AUDITOR-GENERAL Adrian Strachan says the Jamaica Tourist Board (JTB) may be in breach of proper procedure relating to the award of two contracts totalling nearly $90 million.He made the observation in his department's annual report tabled in Parliament on Tuesday.
While pointing to a generally "satisfactory state of affairs" at several ministries and departments, Mr. Strachan has again pointed to a number of accounting breaches involving millions of dollars, that were uncovered during the year under review.
In the case of the JTB, he said: "There was no indication that two contracts involving the payment of fees of up to $87.274 million per annum had the required Cabinet approval."
He said also that there was "no evidence that the awards of four contracts valued at $9.22 million were based on competitive tenders as stipulated by Government's procurement procedures".
Additionally, the Auditor-General found that there was no indication that the JTB had the required approval of the Ministry of Finance for rental of a motor vehicle over a 10-month period at a cost of $556,803.
The JTB has been in the news for much of the second half of last year, especially as it relates to the mismanagement of funds at its New York office. The developments led to the resignation of a senior officer and the axing of another.
In the case of the Tourism Product Development Company (TPDCo), the department was cited for "a generally satisfactory state of affairs," by the Auditor-General, but was guilty of not deducting $251,364 from some emoluments paid to staff as required by law. He said that he was subsequently advised that recovery had commenced with effect from October 2002.
Also, there was no evidence that the Finance Ministry had approved the payment of $187,710 by TPDCo to a senior officer. The company subsequently advised that the approval of the Ministry of Finance had been requested and that recovery of the funds was being sought from the Ministry of Industry and Tourism.
