Private contractors not expected to know FAAA, court hears

Contractors who do business with the Government, as well as private-sector workers, are not necessarily expected to understand or comply with the Financial Administration and Audit Act (FAAA), a senior finance ministry official told the Kingston and St Andrew Parish Court on Monday.

The witness, a principal director within the Ministry of Finance who acknowledged that he is a functional expert on the operation of the FAAA, made the admission under cross-examination by defence counsel Oswest Senior Smith.

Smith represents Jamaica Labour Party Councillor Kim Brown Lawrence, who is one of several accused in a multimillion-dollar fraud case.

Brown Lawrence is charged alongside former Education Minister Ruel Reid, his wife Sharen Reid, their daughter Sharelle Reid, and former Caribbean Maritime University (CMU) President Professor Fritz Pinnock.

Prosecutors allege that the group conspired with others to defraud the Ministry of Education and the CMU of more than $25 million.

Brown Lawrence is accused of working with Reid and Pinnock to facilitate payments from the CMU and of receiving funds she knew, or ought to have known, were fraudulently obtained.

During questioning, the witness confirmed that while public-sector employees are typically familiar with the FAAA through training and self-study, private individuals or companies would not necessarily have knowledge of its provisions.

“A person or company outside of a ministry, department, agency, or public body may not necessarily fulfil the inner workings of these legislations or instructions,” he said under cross-examination.

He further explained that the legislation outlines how entities are funded, whether through the Consolidated Fund or via their own revenue-generating activities.

When asked whether a ministry can access funds from agencies under its jurisdiction, the witness said the Appropriation Act specifies the approved funding sources for each ministry in a given financial year.

“The ministries may be approved to receive funds from the Consolidated Fund or any other designated and approved sources, which are determined to be appropriations aid,” he said.

Under further cross-examination, the witness stated that he had not reviewed statements attributed to several individuals connected to the case, including Brown Lawrence, nor had he been asked to provide an expert opinion on their contents.

The official, who has worked at the ministry since 2009, first as a temporary administrator and later as a business process specialist, outlined his duties. These included training staff in the use of FINMAN, the government’s accounting system; reviewing financial management processes across public bodies; and assisting in the drafting of circulars and financial instructions issued by the financial secretary under the FAAA.

He explained that financial circulars provide guidance on the proper management of public funds and may clarify or supplement existing financial instructions. All such circulars, he said, are signed by the financial secretary before being issued.

ABSENT ATTORNEYS

The proceedings were adjourned early due to scheduling challenges caused by the unavailability of several defence attorneys, some of whom were engaged in High Court matters. While two lawyers present – Carolyn Chuck and Shannon Clark – indicated they had no questions for the witness, Hugh Wildman, who is representing Pinnock, and Linda Wright Ashley, who is representing Reid, were absent and asked for later dates.

Anthony Armstrong, another senior lawyer who is representing Reid, was also absent. Their junior, who was present but was not prepared to cross-examine the winess, was warned not to hold in the matter if he is unable to conduct a cross-examination for which he is duly trained and should be prepared.

Parish Judge Sanchia Burrell placed on record her dissatisfaction with Wildman’s behaviour. She noted that he did not communicate properly with the court about his intention not to attend. The court was only informed after one of his colleagues phoned him to find out whether he was attending.

She said that his disrespect has been flagrant and that he ought to be better with “basic manners” as he is a lawyer with years of experience, and the court has already spent a lot of time waiting on him.

She warned that the court would not tolerate further delays.

The matter is scheduled to resume on Friday.

tanesha.mundle@gleanerjm.com