for some five to six years and his tenure ended at December 31, 2000.Mr.
Ramsey secondarily is a former Candidate of the Governing Free National
Movement.
As
reported by internal auditors at BEC, entitled, IRREGULARITIES-TRANSACTIONS
WITH CARIBBEAN SUPPLIES, dated January 15, 2002, the synopsized and summary
conclusion of the internal auditors, supported by documentation concludes
that:
1.ON
NOVEMBER 21 & 22, 2001, THE AGM-CHIEF INTERNAL AUDITOR WAS INFORMED
ABOUT A FAILED ATTEMPT BY MS.KNOWLES
TO OBTAIN APPROVAL FOR A PREPAYMENT ON A PURCHASE ORDER.
2.THE
PURCHASE ORDER WAS A FORGED DOCUMENT THAT WAS ORIGINALLY RAISED ON ANOTHER
COMPANY BUT WAS ALTERED OR TAMPERED WITH TO MAKE IT APPEAR AS THOUGH IT
WAS A CARIBBEAN SUPPLIES PURCHASE ORDER.
3.THIS
UNUSUAL AND UNETHICAL CIRCUMSTANCE LED TO MS. KNOWLES BEING GIVEN A FOUR
DAY SUSPENSION ON NOVEMBER 23, 2001.
4.SUBSEQUENT
TO THIS SUSPENSION, MS. KNOWLES WAS THEN PLACED ON A SERIES OF SUSPENSIONS
FROM EMPLOYMENT, ALL WHICH RAN CONSECUTIVELY.
5.AN
INVESTIGATION INTO THE CORPORATIONS TRANSACTIONS WITH CARIBBEAN SUPPLIES
WAS UNDERTAKEN.
It
has also been brought to my attention that Caribbean Supplies is a company
that has been doing business with BEC since late 1995. The company had
given notice that it was ceasing its operations in the year 2000 and officially
stated so to BEC by letter on April 27, 2001. However, Caribbean Supplies
was given a payment on September 27, 2001 in the amount of $33, 019.50;
though the most recent purchase order was received on January 12, 2001.
Up
to the time that I received this documented information, the principle
charges levied against Ms. Knowles were inclusive of but not necessarily
limited to the following:
A.ATTEMPTING
TO RAISE A PAYMENT TO CARIBBEAN SUPPLIES USING AN ALTERED PURCHASE ORDR
RAISE TO ANOTHER VENDOR.
B.POSTING
INVOICES FOR PROCESSING, RESULTING IN OFTEN SUNDRY WRONGFUL PAYMENTS AND
OVER PAYMENTS TO CARIBBEAN SUPPLIES.
C.APPARENTLY
COLLUDING WITH OFFICER(S) OF CARIBBEAN SUPPLIES TO RAISE FICTITIOUS INVOICES
TO EFFECT WRONGFUL PAYMENTS TO THAT COMPANY FROM THE CORPORATION.
D.APPARENTLY
DECEIVING SIGNATORIES TO SIGN CHEQUES PAYABLE TO CARIBBEAN SUPPLIES, WHICH
WERE NOT VALID AND NOT PROPERLY SUPPORTED.
E.THE
APPARENT WITHDRAWAL, REMOVAL OR DESTRUCTION OF THE CORPORATION’S RECORDS
(CHEQUE VOUCHERS AND SUPPORTING DOCUMENTS), WHICH COULD PROVIDE COMPLETE
EVEIDENCE OF THE TRANSACTIONS.
Within
the supported documentation that I have provided you will find a complete
rendition of the information that I have just synopsized and summarized
for you.
Arising
out of the information that I have just supplied you with, are a few questions
that beg for answers from the government. The questions that I put to the
government are as follows:
1. CAN
THE HON. FRANK WATSON, THE MINISTER RESPONSIBLE FOR BEC CONFIRM THATFRED
RAMSEY, A FORMER LONG STANDING BOARD MEMBER OF BEC, AND A FORMER CANDIDATE
FOR THE FNM IS THE OWNER OF CARIBBEAN SUPPLIES?
2.WHOSE
MAN IS MR. FRED RAMSEY?
3.WHAT,
IF ANY, IS THE RELATIONSHIP BETWEEN MS. KNOWLES AND FRED RAMSEY?
4.IF
FRED RAMSEY, IS THE SAME AS THE ONE WHO WAS A FORMER LONG STANDING BOARD
MEMBER OF BEC AND OWNER OF CARIBBEAN SUPPLIES, WHY DID THE MINISTER RESPONSIBLE
FOR BEC (FRANK WATSON), ALLOW MR. RAMSEY’S COMPANY TO DO BUSINESS WITH
BEC, WHILE MR. RAMSEY WAS A MEMBER OFBAHAMAS
ELECTRICITY CORPORATION BOARD?
5.WHAT
KNOWLEDGE DID OTHER BOARD MEMBERS HAVE OF THIS ARRANGEMENT?
6.IF
OTHER BOARD MEMBERS WERE AWARE OF THIS CONFLICT OF INTEREST, WHY DID THEY
NOT DRAW THE CONFLICT TO THE ATTENTION OF THE PROPER AUTHORITIES?
7.WERE
OTHER BOARD MEMBERS ALSO DOING LIKE BUSINESS WITH BEC AS BOARD MEMBERS?
8.WILL
THE DEPUTY PRIME MINISTER TELL THE BAHAMIAN PEOPLE HOW MUCH BUSINESS WAS
TRANSACTED BETWEEN BEC AND CARIBBEAN SUPPLIES DURING THAT COMPANY’S EXISTANCE?
9.WHAT
KNOWLEDGE DOES THE DEPUTY PRIME MINISTER HAVE OF THIS MASSIVE RIP-OFF OF
BEC AND THE TAXPAYERS MONEY BELONGING TO BEC?
10.WHILST
THERE IS CLEAR EVIDENCETHAT THE
BENEFICIARY OF THIS MASSIVE RIP-OFF IS CONTROLLED BY A POLITICAL APPOINTEE
AND FORMER BOARD MEMBER, THERE IS NO EVIDENCE AVAILABLE TO ME THAT THE
HON. DEPUTY PRIME MINISTER HAS TAKEN ANY STEPS TO RECOVER THE FUNDS.AND
THE QUESTION I ASK IS, WHY HAS NO ACTION BEEN TAKEN, AND I REPEAT AGAIN,
WHOSE MAN IS MR. FRED RAMSEY?
11.WHY
HASN’T THE DEPUTY PRIME MINISTER DIRECTED THAT THIS MATTER BE TURNED OVER
TO THE POLICE?
12.IS
THE GOVERNMENT SATISFIED THAT THIS IS IN FACT, THE ONLY CASE EXISITNG WHERE
BEC HAS BEEN DEFRAUDED OF MONEY? HAS THERE BEEN A FULL INVESTIGATION OF
BEC TO ENSURE THAT NO OTHER SCANDALS ARE BREWING OR HAVE OCCURRED?
13.MY
INFORMATION IS THAT MS.KNOWLES
IS SAID TO BE WELL CONNETED IN FNM CIRCLES AND MET WITH THE HON. TOMMY
TURNQUEST AND THE HON. DION FOULKES SEEKING THEIR ASSISTANCE TO INFLUENCE
THE MANAGEMENT OF BEC. WHAT RELATIONSHIP DID EITHER THE LEADER-DESIGNATE
OR HIS DEPUTY HAVE WITH MS.KNOWLES?
AND WHAT INFLUENCE DID THEY HAVE AT BEC?
14.WITH
THE RESIGNATION OF A MINISTER BEING THE ULTIMATE CONSEQUENCE FOR MASSIVE
CORRUPTIONAT GOVERNMENT MINISTRIES
AND CORPORATIONS, WHY HAS THE PRIME MINISTER NOT FIRED THE MINISTER RESPONSIBLE,
FRANK WATSON?
15.WHY
DID WE, AS AN OPPOSITION MEMBER, HAVE TO BE THE ONE TO BRING THIS SCANDAL
TO THE ATTENTION OF THE PEOPLE OF THE BAHAMAS WHO FINANCE BEC WITH THEIR
HARD EARNED TAXES?
We
invited the Press here today because here we have yet another scandal where
taxpayer’s money is being spent in a most dubious manner and in a most
unethical way. Bahamians deserve better than to be kept in the dark about
the workings and transactions of their ministries and corporations.
The
Bahamian people do not deserve to be told how strict and disciplined the
government has to be with money because of a shrinking economy. But yet
can allow chosen individuals to have their way with taxpayers money, while
the masses are held to meager expenditures on their behalf and for their
welfare, by this negligent government.
The
Prime Minister has proclaimed that the Hon. Frank Watson is the only Minister
he trusts yet Mr. Watson has been embroiled in scandal after scandal.Today
you have yet another scandal which clearly points to Mr. Watson being sound
asleep at the wheel.The time is
long overdue, Mr. Watson must go.