GOVERNOR John Freeman has stressed the need for bonafide evaluations of statutory bodies in the Turks and Caicos Islands.
The Governor in a release issued on Wednesday (April 5) highlighted the need for more transparency and accountability as it relates to the function of statutory boards.
This comes as a recent report on the management of the National Health Insurance Board (NHIB) was submitted to Cabinet by the Chief Internal Auditor.
The Governor said: “In December 2016 I commissioned the Chief Internal Auditor (CIA) to conduct a review of the management of the NHIB in light of the serious issues involving significant liabilities that had arisen earlier that month.
“The report by the CIA has since been considered in Cabinet, most recently following receipt of responses from the NHIB.”
Governor Freeman asserted that the report serves as a reminder of the important responsibilities placed on the boards of statutory bodies.
He said that responsibilities are especially weighty on boards such as the NHIB, where they are responsible for very significant financial resources with contingent liabilities for the public finances.
He disclosed: “TCIG transfers over $45 million each financial year to the NHIB in respect of payment of the TCI Hospitals infrastructure costs, the Treatment Abroad Programme and Contributions for Wards of the State.
“This accounts for a significant proportion of TCIG’s overall expenditure costs and along with the contributions of residents across TCI requires prudent management and accountability.”
Governor Freeman propounded that given the considerable financial impact statutory bodies can have on the TCIG budget, it is crucial that CEOs and senior management recognise their responsibilities in adequately providing oversight and management over these entities.
He noted that: “Board members must be prepared to carry out the required governance and performance monitoring activities needed to ensure effective management of these entities.
“By extension, CEOs and other senior management officers must be prepared to be held accountable for management shortcomings.
“The object lessons from the NHIB are particularly acute: it is not beyond the realm of possibility – as I have illustrated – that serious mismanagement of the NHIB or of certain other boards could cause a serious run upon the budgetary resources of TCI.”
The Governor further noted that the need to address the issues raised as it relates to the NHIB is evident and is now being taken forward.
He said: “But I believe they also reinforce the need for a proper review of the statutory bodies, especially of those which carry the largest risks, managerial and financial but also reputational for TCI.
“The Premier and I are committed to setting such a wider review in train as soon as possible.”
In December 2016, news broke that funds have been misappropriated at the NHIB.
Then PDM while in opposition had accused the PNP Government of covering up the state of finances of the NHIB, which was said to be in dire need of a financial bailout.
Cabinet statements indicated that the NHIB was hemorrhaging financially.
At that time, Leader of the PDM, Sharlene Cartwright-Robinson slammed the former Government for being negligent in relation to the financial affairs of the National Health Insurance scheme.
