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Stabroek News



How Government lost $350,000 on hotel booking cancellation
published: Sunday | June 25, 2006

Leonardo Blair, Enterprise Reporter


Davies

GOVERNMENT SHELLED out approximately US$6,000 (near $350,000) in 2003 to Locksley Smith, technical adviser to the Minister of Finance, for charges made on his personal credit card for cancelling a four-day hotel reservation in Milan, Italy, for himself and four other senior officials. These include Finance Minister Dr.Omar Davies and former financial Secretary Shirley Tyndall.

In a recent interview with The Sunday Gleaner, Smith explained: "I don't have a (government issued) credit card. I don't know if any (government) officer has an official credit card. I think the minister uses his personal card too. I am not sure."

TRIP CANCELLED

The hotel reservations were made through Ventura Travel, an Italian travel agent on January 6, 2003.

Documents acquired under the Access to Information Act reveal that Smith used his American Express credit card to facilitate the reservations for the official government delegation completed by Dr. Wesley Hughes, director-general of the Planning Institute of Jamaica (PIOJ) to attend an Inter-American Development Bank (IADB) meeting scheduled for March 22 - 26 of that year.

But in an email dated March 21, 2003, just one day before the expected arrival of the delegation in Milan and two days after U.S. President George W. Bush declared war on Iraq, Smith asked Ventura to cancel the reservations.

Mr. Smith's card, however, was still debited US$$5,771 for the reservations made on January 6, 2003. Ventura had clearly stated under its cancellation terms that "for cancellations after 31st January 2003 no refund can be guaranteed."

A written response from the ministry regarding Smith's reimbursement for the reservation stated: "This clause resulted in Mr. Smith who acted on behalf of the Ministry of Finance and Planning in an official capacity being responsible for the debt of US$5,771.69.

"Given the circumstances, the matter was referred to the Public Expenditure Policy Coordination Division (PxPC) on the recommendation of the Finance and Accounts Division. PxPC is the division responsible for advising and regulating the financial affairs of the ministry.

Subsequently, approval was granted for Mr. Smith to be reimbursed the sum so charged."

Smith said although the trip was cancelled, the meeting was not postponed. The travelling group decided not to attend for reasons he cannot remember.

He further explained that he still uses his personal credit card for foreign travel to expedite travel arrangements.

If his integrity is called into question, he says, he will have to stop using his card for government business.

"The thing is if I use my own card I have to give them a bill in order to be reimbursed. I have never asked for a government credit card." says Smith who coordinates the overseas trips for the Finance Minister.

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