No red flags at CMU during my tenure, ex-treasurer testifies

A former treasurer at Caribbean Maritime University (CMU) has testified that he saw no irregularities during his near four-year tenure at the institution.

The former executive also testified that he did not engage in any irregularities while handling the financial affairs of the east Kingston-headquartered institution between 2016 and 2020 and that the Ministry of Finance had no reason to question CMU’s financial integrity during the period.

The evidence came during cross-examination by Hugh Wildman, the attorney representing former CMU President Professor Fritz Pinnock, during the fraud trial involving former Education Minister Ruel Reid.

The former treasurer’s name is being withheld because Senior Parish Court Judge Sanchia Burrell, who is presiding over the trial, has asked the media not to disclose the names of witnesses, including those still to give evidence.

Pinnock is on trial for multiple fraud-related crimes in the Kingston and St Andrew Parish Court, along with Reid, Reid’s wife Sharen, and their daughter Sharelle, as well as Jamaica Labour Party-aligned Councillor Kim Brown Lawrence.

The charges are related to an alleged scheme used to siphon more than $25 million in public funds through fake jobs, sham contracts, and bogus invoices between 2016 and 2019.

More than 60 documents, including cheque payment vouchers, have already been admitted into evidence showing how Pinnock authorised millions of dollars in payment to Brown Lawrence, Devon McQueen, and at least four other persons “for the provision of meals” for students enrolled in a programme that targeted at-risk young people.

The ex-CMU executive identified the project as the Career Advancement Programme-Youth Employment Service (CAP-YES).

Responding to questions from Wildman, he said his “best estimate” is that there were “14 to 15” contractors who supplied meals and other items for CAP-YES students and that they were all paid in the same manner.

CMU-SUPPORTED INITIATIVES

He agreed with a suggestion by Pinnock’s attorney that both CAP-YES and another initiative, Career Advancement Programme (CAP), were both supported by CMU and the Ministry of Education.

“Would you agree that these programmes were formulated by CMU Council [the university’s governing body] in conjunction with the Ministry of Education”? Wildman questioned.

“The council was aware of these programmes,” the witness replied.

He noted that payments had to be made from time to time to persons engaged in the programmes.

“When payments are made, they are signed off by the various signing officers, am I correct”? the attorney continued.

“Yes, sir. They are approved by two signing officers,” the witness replied.

“And while you were handling the affairs of the university, you did not see any irregularity there?” the attorney questioned.

“No, sir,” the witness responded.

Responding to questions from Oswest Senior Smith, KC, the attorney for Brown Lawrence, the former executive agreed that he could not vouch for the accuracy of a 12-page document admitted into evidence in the trial showing the movement of funds into and out of a CMU account.

He testified that Brown Lawrence’s name appeared as the payee on eight pages and that her name was among several other payees listed throughout the document. The sums paid out to each payee are beside each name, the former CMU treasurer noted.

He said the name ‘Kim Brown Lawrence’ appeared under the category “student and staff assistance”.

“All her payments came under that category?” the presiding judge enquired.

“Yes, Your Honour,” the witness answered.

“Are you able to explain what that column was about?” Pinnock’s attorney questioned.

“It’s difficult for me to determine the basis on which these payments were categorised under student and staff assistance,” he replied.

The ex-CMU executive agreed, during questioning by Wildman, that Pinnock went beyond the call of duty to help with the development of CMU, testifying that in 2019, the university had annual revenues of $3.5 billion.

“I don’t recall that, but there was an increase in surplus,” the witness said when asked if CMU had a surplus of $2 billion in 2019.

He further testified that the university saw “increased visibility in the diaspora” from a contract it had with a female consultant and that the payments made to her did not result in any loss to CMU.

Senior Smith is slated to continue his cross-examination when the trial is resumed next Tuesday.

livern.barrett@gleanerjm.com