PwC forensic audit lifts lid on dubious financial practices @ BVITB
According to a copy of the report seen by Virgin Islands News Online (VINO) PwC's investigation, initiated in October 2020, was also charged with examining BVITB’s fiscal practices and adherence to the Tourist Board Act, Chapter 280 Ordinance 1969, and reports limitations due to incomplete records.
"Certain information requested was not provided," PwC stated while emphasising that its analysis was based solely on the data supplied by BVITB representatives.
The review relied on electronic records, including emails stored on a Microsoft 365 server, but noted that relevant devices had been reassigned or reset but despite the identified constraints, PwC said it still managed to identify a plethora of notable concerns.
Unjustified Financial Adjustments
The investigation, for example, uncovered unexplained alterations to contractual terms with a local construction firm, Meridian Construction Company Limited, noting that correspondence from June 2017 revealed an increase in advance payment requirements from 10 percent to 20 percent of the contract value and a reduction in interim payment processing times from 28 days to 15 days.
PwC as such, highlighted the absence of justification for these changes, raising questions about oversight and transparency.
Conflict of Interest and Procurement Practices
The report also flagged potential conflicts of interest involving senior officials, such as Ms Sharon P. Flax-Brutus, who was the Director of Tourism in 2018. She was directly approached by BVITB staff to provide equipment through her rental company, Tropix Rentals.
According to the PwC report, while employees declared their business affiliations, it was noted that BVITB’s conflict-of-interest policies mandated employees to avoid situations where personal and professional interests could intersect.
Additionally, a series of emails revealed specific requests for tents and tables for BVITB events, with Flax-Brutus coordinating supply estimates. PwC, as such, cited the example as underscoring the importance of robust safeguards to prevent conflicts undermining trust in public institutions.
The PwC investigators also scrutinised email records using forensic software, revealing discrepancies in project management and financial oversight; For instance, correspondence in late 2017 indicated that payments related to specific contractors were paused pending structural assessments following a storm.
PwC reported however, it could not determine if these measures were followed through or if resolutions were reached with its findings pointing to a need for stronger internal controls, better documentation, and stricter adherence to compliance standards.
“Our work was limited to the specific procedures and analysis described herein,” the report stated, recommending that the Tourist Board enhance its governance frameworks to safeguard public resources.
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15 Responses to “PwC forensic audit lifts lid on dubious financial practices @ BVITB”
In answer to your question, probably little will be done, but I hope not little, but big.
As usual nothing, every one who has done wrong will be protected as per usual, no accountability.
BVI is too small, with far too limited resources, to operate with such tunnel vision. We are hanging our own people trying to implement laws that bigger countries require and have the resources to cope with.
From what I have read, these stories really haven’t exposed any crazy corruption or financial misdeeds.