Board members on public entity's payroll

Members of the Public Accounts Committee (PAC) of Parliament were yesterday unanimous in their condemnation of a decision by Nutrition Products Limited (NPL) to employ two members of its board to serve in salaried positions.

"Unacceptable" and "highly irregular" were some of the comments from members of the PAC after they were told that one board member was paid just over $1 million by NPL in two consultancy contracts, while the other is now employed as a senior manager at the state-owned company.

The salary being paid to the employed board member was not disclosed, but it was clear that neither post had been advertised and the auditor general was yet to see any evidence of the qualifications of the board members who were offered the jobs.

With PAC members fuming, it was the usually fiery government MP Everald Warmington who seemed to best capture the view of his colleagues when he mumbled, "Incestuous relationship."

Warmington was supported by Opposition member Dr Morais Guy who quipped: "To me, it just look, like them give one of them bredren a job."

Guy's comments came as the general manager of NPL, Orvile Lewinson, fumbled through an explanation.

"GM, just take a deep breath and reflect on what you are saying," suggested PAC Chairman Dr Omar Davies, as Lewinson offered contradictory responses to the questions from members.

Shocking disclosure

But it was the disclosure from Audrey Sewell, permanent secretary in the Ministry of Education, that she had no knowledge of the arrangements, which most shocked members of the PAC.

The education ministry has oversight responsibility for the NPL and members of the PAC were looking to Sewell for an explanation.

"All of this that is unfolding, I'm hearing for the first time," Sewell told the committee.

"I saw this (query) in the auditor general's report and it was discussed and I was told that the person was no longer employed as a consultant, but what I'm hearing now (about a second board member being employed), I'm hearing for the first time," added Sewell.

She said that, having seen the auditor general's query about a board member being contracted as a consultant, she ordered a special audit into operations at NPL but there was no indication from the management that a board member had been employed in a full-time capacity.

According to Sewell, Education Minister Andrew Holness was also not aware of the arrangements.

"He is not, and I will bring it to his attention," Sewell said.

That prompted a quick retort from Davies, who made it clear that the situation needed to be addressed urgently.

"This is not only undesirable but it should not happen," Davies said as he responded to the disclosure by officials of NPL that the terms of reference for the two board members employed by the company had been approved by the same 11-member board they sit on.

"It is not that it is impossible for a board member to carry out professional duties, but there are clear rules that persons should not even be in the room when that decision is being taken," said Davies.

"PS (Sewell), clean this up immediately," added Davies.

But Lewinson, who has served as general manager of NPL for seven years, said measures were now in place to ensure that there was no repeat, even though he admitted that the board member continues to serve as a manager at the company and is not the worker representative on the board.

"He should have resigned from the board," an obviously disappointed Sewell quickly responded.