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T he Private Sector Organisation of Jamaica (PSOJ) in collaboration with the Ministry of Finance and the Public Service (MFPS) has established the annual Public Sector Corporate Governance Awards for public bodies.

These awards will be applicable to those Public Bodies which are governed by the Public Bodies Management and Accountability Act (PBMAA) and the Corporate Governance Framework for Public Bodies (CGF).

Award Objectives  To promote awareness and adherence to the principles of

good corporate governance  To encourage improvements in the standard of corporate

governance disclosure  To recognize Public Bodies that have established high

standards of corporate governance disclosures and practices

A. Eligibility for Entry All Public Bodies governed by the (PBMAA), namely:  Statutory Bodies or Authorities (with body corporate status)  Government Owned Companies

B. Award Evaluation The Event will cover three (3) special awards and four (4) category awards; the latter will determine the overall winner. A questionnaire has been developed in order to elicit responses in relation to the categories. The completed questionnaire will be evaluated by the judging panel using the evaluation scheme which is based on the assignment of 100 points, as allocated among the 4 categories as noted below:

NOTES

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June 12, 2021


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Part Three

Corporate Governance

3.1 Corporate Governance are principles, systems and processes which ensures that organization are direct, control, manage and in an efficient and effective manners. The GOJ+Corporate+Governance+%0AFramework+for+Public+Bodies">GOJ Corporate Governance Framework for Public Bodies revised dated October 2012 outlined the principles that govern the operations of Public entities. 3.2 Our audit revealed the absence of board approved policies and procedures to guide and direct the processes and operations as well as non-compliance with government regulations. CMI did not adhere to the corporate governance initiatives outlined in the PBMA Act, CMI Act and the Cabinet approved Corporate Governance and Accountability frameworks.

CMI Board did not develop a Charter or evaluate Board members

3.3 GOJ’s Corporate Governance Framework for Public Bodies states that each Board must have a Board Charter which defines the roles and responsibilities of the Board including its responsibilities for corporate governance and its code of ethics. At the time of the audit, CMI had not adopted a charter. Failure by the Board to adopt a charter may impair its own understanding of the Boards role and responsibilities. CMI responded in November 2015 that a draft has been submitted to the Permanent Secretary in the Ministry of Transport, works and Housing for approval. 3.4 The said framework in Recommendation 7 (Role of the Chairperson) states that the role of the chairperson of a public entity should include authorizing and overseeing the execution of the annual, performance evaluation of the entire Board, and individual members. However, for the period March 2012 to July 2015, no performance evaluation of the Board and its members were conducted.

CMI Board approved acquisition of laptops for its members

3.5 Contrary to Ministry of Finance policy, CMI Board approved the purchase of 13 computer tablets for Board members at a cost of $317,500. This is in breach Ministry of Finance and the Public Service Circular No. 1 dated January 15, 2007. Section 3 (b) of the said Circular states that board members are only entitled to board fees and reimbursed of travelling expense directly related to their attendance at board meeting . No Bonding for Employees in receipt of Scholarship 3.6 We noted that seven employees received scholarship totalling $3.7 million for which no bonding agreements were executed. This practice breached the Government of Jamaica Bonding Policy, which stipulates that once an employee receives award training; the cost of training is regarded as a loan and the individual as a borrower. The policy further states that the minimum award that required bonding

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June 10, 2021


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