(CMR) Almost two years ago, the Cayman Islands Port Authority's board decided to “suspend indefinitely” the Audit and Risk Committee after concerns raised by the Office of the Auditor General. CMR has recently learned that the board reinstated the committee that is once again being headed up by Jacqueline Scott-Rankine.
Minutes from July 30, 2020, confirm that the board was attempting to address concerns that were raised by the Auditor General's 2018 International Standards on Auditing (ISA 260). It found that they were overstepping their board functions and “undertaking operational duties rather than remaining non-executive”. This was flagged as a significant risk to “effective governance and oversight.”
The control points listed at the back of the report promoted the board to indicate they would direct members “that interference in operational matters will cease” and that members will attend a training course for board members. Critics claim that to date neither of these undertakings has been done.
In response to that board chairman, Kearney Gomez, also met with Auditor General, Sue Winspear, CPFA to discuss the matter. It appears that one area of major concern was the remit of this particular committee. Gomez agreed that this committee no longer served its original purpose and should be disbanded.
According to the June 8, 2020 minutes a discussion was had on the matter followed by a vote. Both Jacqueline Scott-Rankine. and Richard Parchment voted against the motion which led to it being deferred. There was some discussion about whether it should be disbanded or suspended.
The minutes reflect that they wanted their objections to be recorded:
At the following meeting on July 30, a motion was submitted by Gomez where he noted that it should be suspended indefinitely. Once again the same two board members voted against this motion:
The committee was made up of board members but according to sources they do not publish any minutes and it was unclear what their remit was. The argument was that not only was the committee micromanaging the port authority but it also created “a committee within a committee” where some board members were making decisions unbeknownst to the larger board.
The two people on the committee were Jacqueline Scott-Rankine and Acting Deputy Director of Finance Donovan Hutchinson.
One example of overreaching appears to have been recorded in Minutes 463 where it was shared by Acting Port Director, Joseph “Joey” Woods that the procurement policy was created by the Audit and Risk Committee. Concerns were raised that it was ultra vires and eventually voted against. Woods shared that it “conflicted with the law”. Despite the concerns raised by everyone Jacqueline Scott-Rankine. and Richard Parchment once again dissented.
Then on October 21, 2021, the board decided to reinstate the Audit and Risk Committee with so much as a discussion on all that had led to it being suspended previously. In fact, it is unclear if any new board members knew that the formation of the committee was controversial in any way and had previously been addressed by the AG. Based on the board minutes there was no discussion or indication that the committee was previously suspended. Richard Parchment, Deputy Chair moved the motion to reinstate it:
Ironically, the reinstatement was done after the resignation of Joey Woods as port director and shortly after the new acting port director, Beth McField was appointed. It appears unlikely she would have known the history of that committee either.
In another unusual twist, board member Captain Ashton Bodden who had voted to previously disband it and was the member to second the motion to reinstate it.
Board members are compensated for each of these committee meetings in addition to their regular compensation for board meetings.
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