🔍 Cayman Islands Government spends CI$8 million outside procurement rules

Public bodies in the Cayman Islands have been found to have spent over CI$8 million in 2022 in non-compliance with procurement rules, according to a report by Auditor General Sue Winspear. The report highlights over fifteen cases where significant amounts of money were spent without following legislation. Examples include the Ministry of Education awarding a janitorial contract for $330,000 without the required Public Procurement Committee (PPC) approval, and the National Roads Authority awarding three contracts totalling over $700,000 without PPC approval. The Ministry of Home Affairs also spent over $1.9 million on goods and services without following any competitive procurement process. 📜

The report also reveals that the Maritime Authority of the Cayman Islands (MACI) spent around $2.4 million on surveyors and independent contractors without PPC approval, while the Ministry of Financial Services and Commerce paid $2.6 million to a vendor for computer services without evidence of subsequent tendering or PPC approval. The same ministry has also paid US$180,000 annually for legal consultancy services since 2019, amounting to about $491,000 spent without PPC approval. The Auditor General's report also documents failures by statutory authorities and government companies (SAGCs) to comply with the Public Authorities Act (PPA). 📊

Winspear's report also highlights the significant increase in stipends given to board members of some SAGCs, despite their volunteer status. For instance, the Cayman Islands Development Bank increased board members' pay by 2,710%, spending CI$111,000 in 2022 compared to just CI$3,950 in 2021. The report also notes that some boards are failing to meet in accordance with legislation, with the National Drug Council board only meeting twice during the 2022 financial year. The report concludes with a call for senior management and board members to submit their declaration of interest to the Office of the Auditor General, to identify any related parties and the resulting related party transactions. 📝