BPL fraud: More staff face sack

Thursday, August 17, 2017

By RICARDO WELLS

Tribune Staff Reporter

rwells@tribunemedia.net

AFTER three employees were fired from Bahamas Power and Light on Wednesday in connection with a probe into a $2m theft, a senior official at the utility provider has warned that more firings are on the way as the investigation continues and will include those who are “higher up” in the company if found culpable.

The statement from BPL Chairwoman Darnell Osbourne came hours after the Bahamas Electrical Workers Union (BEWU) spoke out in protest over the firings of the three employees.

BEWU Secretary General Astrid Bodie, in an interview with The Tribune outside of the company’s Blue Hill Road headquarters, demanded clarification on the process that had led to the firings, alleging yesterday that managers who should be held accountable were allowed to return to work Tuesday, while all junior employees under investigation were terminated.

Both the government and the BPL board have received copies of an audit conducted by Ernst and Young into the discovery of a five-month long scheme, which involved approximately 44 cheques paid out to 16 vendors from December 16, 2016 to May 9, 2017.

The workers, all from one department, were suspended on May 15.

Ms Osbourne confirmed yesterday that more than $2m was missing as a result of the scheme.

She said the company takes the matter surrounding the missing funds very seriously and intends to “go through the necessary channels” to reclaim all money lost, adding that BPL will “follow up” with police to “ensure justice and guard against similar actions in the future.”

BEWU officials said yesterday that they have not been officially presented with a copy of the findings, and have been left to put the pieces together with “the little things” disclosed in letters given to the terminated employees.

“Today, all the managers involved have returned to work. Three managers involved . . . they are back at work today and we are (left) awaiting the fate of our members,” Mrs Bodie said.

She maintained the employees terminated were acting under directives and never carried out a transaction that was not sanctioned, approved, signed-off and finalised by management at BPL.

According staff at the company, employees in the department in question are required to, with any transaction, process claims under the guidance of senior personnel. This means that all transactions would have to go through an authorisation process, checked and approved by a manager, further processed by the employees and then finally signed off by that supervising manager.

Furthermore, all cheques used would have had to have been made out to a vendor recognised and sanctioned by BPL, and if any issues are raised, the audit department would step in, it was claimed.

To this end, Mrs Bodie said the scheme was fostered through blatant mismanagement and errors on the part of general workers and management alike.

“There were 44 cheques cut fraudulently for 16 different companies,” she told The Tribune.

“(They) were instructed and did exactly that. They didn’t come up with these transactions and made these arrangements, they were instructed by their bosses,” she claimed.

“But today, these employees, now former, are being (brought) out as if they were the minds and muscle behind this well-thought out scheme,” the union representative said.

“This is wrong. This is awful. There is no way this should happen like this. No, the union isn’t condoning theft in any way, our point is don’t railroad the employees in a scheme created and carried out by persons in management and give the impression that only they were a part of it.”

Yesterday, Ms Osbourne called on union officials to exercise patience as the investigation continues.

“The public should know that this investigation is not completed as yet,” she said in a statement sent to The Tribune.

“Over the ensuing weeks based on the evidence there will be further terminations as management properly considers the evidence gathered.

“Persons terminated today are not the only ones involved in the scheme. Any individuals who may be higher up in the organisation and found to be culpable will also be terminated.

“The employees’ union should have confidence in management and the board that everyone who actively conspired to defraud BPL will be terminated, irrespective of who they are,” the chairwoman said.

“The union should be encouraged to exercise patience and await the full implementation of the investigative report.”

Aftermath

In a tearful interview Wednesday, one of the terminated employees who agreed to speak with The Tribune if kept anonymous, said she was left devastated by the ordeal.

The employee said she couldn’t put into words how she could be “used” and “thrown to the side” after more than five years with the company, for doing things she “did every day.”

“This is something I can’t explain or even put into words because it’s still hard for me to understand. School is opening in a couple of weeks and I am out of a job because, according to this letter, there is suspicion that I was involved in (a) fraudulent scheme.”

With tears in her eyes she added: “I did what I was told; nothing new, nothing strange. The same thing I did every day; I was here. I checked off what I need to check off and I followed all the guidelines as presented to me on day one. Now today, I am being pushed out with my name tied to theft and fraud.

“One cheque. I was tied to one cheque that I saw no issues with. I was told put together the invoice left on the desk of a temporary employee and put it in for vetting. I did that,” she told this newspaper.

“Now I am left to deal with this. I am a single mother. I have to get my kids ready for school. I have so much to do and now this. There is no way to put how I feel into words,” she said.

Police in May announced that an investigation was launched into the alleged theft of a large amount of money at BPL.

In the months since, the scope of the scheme has been uncovered to be larger and costlier than initially suspected.

Officials have said it is likely people will be prosecuted in relation to the investigation.

When contacted this week for comment on audit report’s findings, Works Minister Desmond Bannister promised that the government will be “fully transparent” with the information presented once it is reviewed.

In May, BEWU President Paul Maynard contended “there will be hell to pay,” if his union members remained on suspension while managers at the power company “go unscathed”.

At the time, he insisted employees were being accused of sending in invoices from fake companies, getting a cheque for the amount and then using someone in a local bank to cash the cheques.

Mr Maynard added then that the scheme was “elaborate” and could not work if only junior staff were involved.

Comments

BahamasForBahamians says...

This investigation is rank and stinks of bias.

There is no way three junior level employees were able to funnel an excess of $7million out of the corporation over a period of a year without raising any flags to the executives.

It is known fact that the CFO - who's responsibility it is to ensure the Corporations finances are intact - is a card carrying FNM who was pivotal in several elections in the past. For example, there is visual evidence to prove she was extremely intimate in the election bid of past Marathon-mp Earl Deveaux.

Given the facts above there is reason to believe the CFO has been immune from prosecution due to her ties to the incoming government.

Moreover, it is public knowledge verified by photographic evidence that the incoming Chairman (Darnell Osbourne) and the infamous CFO enjoy a harmonious friendship outside of the corporation. Can this be another reason, actions as a result of the audit did not reach the CFO's doorstep?

Moving along: if you catch the Our news segment yesterday and reach out to the one of the disenfranchised BPL employees, or one who's job is still intact - they will tell you: throughout the course of the investigation there were several cheque's signed to fake vendors by the same CFO!

Here's a stark comparison: you have outgoing Cabinet Ministers being accused of less than $500k in offenses in some instances but they are hauled before the courts for justice..

But in this instance, there's an audit conducted by PROFESSIONALS showing there has been fraud that resulted in significant losses to a government subsidized entity, but there are no arrests? WOW.

Boy the FNM moving quickly to erode their popularity.

Posted 17 August 2017, 10:47 a.m. Suggest removal

realfreethinker says...

Stay tuned the bank lane shuffle is coming. But like the union,you are concerned about 3 person and not the millions that is missing which affects all employees and the public. You guys have to take off your yellow tinted glasses and see it for what it is THEFT.

Posted 17 August 2017, 10:57 a.m. Suggest removal

licks2 says...

Any wonder why no-body is on the PLP's run!! I say like Dame Sawyer. . .SHUT UP. . .YOU ARE SO "IGNINT" ABOUT THE CASE. . .OR COMMON SENSE FOR THAT MATTER. . .JUST SHUT THE HECK UP!!!

Posted 18 August 2017, 11:19 a.m. Suggest removal

TalRussell says...

Comrades! There doesn't seem be no "if" diversion of funds occurred but how many persons and their rankings participated in the missing $2 million? The Union should be embarrassed - not acting as the chief explaining of the $2 million in missing monies. Let's pray the many years corrupt lending policies over at the Bank of Bahamaland - is not to be left to the wisdom union leaders? There are "certain Comrade'"s that even I would enjoy seeing being policeman's escorted down Bank Lane with lots media cameras clicking away.

Tal I will agree with you on this one. They must have been advise by Brave or Fweddy. Their concern is not about the millions missing,wish affects all of the employees and the public with higher costs. They are wondering about not being able to collect dues from 3 persons.

Posted 17 August 2017, 10:53 a.m. Suggest removal

Comrade RealFreeThinker, I have been saying for years that I never accepted that neither of the two former law partners would ever have used the prime ministesr office for personal wealth enrichment. In fact two men's net assets are well below what they would have attained had they not served the nation in public office....And, I think in the weeks and months ahead - the former PM, will talk some things that may not be supportive of his former colleagues bad judgments. Could it be that they both may have have been complacent by allowing others around them to enrich themselves...... only time can maybe truly answer this question?

Posted 17 August 2017, 11:05 a.m. Suggest removal

baldbeardedbahamian says...

Since we talking corruption I only gonna say one thing only, Cable Bahamas shares. I ain't calling anyone's name either.

Posted 17 August 2017, 11:33 a.m. Suggest removal

OldFort2012 says...

Not sure I understand the logic of the firings. Surely the logical steps would be:
1/ Audit
2/ Present audit to Police & Prosecutor
3/ Police & Prosecutor decide who to prosecute
4/ Court case
5/ Verdict
6/ Guilty persons go to jail according to sentence
7/ Guilty people get fired
This way you can get fired for fraud AND be found NOT GUILTY. Where is the logic in that?

Posted 17 August 2017, 11:37 a.m. Suggest removal

Comrade OldFort2012, it's called 'Dirty 'Politics.' Always protect you're own colours! Nodifferent than the codes street gangs.
You know it's like when you out walking and all sudden you catch your toes under bottom your foot and you does go for an unexpected stumble. This also happens with governing power politicians - when they unexpectedly discover people close to them would also stumble if they tooks the kinds action most recommended.
You'd thinks real transparency would be easy on this one. Make the damn 'audit report public'.... not tripping over your red shirts toes? Why should taxpayers' be paying for a audit report that they will never get to read for themselves. Why the hell not. PM and KP?

Posted 17 August 2017, 11:49 a.m. Suggest removal

So using your logic, if someone steals from you they wont be fired unless they are found guilty?

Posted 17 August 2017, 4:32 p.m. Suggest removal

This is not a case of having seen the thief. They have no idea who the thief is. So, if I have not seen the thief, I surely cannot be judge and jury. That is why we have Police, Prosecutors, Judges and Juries. You might be real, even free. But thinker you ain't.

Posted 17 August 2017, 7:11 p.m. Suggest removal

such a weak response. People are fired daily for stealing and not prosecuted so your argument is quite flawed.

Posted 17 August 2017, 11:13 p.m. Suggest removal

http://www.thenassauguardian.com/news/7…

Posted 18 August 2017, 4:40 p.m. Suggest removal

What stupidity coming outta you. . .TALK SENSE OR JUST SHUT UP!! I would suggest that you and tal, and birdie go get the employment act 2001 and the union agreement with the cooperation and you will see why. . . yall just SHUT UP ALREADY AND GO READ FOR ONCE BEFORE YA START TALKING CRAP AROUND HERE!

Posted 18 August 2017, 11:25 a.m. Suggest removal

yari says...

“There were 44 cheques cut fraudulently for 16 different companies,”. Someone had to receive and cash these cheques for fraud to occur and money to be missing. The paper trail should lead to arrests and prosecutions. I can't wait to see who the players are.

Posted 17 August 2017, 12:19 p.m. Suggest removal

Comrade Yari,you thinks it could be the PM and KP - have been too damn occupied with leading the charge for 'verification' of all government workers - rather than to take timeout for 'vitrification' of exactly whom all slipped away with what may well have risen to be as much as $7 million gone sideways at BEC/BPL? But who knows if mysteriously it's all explainable- if there could be a Ghost or Ghost's with pens in hand - signing 44 those cheques?

Posted 17 August 2017, 12:31 p.m. Suggest removal

Well_mudda_take_sic says...

ditto that @yari

Posted 17 August 2017, 1:39 p.m. Suggest removal

DDK says...

How does Power Secure play in all this???? Were they not at the helm at the time the cheques were cut?

Posted 17 August 2017, 1:40 p.m. Suggest removal

Comrade DDK, even I couldn't have made up that only in The Bahamaland - would we have to issue Work Permits to import foreigners to watch - whilst $2 to $7 million went sideways over at BEC/BPL?
{ You just can't make this one up }.

Posted 17 August 2017, 1:52 p.m. Suggest removal

Your plp at work Tal

Posted 17 August 2017, 11:14 p.m. Suggest removal

I GUESS YA RIGHT ON THIS ONE. . .ONLY YA PLP PALS COULD HAVE MADE SUCH A "COCK-UP" BLUNDER. . .BECAUSE THEY WERE THE GOVERNMENT WHO DID THE DEAL. . .WITH BRAVE LEADING THE CHARGE!!

Posted 18 August 2017, 11:30 a.m. Suggest removal

Comrades! Just you give the newest set reds fingers more time at governing to make their grabs for some extra cash.....One former BEC red Papa Hubert appointee - done done his slippery fingers cash-grab thing. Right? Y'all talkin likes the only thing reds shirts grab for is Crab Grass?

Posted 18 August 2017, 1:04 p.m. Suggest removal