The Office of the Auditor General has reported that requests were made for any evidence to show that the Static Marine Platforms supplied by EZ Shipping were used beyond 25 November 2020, however, no such evidence was received up to the point of completing the audit into that matter.
The audit report further found that despite all three contracts with EZ Shipping providing for the agreement to be terminated by either party by giving 48 hours written notice of termination, or two days’ remuneration in lieu of notice, this was not done.
In a document entitled “Report of the Auditor General on the COVID-19 Border Security Contracts for Static Marine Platforms [COI R23]”, the Office of the Auditor General detailed its findings surrounding those contracts.
That included a conclusion that “payments made to EZ Shipping covered two months when the barges were not used” while “incorrect information was provided to the NSC and Cabinet to facilitate approval of the contracts and support unearned payments of more than $700,000.”
The report claims that in correspondence to the then Financial Secretary Jeremiah Frett on 26 March 2021, Commissioner of Customs Wade Smith “asserted that the barges were used from ‘September 2020 to January 2021’.”
“In the same correspondence Mr Smith refused to sign the certificate on the payment voucher to confirm that the barges had been used during the period 23 December to 22 January for the last contract”, the report added.
The report supports assertions that the vessels were not in use after November 25th by exploring Customs mobile vessels logs and platform logs.
“The platform logs and Customs staffing schedules show that use of all three barges was discontinued in November 2020. Use of Midnight Chief ceased on 15 November 2020, Midnight Czar on 21 November 2020, and Midnight Stone 25 November 2020… the mobile vessels logs which show that no officers were transported to the platforms after the dates indicated above”, it said.
Further, the supervising officer for the barges is said to have confirmed that no roster was prepared for the barges after 25 November, and no officers were assigned.
Despite this abrupt stop, auditors were unable to find any information on why the usage of the barges ceased, or any instruction for the discontinuance.
The report says that while platform logs confirm that the barges were used for the full period of the first contract (23 August to 22 October 2020), this was not the case for the subsequent contracts which were also paid in full.
Auditors found no correspondence on file between the Commissioner of Customs, the barge owners or the Financial Secretary regarding the extension of the service beyond the first contract.
Despite that, use continued for about another month beyond the contract period (23 October to 25 November 2020).
The report states that more than a month after use of the barges had stopped, the Premier at the time, Andrew Fahie, submitted a paper to Cabinet requesting that a contract be issued to EZ Shipping for the period 23 October to 22 December 2020.
“The paper stated that ‘The platforms have and continue to function as strategic outpost locations from which Her Majesty’s Customs or RVIPF Marine vessels are rapidly deployed to intercept suspicious maritime activity’, this was not the case”, the report outlined.
The period in question included 4 weeks when the barges were not used.
Nonetheless, a full payment of $840,000 was made under the second contract.
Auditors found the third contract, for the period 23 December 2020 to 22 January 2021, of particular concern.
“The information paper to continue EZ Shipping services was sent by the Premier for approval to the NSC on 10 February 2021 and to Cabinet on 15 February 2021. Almost three months after the JTF stopped using the barges. The Cabinet Paper contained the same incorrect narrative that the platforms were in use and vessels were being launched therefrom”, the report stated.
Auditors say that this paper was submitted without any accompanying report from Customs or the JTF requesting the continued use of the barges, and no correspondence to or from EZ Shipping regarding a change in terms.
Notwithstanding that the contract was approved for the payment of $360,000 in full for the use of the barges, which had long been abandoned.
“The continuation of EZ Shipping’s services under two additional contracts occurred without any formal request or report on the functioning of the platforms from the JTF. The information papers submitted to NSC and Cabinet contained the same misinformation regarding the service. They claimed that the platforms were being used by Customs and Police to launch vessels, which was not the case, and more significantly that the platforms were in use for December 2020 and January 2021 when they were not. This led to contracts and payments for a service that was not received”, the report stated.
