Auditor General report leaked
The latest report from the Auditor General’s Office has been leaked ahead of its official release on Wednesday.
The latest report covers what’s become known as the Cohen and Company fiasco.
Government was seeking to get financing from the New York-based company to cover recurring expenses and government projects. In doing so, the Honourable Premier and Minister of Finance, McKeeva Bush, overrode the Central Tenders Committee in favour of Cohen and Company.
That move was not in keeping with the Public Management and Finance law, something the Premier has admitted, but he touted savings for government in the order of $24 million over the 15-years the loan would cover.
While government eventually backed out of that deal with Cohen and Company, there were two short-term loans arranged by the New York firm.
The yet to be released report says the arrangement cost the government more than $854,000 in financing fees –nearly half a million more than a previous proposal negotiated through Royal Bank of Canada and FirstCaribbean International Bank –both operating in Cayman.
Full details are expected Wednesday when Auditor General Alastair Swarbrick officially releases his findings, which will also cover the CCTV contract and Jazz Fest 2009.
Cayman 27′s Ben Meade reports.