Press Conference

Sir Lynden Pindling Center 

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.