🚢 PACI criticized for extravagant Christmas party spending

The Port Authority of the Cayman Islands (PACI) has come under scrutiny by Auditor General Sue Winspear for spending an "excessive amount" on a Christmas party in 2022. The party's cost, totaling CI$56,522, significantly exceeded the government limit of $40 per head. With 166 employees, the budget for the event should have been no more than CI$6,640. The authority spent this amount on fireworks alone. The total cost of the party is higher than what 66% of the Cayman Islands’ workforce earn in a year, leading the auditor general to question its value for money. 🎆

PACI operates on its earnings from local business and resident fees for handling cargo and cruise passenger fees, generating more than $20.4 million and around $1.8 million respectively in 2022. Despite this, the authority has previously fallen into deficit and required subsidies from the central government. Winspear advised PACI to align its entertainment expenses with average government spending. The auditor general also highlighted a lack of documentation for the party's expenditure approval, calling it a "governance weakness". The port has stated that future entertainment expenses will be taken to the board for approval. 📝

While PACI reported a surplus of $16 million in 2022, this was largely due to a revaluation gain from investment property and a favourable movement on the remeasurement of the defined benefit obligation. The port still sustained an operating loss of $1.3 million, leading the director to suggest an increase in port fees. The auditors identified several issues relating to internal controls, including excessive party spending, non-compliance with procurement regulations and the Public Authorities Act, and deficiencies in inventory management. 📊