Beautiful Virgin Islands

Tuesday, Mar 28, 2023

'You do a whole audit on EZ Shipping & you don’t interview' them?- Premier on AG Report

'You do a whole audit on EZ Shipping & you don’t interview' them?- Premier on AG Report

A Report of the Auditor General, Ms Sonia M. Webster on the COVID-19 Border Security Contracts for Static Marine Platforms [COI R23], has been criticised for lacking proper research and interviews by Premier and Minister of Finance, Dr the Hon Natalio D. Wheatley (R7).

The report detailed that on March 22, 2020, the Virgin Islands Government closed its territorial borders to incoming travelers as a precautionary measure to control the spread of COVID-19.

Barges used during COVID-19-induced border closures

It added that during the COVID-19-induced border closures, law enforcement agencies were faced with challenges in monitoring unauthorised and illicit activity along and inside the territory’s marine borders. It said this was due primarily to limited resources.

The report further detailed, “On 6 May 2020, the Government received an Unsolicited Proposal from Clyde Chalwell of EZ Shipping Ltd in which he offered to let two of his barges to the Government as marine radar platform to assist with the border security challenges at the rate of $17,000 per day."

The Auditor General disclosed that the Government paid $2.04 million to EZ Shipping Ltd for five months’ services under three contracts which covered the period August 23, 2020, to January 22, 2021. It added that EZ Shipping Ltd was paid a total of $738,000 for the period November 26, 2020, to January 21, 2021, when the barges were not being used by the Government.

Premier Wheatley, while debating the report at the Third Sitting of the Fifth Session of the Fourth House of Assembly in Road Town on February 21, 2023, said while he respects the office of the Auditor General, one of the biggest flaws with the audit report was that all the relevant parties, including that subject company EZ Shipping Ltd, were never interviewed.

“You do a whole audit on EZ shipping, and you don’t interview EZ Shipping. Madam Speaker, I have a problem with that, that’s not the way you go about doing things,” he said, revealing that the proposal was not unsolicited but rather, the company was approached.

The Auditor General disclosed that the Government paid $2.04 million to EZ Shipping Ltd for five months’ services under three contracts which covered the period August 23, 2020, to January 22, 2021. It added that EZ Shipping Ltd was paid a total of $738,000 for the period November 26, 2020, to January 21, 2021, when the barges were not being used by the Government.

Members of NSC not interviewed - Premier

He added that reference was made to the National Security Council and said members were never interviewed.

The Premier added that it would have been useful to interview persons from the Council, given he also has disagreements with what the report stated and that the report is incomplete and show bias towards public opinion.

“I would say without a shadow of a doubt that there was a need to secure the borders and from my standpoint, the idea of barges is not a bad one,” he said while adding that the IV’s borders are large and porous.
Vessles owned by EZ Shipping. Premier and Minister of Finance, Dr the Hon Natalio D. Wheatley said while he respects the office of the Auditor General, one of the biggest flaws however with the audit report was that all the relevant parties including that subject company EZ Shipping Ltd was never interviewed.


Barges served purpose - Premier

“In fact, there was a proposal later, that the government should purchase their own barges or platforms. I don’t think it’s a bad idea, I think it’s one worth examining,” he added in highlighting that the Radar is also needed and that the use of the barges was justified contrary to the Auditor General’s report.

As it related to the cost of the project, Premier Wheatley said to the regular man, they don’t understand the cost of hiring barges and that even the cost of fuel for the use of barges can sometimes reach figures costing $22,500 per day each, which is much higher than the cost paid for the barges rented by Government.
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