REPORT SAYS LACK OF CONTROLS LED TO ABUSES OF COVID-19 ASSISTANCE GRANTS

The recently released “Report on the Examination of the House of Assembly’s Covid-19 Assistance Grants” has uncovered troubling findings regarding the distribution and management of the grants. The report highlights that the Covid-19 pandemic had a severe impact on the territory’s most vulnerable citizens, leading to the formulation of the HOA Assistance Grants initiative. The aim of this initiative was to address the immediate and urgent needs of those who experienced hardship due to the pandemic.

However, the report reveals that the absence of proper controls in the program resulted in multiple abuses and the allocation of public funds to unqualified applicants. The audit review found a general lack of adherence to the program’s guidelines, indicating significant flaws in the distribution process. Some key issues highlighted in the report include:

a. Approval of grants without sufficient documentary evidence of genuine need or the impact of COVID-19 on the applicants.

b. Lack of a tracking mechanism to prevent multiple awards to a single applicant, resulting in numerous duplicate payments.

c. Failure to identify and refer applicants to other Covid-19 programs better suited to address their specific needs, exacerbating the problem of multiple awards and abuse.

d. Non-adherence to the requirement for the Financial Secretary’s review and approval of exceptions to the program, particularly applications exceeding $5,000. Only four such payments were reviewed by the Financial Secretary, all relating to district/community projects.

e. Disregard for the requirement of transparency in payments to third parties, particularly for large sums paid directly to the applicant or supported only by a solicitation letter.

f. Non-compliance with Public Finance Management regulations in the procurement of services for district/community works.

Despite these serious shortcomings, the report acknowledges that the HOA Covid-19 Assistance Grants initiative did offer some assistance to individuals facing financial hardship due to the pandemic. However, there were instances where applicants exploited the program to obtain funds for personal gain or without genuine need.

The report also highlights the management structure of the program, which was led by the Clerk but driven by the Representatives. Limited time and resources in this environment may have contributed to inadequate review of applications and non-compliance with guidelines.