AEROTEL - Paid $1.92 million phone bill for Chairman’s phone usage 23 months after departure

Auditor General's Findings

AEROTEL paid $1.92 million in Closed User Group (CUG) charges for 23 months after Chairman’s separation from the entity. In February 2012, the Chairman of AEROTEL demitted office and the CUG mobile phone was not recovered immediately on his departure. The Chairman used the phone for 23 months after demitting office and accumulated $1.92M in charges, which was paid by AEROTEL. These improper payments were not initially detected despite being subjected to three levels of approval, which includes certifying and authorising officers (Senior accounting staff) and the cheque signatories (Director of Finance and another Director). Further, AEROTEL did not establish pre-set limits on its CUG plans during the period January 2012 to April 2015.

Permanent Secretary (current): Alwin Hales

Breach Category: Resource Management

Permanent Secretary (at breach): Alwin Hales

Breach Type: Misuse of Assets

Status: Full Compliance

Last Assessed: July 2, 2018

Year Reported: 2017

Year Resolved: 2017

Recommendation

Management should strictly adhere to the Government’s guidelines for the use of CUG phones and monies should be recovered. A mechanism should be implemented to recover company property when Board members demit office.

JAMP Update

AEROTEL advised JAMP: “Aerotel has made every effort to recover through the courts system but has not been able to achieve any recovery, even after having obtained a judgement in defaults against the defendant. We are of the view that there is no further cost-beneficial means of recovery. Subsequent implementation of improved controls and procedures will ensure that there is no recurrence of the rare breakdown that occurred. Note that Pre-set CUG limits, referenced to the requisite GoJ policy, were in place at AEROTEL before the Auditor General’s audit commenced.”

Response At PAC: “Limits were already in place for phone usage our error failing to realise that the bills were not for the new Chairman”