AuG recommends ODPEM, its parent ministry and Financial Services Institution establish timelines and monitoring mechanisms for prompt transfer of donated hurricane relief funds

Recommendation has been made for ODPEM, its parent ministry and a financial services institution, to establish formal timelines and monitoring mechanisms to ensure prompt transfer, of donated hurricane relief funds.

This should include documented formal agreement, periodic reconciliations and escalation procedures for delays.

The recommendation was made by the Auditor General in a report tabled in Parliament yesterday.

The report outlined the findings of an Audit of the Office of Disaster Preparedness and Emergency Management (ODPEM) to determine if it effectively ensured the transparency and accountability of resources received and utilised under the Hurricane Melissa relief initiative.

The AG identified inadequate controls over donations processed through a financial services institution, including the absence of a formal agreement for retained funds and incomplete reconciliation.

It found that donated funds were withheld by a Financial Services Institution (FSI) without a formal agreement.

It said ODPEM did not have in place a formal agreement with the FSI governing the retention and subsequent transfer of donated funds.

The AG said while ODPEM presented email correspondence from the FSI proposing to retain 30 per cent of net donations for a period of 45 days to cover potential bank charge back, no evidence was submitted to demonstrate approval of the proposal or the existence of a formal binding agreement between the parties.

The AG found that the FSI did not adhere to its proposed 45 day timeframe for transferring the retained funds to ODPEM.

Amounts totalling J$15.7 million, as well as 298,000, US$429, withheld during the period October 28, 2025, to December 31, 2025, were due for transfer to ODPEM by February 15, 2026.

However, the FSI confirmed on March 9, 2026, that none of the withheld funds had been transferred by that date.

The AG said on March 13, 2026, ODPEM provided a bank transfer receipt dated March 9, 2026, for J$16.1 million, as well as US$305, 292.

However, the AG was unable to confirm that these amounts were credited to ODPEM’s bank accounts, as the transfer receipt did not disclose the recipients’ bank account numbers.

Additionally, the corresponding bank statements were not submitted for audit review.