‘$3-trillion crisis’

A review of the auditor general’s annual reports for 16 government entities, including ministries, by a governance watchdog body has revealed a staggering $3 trillion in spending that has been unaccounted for over a six- to 11-year period.

Jeanette Calder, executive director and founder of the Jamaica Accountability Meter Portal (JAMP), has described the finding as an accountability crisis, indicating that the serial offenders are topped by the Ministry of Education, Youth and Information, the Ministry of Health and Wellness, and the Ministry of Labour and Social Security.

The three ministries largely have a social mandate centred around vulnerable populations whose needs are vast.

“When we look at the money in terms of the reports that they have not provided the auditor general or the Parliament with and the value of those reports, we came up with a $3-trillion crisis,” Calder said while speaking to journalists during a media round-table at Alhambra Inn in Kingston yesterday.

“These are reports that every year, the auditor general has been [producing] until it compounds to 10,” Calder added.

JAMP’s deep dive determined that for nine years, the education ministry has not given an account for spending that totalled $902 billion. Similarly, for 10 years, the health ministry spent $695 billion, for which it has provided no document, and the labour and social security ministry has not accounted for $53.4 billion.

Guilty, too, according to JAMP’s review, are six municipal corporations with spends that amount to $10 billion and which have not given account of the funds for 11 years.

JAMP noted as well that for 10 years, the Forestry Department has not said how it spent $8.6 billion. Equally, the Forensic Science and Legal Medicine department was found to have delayed reporting on its account, spending $5 billion.

The Jamaican Parliament was found to have spent $6 billion over five years, which it has not reported on. The Department of Correctional Services was determined to have spent $36.9 billion over four years and the Jamaica Constabulary Force $152 billion over three years, while not explaining the spend.

The Office of the Prime Minister spent $12.02 billion over three years which, JAMP said, has not been accounted for.

Of concern, the civil society group noted, is the $111.3 billion from the Ministry of Finance over three years. The money was spent through its appropriation accounts.

Also outstanding are the debt-amortisation ($482 billion) over three years and the debt-interest ($592 billion) over four years.

Calder said that while it is easy for fingers to be pointed at the three-year COVID-19 period, there are 146 public bodies, 14 ministries, several departments and agencies, the majority of which found a way to account for the public’s money.

Calder noted that while these are not missing funds, with the kind of accountability environment and governance issues that Jamaica has, there is no chance that “mischief” has not had a role to play over the periods.

“If I have 1,000 toilet papers in the office and somebody takes two, you won’t see it. If you have 10 and you take two, somebody will notice. We’re talking about a trillion dollars,” she said, noting the potential abuse that may be taking place.

Further, she pointed to Section 25 (1) of the Public Bodies Management and Accountability Act, which speaks to a breach of the legislation in failing to submit annual reports and audited financial statements, among other things.

It is the task of the attorney general to bring an application to the courts when a violation occurs.

If the courts are satisfied that there is guilt, it may order the “person” concerned to pay a penalty not exceeding $1 million.

Not since 2014, when Jamaica was under the scrutiny of the International Monetary Fund, has the Attorney General’s Chambers acted on this.

“So we know that it is possible. We know that there is a mechanism. It does need to be tweaked and to be strengthened, but we know that it can be done,” Calder said.

kimone.francis@gleanerjm.com