By Balford Henry, News Editor 
Dr. Audia Barnett, executive director of the Scientific Research Council
(SRC) explaining to Jamaica Agricultural Society (JAS) President, AA Bobby Pottinger
(left) and Dr. Omer Thomas, board member, some of the Council's newly developed
products of interest to farmers during yesterday's monthly board meeting of
the Society at its head office, Church Street, downtown Kingston. - Norman Grindley
/Staff Photographer
BOTH THE Jamaica Agricultural Society (JAS) and the Four-H Clubs have pleaded ignorance of the need for Ministry of Finance approval for expenditures for which they were criticised by the Auditor General and the Public Accounts Committee (PAC) in Parliament on Tuesday.
"This is something new to us that when we are spending our own funds we have
to get approval from the Ministry of Finance," JAS President, AA Bobby Pottinger,
told yesterday's monthly board meeting.
He said that the JAS board had approved an increase in salary of a former CEO on the basis that it was being paid from their own earnings. However, he admitted that since becoming aware of the requirement, contact has been made with the Ministry of Finance and approval has been received, retroactively.
He explained that the $500,000 mentioned in the AG's report was a salary incentive paid to a former CEO given the additional job of developing the commercial arm of the JAS.
Head of the 4-H Clubs, Senator Norman Grant, told the same meeting yesterday that in terms of his organisation, their motor vehicle loans scheme, which was also criticised in the report as lacking Ministry of Finance approval, was operating since 1997, prior to his chairmanship. But, he felt sure that if the board knew then that the Ministry's approval was necessary, it would have sought it.
"My research tells me that it was a scheme that was introduced to motivate staff, as it relates to providing motor vehicles for them. The maximum per staff was $200,000, although there was one occasion where a staffer was loaned $300,000. They are charged an interest rate of 10%. Up to date, the total number of staff who have received loans under that scheme is 20. The total sum that has been disbursed is just over $4 million. The amount outstanding is only $120,000."
On the issue of security, he said that renumerations were used to collaterise the loans.
"The loans were fully collaterised, as far as we are concerned, and it has been working very good as an additional incentive for staff of the 4-H Clubs and over the past years we have increased membership from 23,000 to 43,000," he added.
Senator Grant said that he had instructed the executive director of the 4-H Clubs to, immediately, contact the Ministry of Agriculture and, in collaboration with them, present the scheme to the Ministry of Finance for approval.
"We believe that because of what it has done for staff and the level of repayments, I feel confident that the Ministry of Finance will give favourable hearing to it," Senator Grant said.
The Auditor-General's annual report had raised the issue of the JAS increasing the salary of its former CEO by $500,000 per annum. A statutory body, the JAS is obliged by law to follow the directives of the Ministry of Finance. The increase should have had the approval of the Public Sector Establishment Division (PSED) of the Ministry.
In relation to the motor vehicle loan scheme of the 4-H Clubs, the Auditor-General had commented that no Board or Ministry of Finance approval was seen for the setting up of the scheme. He also said that there was no evidence that the loans were appropriately secured to protect the interest of the Jamaica 4-H Clubs.
