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$20m salary blunder blamed on DGO, Finance Ministry

When a $20 million overspend on civil servants’ raises came to light last year, government leaders told an angry public that they didn’t know who to blame.

Now, Auditor General Sonia Webster has provided answers.

The Deputy Governor’s Office and the Ministry of Finance, she found, failed to give Cabinet a full and accurate picture of the true cost of the 2024 salary increases — despite early warnings that the final bill could be nearly three times higher than the estimate provided by consultant PricewaterhouseCoopers (PwC).

Ms. Webster’s May 27 report, which was laid in the House of Assembly on Tuesday, criticises the offices for withholding or downplaying crucial information before lawmakers approved the budget in December 2023.

The result was a shortfall of more than $20 million, which Premier Dr. Natalio “Sowande” Wheatley’s government had to plug partly through a Schedule of Additional Provisions passed last year.

“There were indications that the cost of the implementation would be substantially higher than the consultants’ estimates, but this information was not presented when the decision was brought before Cabinet,” Ms. Webster wrote in her report.

She added that the “absence of a reliable, independent estimate” was a key factor in the overspend.

Auditor General Sonia Webster
Auditor General Sonia Webster
Missed warnings

The report reveals that the Ministry of Finance’s Budget Unit warned as early as October 2023 that the new salary regime could require $25.5 million in extra salaries plus $2.2 million in statutory contributions such as payroll taxes and social security fees — almost triple the $9.4 million estimate provided by PwC.

But this higher figure, Ms. Webster wrote, was not included in PwC’s report the following month — and it was never disclosed to Cabinet.

“The Deputy Governor’s Office advised that they did not make the disclosure because the [Finance Ministry’s] amounts were not definitive,” Ms. Webster wrote. “We received no indication that the DGO requested a more definitive estimate to support the PwC amounts.”

Instead, Cabinet proceeded with PwC’s lower figure — even though the consultant’s report cautioned that its estimate should be quantified by the ministry — and lawmakers approved a budget with $11.7 million earmarked for increases to salaries and corresponding taxes.

By August 2024, Mr. Wheatley was forced to acknowledge the shortfall in the House of Assembly, triggering opposition calls for this resignation.

PwC assumptions

Ms. Webster also reviewed PwC’s analysis, finding that it relied on inflated staff numbers — using 3,665 authorised positions when only 2,497 were filled — and assumed that all staff would be placed at entry-level steps on the new salary scale.

This combination led to the projection that understated the cost by about $20 million, she explained.

“The variance between PwC’s projections and the actual figures stemmed from differences in staff numbers and, to a lesser extent, their placement within the salary grades,” Ms. Webster wrote.

PwC’s estimates, however, were not the root cause of the overspend, according to the report.

“While the PwC computations were based on the information provided and included a request for verification by the Ministry of Finance, the absence of a reliable, independent estimate to support the figures contributed to discrepancies between projections and actual expenditures,” the auditor general wrote.

“There were indications that the cost of the implementation would be substantially higher than the consultants’ estimates, but this information was not presented when the decision was brought before Cabinet.”

Though funds to cover the increases were eventually found across multiple line items in the budget, the auditor general also highlighted a lack of transparency in the allocation process.

“Increased emoluments were provided for within the initial 2024 authorised budget without full explicit disclosure of the actual cost,” she wrote. “This ensured that the increases were covered financially, but subsequently led to concerns about fiscal transparency and public accountability in the House and the broader public.”

Recommendations

To address the issues she found in her review, Ms. Webster recommended that the Deputy Governor’s Office and Ministry of Finance explain why higher cost estimates were withheld from Cabinet and the HOA.

The Governor’s Office told the Beacon yesterday that Governor Daniel Pruce had written to Deputy Governor David Archer Jr. and Financial Secretary Jeremiah Frett “in response to recommendations made following the audit.”

The DGO told the Beacon that the DGO and the Ministry of Finance were in the process of completing their submission to the governor.

“The Office of the Deputy Governor also takes this opportunity to encourage members of the public to carefully read the report and its contents,” the DGO stated.

“Specifically, the Office of the Deputy Governor would like to further publicly erase, as is clear in the auditor general’s report, any innuendos or suggestions that through the implementation of this project, funds were misappropriated or missing as a result of the compensation review.”

The DGO added that sections 44-47 of the audit report make “clear” that “sufficient funds were made available to cover the actual expenditure of the salary conversions for public officers, which considered further adjustments for increment payments and related arrears.”

The office also noted its “commitment to transparency and accountability” in the public service.

Before the compensation review, the DGO added, no such exercise for the public service had been undertaken for more than 20 years.

Political fallout

Despite the DGO’s reassurances, the report’s findings are likely to fuel an already heated political debate.

After the overrun came to light last year, opposition member Myron Walwyn labelled the discrepancy a “$20 million mistake” and demanded Mr. Wheatley’s resignation as finance minister. Opposition member Stacy Mather, meanwhile, called for a public apology.

Other members of government, however, defended the premier, arguing that Ms. Webster’s investigation should be allowed to run its course before assigning blame.

Mr. Wheatley and other HOA members did not respond individually to requests for comment, but the HOA released a general statement about Ms. Webster’s report.

“With the report now officially before the House, members will undertake a thorough review of its findings, engage in detailed discussions, and provide a formal response consistent with established parliamentary procedures,” the HOA stated. “The House reiterates its dedication to transparency, accountability, and proper due process.”

PwC did not immediately respond to requests for comment.

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‘Dinner of Champions’ Honors Local Luminary and 19 Other Top Names in News Along With an Actor Who Portrays Them

New York City’s 1200-seat grand ballroom at Gotham Hall, one of the city’s most elegant venues, was overflowing with hope, humor and celebration Monday night as the non-profit Investigative Reporters and Editors organization celebrated 50 years of training and supporting journalism.

IRE honored 20 journalists who, over six decades, uncovered criminal activities at the highest levels, covering everything from unsafe products to wars, natural disasters, school shootings, and much more. IRE also honored Michael Keaton, dubbing him a “Champion of Investigative Journalism” for his role as Walter “Robby” Robinson in the 2015 Oscar-winning biographical film “Spotlight,” which dramatized the story of the Boston Globe’s award-winning investigative team that exposed child molestation by priests and its cover-up by the Catholic Archdiocese of Boston.

Among the honorees was journalist Melvin Claxton, whose 10-part series “Virgin Island Crime: Who’s to Blame?” was awarded the Pulitzer Prize in 1995. He was handed the award by Judy Woodruff, yet another public-spirited reporter and trailblazer dedicated to building unity while fearlessly exposing the demons of divisiveness along the road.

Another series by Claxton, this time on the criminal justice system in Detroit, was a finalist for a Pulitzer Prize for Public Service in 2003. Claxton, born and raised in Antigua, attended the now-University of the Virgin Islands in the 1970s at a time when it was known as the College of the Virgin Islands,  has won a number of national reporting awards and his work has been honored several times by the Associated Press.

The IRE anniversary celebration, hosted by CBS “60 Minutes” correspondent Scott Pelley, divided the evening’s honorees into five decades in which their work changed the playing field, even as the field’s parameters expanded.

The decades were segmented by brief intermissions and a variety of presenters, including Woodruff, Paul Sagan, chair of ProPublica and A/G.Sulzberger, publisher and chairman of The New York Times. Each honoree was introduced before taking the stage by a short pre-recorded video highlighting their most notable works and made their remarks in advance of the celebration.

Here is the breakdown of these esteemed guardians of democracy, with links to detailed information about their accomplishments, along with their bios.

The 1970s: The Birth of Modern Investigative Reporting:

Carl Bernstein, Bob Woodward, Renee Ferguson, Lowell Bergman

1980s: The Emergence of Data and Consumer Investigations:

Brant Houston, James B. Steele, Lea Thompson

1990s: “David vs Goliath”:

Melvin Claxton, Alexandra Xanic, Phil Williams

2000s The Growth of Nonprofit Investigative Journalism:

Sheila Coronel, Alberto Ibargüen, Paul Steiger

2010s: Investigating sexual assault and a sparking a cultural reckoning

Julie K. Brown, Jodi Kantor, Marisa Kwiatkowski, Megan Twohey

2020s: Collaborations Speaking Truth to Power:

Ken Armstrong, Randy Aronson-Rath, Manny Garcia

After five decades of prize-winning reporters and editors being deliciously served up by the bevy of equally resolute journalism icons, dinner was served, after which an auction was held before what might be called the Headliner was introduced to the stage by the real-life reporter Sacha Pfeiffer, who was played by Rachel McAdams in “Spotlight,” the film.

Keaton admitted that as a kid, he wanted to be a reporter. “Sports,” he said. Though a different role was to be his ultimate calling, he was fulfilled by portraying the real-life heroes he was honored alongside Monday night. Along with Globe editor, Walter “Robby” Robinson, Keaton played another real-life newsman, Robert Weiner, in the 2002 HBO docudrama “Live from Bagdad,” which was based on Weiner’s book by the same name. The story recounts Weiner’s experiences as the producer of the CNN team in Baghdad, the only Western journalists in Iraq during the Gulf War, covering the crisis and the war itself from inside the enemy capital.

In 1994, Keaton played Henry Hackett, the fictional editor of a struggling New York tabloid, in “The Paper,” a comedy covering the reality of 24-hour print deadlines to “get the story out,” before the days of the internet.

As he began his acceptance speech, Keaton said, “As much as I might have disagreed with him … well, actually did disagree with him…you have to remember two things, “Charlie Kirk had a wife,” he said holding up one finger and “two children,” he added holding up two fingers.

Later, he would go on to address the importance of laughter at a time when journalism is figuratively and literally under fire across the globe.

Before the humor, though,  Keaton spoke of the 1970 Kent State massacre, when National Guardsmen opened fire on unarmed students protesting the war in Vietnam, killing four and wounding nine, which deeply affected him and other students who attended the Ohio University. Keaton entered Kent State a year after the shattering event, where he majored in journalism and speech.

He followed the Kent State reference masterfully, underscoring our common humanity with a story about hitchhiking “back in the days when you could” from Ohio to Washington to attend another peace rally. “A guy picked me up and we talked guy stuff,” he said, “probably girls and music and stuff.” As he was getting out of the car, he asked the driver why he had come to D.C., “I’m a National Guardsman.”

“He was going down to keep the peace, and I was going down to march for peace… We weren’t that different really.”

He ended his remarks, saying, “Follow the funny people,” referring to the late night comedy talk show hosts like Jon Stewart, Stephen Colbert and John Oliver, “while they’re still there” he trailed off, clearly referring to Colbert being canceled as the FCC was approving a heretofore unheard of merger between three media giants, including CBS, all owned by Larry Ellison, considered to be one of the top three wealthiest men in the world.

Keaton said, there’s nothing worse for a dictator than to be laughed at, making a reference to “Springtime for Hitler,” a fictional musical play within a play in Mel Brooks’ 1967 Oscar-winning satirical comedy, “The Producers.”

“They are powerless to do anything about it, being laughed at,” Keaton said with a relatively straight face.

Between the sponsorships and the auction, including a matching grant of up to $150,000 from the Knight Foundation for direct donations during the event, the first-ever IRE anniversary gala raised $1.5 million for the non-profit.

In a chance moment before the official opening of the gala, this reporter was able to catch Pelley, as he was making his way to the makeshift backstage before offering his opening remarks.

“What are you going to do?” I asked without any further introduction as I caught up with him and stuck out my hand.

He grabbed my outstretched hand and met my eyes.

“We are going to launch our season,” he said, as a grim look of determination erased the bright smile he had briefly greeted me with, “and see what happens.”

Table 12, where I was seated with Claxton, was also graced by CNN’s Wolf Blitzer, host and later co-host for 35 years of “The Situation Room.”  Along with many other notable journalism accomplishments.

When I asked him, among other things, “What are we going to do?” he answered, “Keep reporting.”

As for Claxton, who was the reason I was at Gotham Hall on Monday, he said he was looking forward to getting back to Detroit in the morning to put the final touches on his latest writing project: The Itty Bitty Book app, which enables children and young people from five to 17 to write, illustrate and publish their own books. After years in the making, the finish line is in sight.

And after that, I asked.

“We’ll see what happens,” he answered.

At the very least, every child on the planet will have the opportunity and means to tell their stories, and to sell them through an online bookstore Claxton should have open in the next month or so, thanks to his efforts to give literacy, storytelling, and peace a chance.

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