Damning allegations at NFMU … Defence by entity’s head under review –Telecoms Minister

Sep 10, 2016 News

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About four months ago, Minister of Public Telecommunications, Cathy Hughes gave a commitment to inform the nation, within a matter of days, on whether Valmiki Singh would continue to head of the National Frequency Management

Unit (NFMU).
In a forensic audit report that was conducted on the Unit, a number of allegations were made against Singh, all of which speak to breaches of the nation’s financial laws.
Specifically, in June last, Hughes had told Kaieteur News that Singh was asked to defend the said accusations. In that same period, she promised that a statement on the way forward would be provided. This however, was never honoured.
At a press conference yesterday which was held by the Alliance For Change (AFC) after some 15 months of being in office, Hughes was questioned on whether she has finally decided on the way forward regarding Singh’s continuation on the job.
“Singh has responded and he has given me a series of responses to some of the issues raised in the audit. I do feel, as in any court of law, he is entitled to due process…It is my hope that we would be able to act on those comments,” Hughes said.
The AFC Executive Member added, “We are reviewing it right now and I would commit that at an appropriate time I would be bringing further information on that.”
The forensic audit report on the NFMU, which was prepared by auditors attached to Ram and McRae, Chartered Accountants, had cited numerous areas where Singh was found in breach of financial laws.
Based on its examination of the employees’ personal records at NFMU, forensic auditors found, for example, that there was “gross abuse” by Singh, regarding the annual leave system.
In the audit report, the forensic team said that records show that Singh sought and obtained payment for leave not taken over an 11-year period.

The auditors said that the NFMU Head did so less than two weeks before the May 11, 2015 elections. At that time, they said that he wrote a letter to Dr. Roger Luncheon, former Head of the Presidential Secretariat, requesting payment for what he claimed to be 326 leave days accumulated over the years between January, 2004 and December 2014.
They said that attached to the letter was a computation of Mr. Singh’s outstanding leave days which was prepared by the NFMU’s Finance Controller.
The auditors however noted that the unavailability of documented application and approval of the leave carryover prevented any effort to verify the accuracy of the number of accumulated leave days.
The forensic auditing team said that under the Public Service Rules, leave may be deferred and added to the following year’s vacation. The deferral was “required in writing”.
Dr. Luncheon approved Mr. Singh’s request via letter dated April 30, 2015 and a total of $6.7 million was remitted to Mr. Singh after income tax totaling $2.9 million was deducted from the gross amount of $9.6 million.
The auditors said that it is considered dangerous to the organization as well as unhealthy for individuals, particularly those in a position of trust and responsibility, not to take their annual leave. They therefore recommended that this practice be discontinued forthwith.
They also recommended that the services of the Accountant be otherwise utilized or transferred, since that individual’s only responsibility was to manage the expenses of other government entities, a practice which the auditors believe should cease.
In another instance, it appeared as though Singh thought that he had more power than was actually allocated to him as Head of the National Frequency Management Unit. Auditors said that, perhaps, the organizational structure of the entity contributed to him acting outside of his authority in various instances.
The auditors noted that while the Minister – who has oversight for the NFMU – is the person designated to determine the remuneration of persons employed, after consultation with the relevant union, Singh – who was the Managing Director – arbitrarily determined the salaries of the workers.
The auditors revealed that NFMU was established as a “corporation sole”. This means that the entity does not have a Board like other companies would. It meant that the Managing Director operates as the Board.
Ram and McRae auditors also commented that such an organizational form is subject to minimal accountability and is precluded from benefitting from the range of skills typical of a Corporation with a Board of Directors.
Given the nature and scope of the work required to be done by the NFMU, the auditors emphasized that this type of organizational structure is completely inappropriate. As such, they recommended that it be governed by a Board of Directors with a range of skills and qualifications and offering some insulation of the management from the political functionaries.
They said that the entity’s only reporting obligation is to a Minister of the Government, who, for much of the NFMU’s existence, has been the President, which, even with delegation, does not offer sufficient opportunities for oversight and consultations.
The auditors revealed, too, that while such a Corporation may employ a Secretary, and other officers and employees it considers necessary, their remuneration and terms and conditions of employment are to be determined or varied by the Minister.
They said that the Minister is required to consult with the trade union, which represents the majority of officers or class of employees, and the Corporation in setting the terms and conditions of employment.
The forensic auditing team noted, however, that except for the position of the Managing Director, this requirement has not been complied with. In this regard, the auditors highlighted that Singh took it upon himself to establish the remuneration packages for other levels of employees. The auditors said that Singh acted ultra vires – that is, outside of his legal power.

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