Civil servants are being punished for financial impropriety, states Scott
Suggestions that public officials have not been held to account over the abuse of taxpayers’ money have been dismissed by Cabinet Secretary Donald Scott.He said sanctions, including surcharge and dismissal, have been applied in spite of Auditor General Heather Matthews’ claims that nobody has the fortitude to hold civil servants accountable.Former Works and Engineering manager Kyril Burrows and his wife Delcina Bean-Burrows were found guilty earlier this month of stealing more than $540,000 from the public purse between 2005 and 2009.Shortly before they began committing that fraud, Burrows admitted abusing his Government credit card to steal more than $30,000 worth of personal items, but was not fired or charged with any offence.Mrs Matthews says nothing less than a repayment of all funds and dismissal over that incident would have sufficed.She said the recent Supreme Court trial highlighted once again her belief that civil servants will continue to break Financial Instructions as long as they’re not held accountable.Mr Scott replied in a statement: “The Auditor General has been reported as calling into question the action taken to hold civil servants who abuse standing Financial Instructions accountable for their actions.“The reported comments contain a number of broad and emotive statements which, taken together, suggest a lack of integrity within the Civil Service and poor governance.“Nothing could be further from the truth. The vast majority of Bermuda’s public servants are honest and have high integrity. No doubt they too are equally appalled by the illegal actions of the disgraced and former civil servants who were convicted in the case in question.“It is false to say that in the past persons in the public sector have not been held to account. There is a scale of increasing sanctions under Financial Instructions (including surcharge and dismissal) and these have been applied and continue to be applied.“Financial impropriety is a distasteful and reprehensible matter that can have a devastating effect on an organisation. It sometimes can tarnish the image and reputation of the entire organisation. There is an African proverb that captures this debilitating impact, ‘One falsehood spoils a thousand truths’.”Mrs Matthews has noted how, despite Premier Paula Cox’s repeated pledges that she is committed to good governance, those who turned a blind eye to Burrows’s actions remain in senior positions in Government.She says Ms Cox, as Finance Minister, already has the power to bring charges against any government officer responsible for improper payment of public money.Shadow Attorney General Trevor Moniz has said there’s no point introducing new good governance legislation if the existing rules are not enforced.Mr Scott responded: “Government has done much over the course of the last several years to strengthen the protection of public funds through the Good Governance Act, and the Office of Project Management and Procurement.“Whistle-blowing provisions exist and have been proved to be working. Whilst not playing down the seriousness of the individual case it did occur before such measures were introduced.“Non-partisan observers will see that Government’s actions have been ever-vigilant in minding the public purse in accordance with the core values of accountability, transparency, prudence and fairness.“It is not helpful, constructive or appropriate to discuss matters of internal discipline in the media when these may be subject to ongoing investigation. Any concerns that the Auditor General might have would be best directed to the Financial Secretary or to Cabinet Secretary.“In a democratic community like Bermuda where there is separation between accuser, judge and jury, this is only fair to protect both the rights of the individual and the administration. Indeed it is possible that such matters if discussed publicly may in fact impair future legal action, should that be deemed necessary.”Meanwhile, Financial Secretary Anthony Manders said it would be appropriate to review Financial Instructions in the light of lessons from the Burrows case.He said efforts have been made to step up financial controls, such as placing qualified accountants throughout Government at the departmental or Ministry level, and putting more resources within the Accountant General’s Department.“Change is not just pending. Change has come and the Government has a determination to make a difference in its operating procedures,” said Mr Manders.“Regrettably, such controls cannot, and throughout history have not, prevented dishonesty nor cured dishonest individuals. Indeed, Bermuda has witnessed a bevy of different cases of dishonesty in retail, banking and within families in most recent times.“The internal control regime has changed and now there are criminal offences created under the Public Treasury (Administration and Payments) Act for failures to heed financial codes of practice in government.“Going forward the sanctions for serious lapses in adherence to internal controls have been increased and censures will occur in the public eye when serious lapses are detected and there is a conviction in the courts.”
Union leader Kevin Grant warned a “do as I say, not as I do” attitude from those at the top discourages civil servants from adopting the principles of good governance.
Following high-profile cases of Government employees abusing public funds, Mr Grant called on Ministers and civil service executives to set a good example by following the rules themselves.
And he said rewards should be handed out as incentives for those who practise good governance, to try to improve the culture across Government.
“The enforcement of good governance is something that should be encouraged by the Government. However, it cannot happen if all stakeholders are not involved and playing their part,” the Bermuda Public Services Union president said in a statement yesterday.
“There are some significant factors that have an influence on good governance practices. It goes without saying that Ministers and civil service executives play a major part in maintaining and influencing a culture of good governance within the civil service.
“When high ranking officers pay attention to the practices of good governance, this concept and philosophy is passed on to supervisors.
“When supervisors are seen to be taking the lead in good governance then it is also passed on to employees. When good examples are displayed at the top, this permeates throughout the whole service.”
Mr Grant said employees may act inappropriately in response to poor treatment from their management.
“When rank and file employees think of good governance, the first thing that comes to their minds is how fair their employer (Government) is treating them,” he said.
“If it is perceived that they are not being treated fairly then unfortunately employees may seek some retribution from the employer by performing inappropriately and inefficiently within the workplace.”
Suggesting an incentive for good practice, he said: “One option to enforce good governance would be to reward those who practice and abide by the philosophy of good governance.
“This will show other employees that management holds good governance practises in high regard and will allow the culture to spread throughout the service,” he said.
“Conversely, when high ranking officers adopt the attitude of do what I say and not what I do, the response is negative rather than positive and this will have an effect on good governance.
“Another important factor that we must keep in mind is that when employees notice that management starts to pay close attention and have a genuine interest in the well being of the employees and community, this encourages positive attitudes and good governance within the workplace.
“However, if employees have a perception that management only cares for themselves, the reaction is more negative than positive.
“So it is very important that continuous dialogue takes place on the pros of good governance so that it is ingrained in the minds of all civil servants, thus prevalent throughout the service, where the acts of wrongdoing will stick out like a sore thumb.”
