Spotlight on Deidrick’s stewardship
Published:Saturday | July 1, 2023 | 1:35 AM
Audley Deidrick could be placed under intense scrutiny for his failure as accounting officer to prevent breaches that occurred when the Airports Authority of Jamaica (AAJ) and Norman Manley International Airport Limited (NMIAL) head made investments in FirstRock Capital Investments Limited.
Integrity Commission (IC) Director of Investigation Kevon Stephenson recommended that permanent secretary in the Ministry of Transport conduct a comprehensive review of Deidrick’s “conduct and stewardship and take such action as may be necessary and appropriate in all the circumstances of the instant case”.
Deidrick is the head of both the AAJ and NMIAJ.
Stephenson said that the decision of the AAJ board to invest in FirstRock Capital Holdings Limited by way of private placement without first obtaining the approval of the minister of finance was a violation of the law.
The director of investigation said that the AAJ and NMIAL each acquired 14,259,000 shares in FirstRock Capital Holdings Limited during the period February 2019 to January 2020, at a cost of US$1,499,972. The total value of the shares acquired by the group was us$2,999,944.
In an investigation report tabled in the Senate on Friday, Stephenson said that he had seen no evidence to suggest that Deidrick, in his capacity as accounting officer, made any attempt to advise the board on appropriate financial procedures in relation to the companies’ investments in FirstRock Capital Investment Limited or to enforce the provisions of the relevant policies or legislation.
The director of investigation concludes that the entity’s AAJ/NMIAL accounting officer failed to discharge his duties under the Financial Audit and Administration Act.
Comprehensive review
The IC also recommends that the financial secretary and or the minister of finance cause a comprehensive review to be undertaken of the sums spent to acquire shares in FirstRock to determine whether the investment was financially prudent and whether value for money was obtained.
Stephenson recommended that where it is found that the Government suffered loss owing to a breach of fiduciary responsibility on the part of the accounting officer and the board of directors, that the appropriate sanctions be imposed.
It was concluded by the commission that the then board of directors “deliberately violated the Airport Authority Act and the group investment policy”.
Stephenson said that this conclusion was supported by Deidrick’s own admission that having recognised that the company’s policy did not permit private placements and initial public offering, the board directed that the guidelines be amended to cover them in consultation with the finance ministry.
“Notwithstanding, the AAJ board approved and made the referenced investments prior to the necessary amendments and approval being made and obtained respectively,” the commission added.
The director of investigation said that checks should be made to ensure that directors who were negligent in carrying out their duties as members of the AAJ and NMIAL boards do not ever serve on other public boards.