PwC report shows governance & payroll irregularities @ BVITB
Covering the period 2014-2018—the findings point to irregular salary increases, unaccounted allowances, and inadequate adherence to local labour laws.
The PwC’s investigation—commissioned to assess the fiscal standing and internal controls of the BVITB—highlighted a range of issues including irregular salary increases for staffers, among other damning revelations.
Unexplained & Continuous Salary Increases
The findings revealed that eight employees, including senior staff, received unexplained and continuous salary increases during the review period, even amidst the 2017 hurricanes that severely impacted the tourism industry.
The PwC report documented, for instance, that Ms Natasha J. Chalwell’s salary jumped from $72,615 in June 2014 to $80,000 by November 2015, well ahead of her documented salary review date in 2016.
To this end, PwC reported candidly, “We were not provided with performance appraisal forms or Personnel Action Forms (PAFs) to justify these increases”.
Mr Iverson Smith, the report also outlined, retired in June 2015, but continued to receive a salary until 2018 with management claiming he worked part-time post-retirement. PwC said, however, it found that no contract was provided to support this extension.
“We requested supporting documentation for Mr. Smith’s continued payments post-retirement, but no evidence of a formal contract or agreement was provided,” PwC stated.
Additionally, the report flagged allowances exceeding $10,000 paid to five employees, including Mr Smith and Ms Sharon P. Flax-Brutus, without proper justification. PwC highlighted, “We saw no evidence to support the successful completion of performance goals and objectives for these employees.”
Outdated HR policies found
In its report seen by this publication, PwC reported that the BVITB’s human resources policies were inconsistent with the Virgin Islands Labour Code of 2010 and that the employee handbook did not address critical areas such as work permits and discrimination.
According to PwC, “The BVITB’s Human Resources policies are outdated and fail to align with the statutory requirements of the Virgin Islands Labour Code.”
Meanwhile PwC also poignantly noted, that out of 31 employee files reviewed, performance appraisals were partially available for only nine and as such remarked, “The lack of performance evaluations raises concerns about the basis on which salary increases and allowances were granted.”
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