From left: Davies, Latibeaudiere and CampbellGarwin Davis, Staff Reporter
WESTERN BUREAU:
A scorching trail of mismanagement at Caymanas Track Limited (CTL) has been revealed in a report from Bank of Jamaica Governor, Derick Latibeaudiere, to Finance Minister, Dr. Omar Davies. The report, which has not been made public, has direct input from the Auditor-General, Adrian Strachan, and audit firm PriceWaterhouseCoopers.
According to the audit, while embattled General Manager, Rose Campbell, was a director at CTL, a company she operated presented nine bounced cheques totalling $2.1 million to the horse racing body between the period of 1996 and 1999.
On that matter the Auditor-General wrote, "It is disturbing that a firm - the principal of which was a director at CTL should have issued so many bounced cheques." However, the Latibeaudiere report indicates that Ms. Campbell has since made restitution.
The Auditor-General also raised concern over what he said was the free handover of money, nearly one million dollars, by CTL to "causes associated with politicians and political parties."
He noted further that the questions which arise "are what criteria and basis were used in approving such contributions; what benefit does CTL derive from such payments," he asked. "It is my view that such contributions do not represent an appropriate use of the resources of a Government company and should be discontinued."
Mr. Latibeaudiere was also very harsh on the CTL board, particularly those that had voted to sack Ms. Campbell. "Of the 16 allegations brought against the CEO, the majority was unsubstantiated," he wrote. "The facts suggest but do not prove that there was an underlying unknown factor which may have influenced the directors in their course of action. The best interpretation was that the new directors were overzealous in carrying out their duties. They were also naive in matters of corporate governance, particularly as it relates to a company owned by the public sector."
But while recommending that Ms. Campbell should be reinstated, the Central Bank Governor also said that the board members who voted to fire her should not be removed from their positions.
He, however, pointed out that Ms. Campbell was not yet entirely out of the woods, noting that "I am cognizant that there is an outstanding management audit that will point to areas in need of improvements in the management structure." He added, "I am of course unable to state whether that report will reveal other grounds, which may warrant the CEO's dismissal.
"I have considered both the specific circumstances referred to me as well as what I consider to be the broader interest of the racing industry. The fact is that CTL has a number of structural weaknesses both at the management and board level. The full recommendation, in my view, will create the framework for the board and management to move the company forward on the assumption that all persons have the company's best interest at heart."
The CTL board, over two months ago, voted 5-3 to dismiss Ms. Campbell for alleged "irregularities." Dr. Davies, on the advice of CTL Chairman, Howard Hamilton, however, intervened and ordered the Latibeaudiere investigation.
The BOJ Governor reported that the board should be retained. "Having considered all the circumstances I have not seen any evidence to prove that the new directors act maliciously," he noted. "I am therefore of the view that if all parties are committed to the future of racing then these individuals should continue to serve on the board."
Last week, the Finance Minister asked the entire CTL board to resign, despite Mr. Latibeaudiere's recommendations.
Dr. Davies' rationale, according to a letter, sent to the board members, is that CTL head Mr. Hamilton had tendered his resignation and he (the Minister) would like the opportunity to restructure a new board.
