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Vanuatu Ombudsman's Reports |
REPUBLIC OF VANUATU
OFFICE OF THE OMBUDSMAN
PUBLIC REPORT
ON THE
MISUSE OF MP ALLOCATION FUND BY FORMER MEMBER OF PARLIAMENT FOR BANKS & TORRES, MR. STANLEY REGINALD
8 April 2003
1183/2003/05
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TABLE OF CONTENTS
SUMMARY
1. JURISDICTION
2. PURPOSE, SCOPE OF INVESTIGATION AND METHODS USED
3. RELEVANT LAWS, REGULATIONS AND RULES
4. OUTLINE OF EVENTS
5. RESPONSES BY THOSE WITH FINDINGS AGAINST THEM
6. FINDINGS
7. RECOMMENDATIONS
8. INDEX OF APPENDICES
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PUBLIC REPORT
ON THE
MISUSE OF MP ALLOCATION FUND
BY FORMER MEMBER OF PARLIAMENT FOR BANKS & TORRES,
MR. STANLEY REGINALD
This report covers findings made by the Ombudsman in his investigation into the former Member of Parliament, Mr. Stanley Reginald (Mr. Reginald). Mr. Reginald, in his term as Member of Parliament for Banks and Torres constituency, is alleged to have misused his MP allocation fund for the years 1999 and 2000. Goods and money were requested by unknown people and were thus never received by various communities who later discovered their names in the government invoices, LPOs and GPVs.
The Ombudsman finds that Mr. Reginald violated his obligations as a leader under the Leadership Code Act by having conflicts of interest and apparently committing theft. The Ombudsman is recommending that legal proceedings be taken against Mr. Reginald for using public money for his own interest instead of the public good and that the release of allocation funds should be strictly monitored and accounted for.
1.1 The Constitution, the Ombudsman Act and the Leadership Code Act allow the Ombudsman to enquire into the conduct of government, related bodies and the Leaders. This includes the former Member of Parliament for Banks & Torres, Mr. Stanley Reginald (Mr. Reginald) who was a leader at that time of the actions discussed in this report.
2. PURPOSE, SCOPE OF INVESTIGATION AND METHODS USED
2.1 The purpose of this report is to present the findings of the Ombudsman as required by the Constitution, the Ombudsman Act and the Leadership Code Act.
2.2 The scope of this investigation is to establish the facts about the alleged misappropriation of his MP (Member of Parliament) allocation fund by former MP for Banks & Torres, Mr. Reginald. The allegations involve goods and money from the allocation fund not being received by various communities in his constituency, missing goods obtained from his allocation fund and the involvement of personal interest.
2.3 This investigation has been hampered by the difficulty in getting Mr. Reginald to provide the information in relation to the allegations in this report.
2.4 This Office collects information and documents by informal request, summons, letters, interviews and research.
3. RELEVANT LAWS, REGULATIONS AND RULES
3.1 Relevant parts of the following laws are reproduced in Appendix A.
3.2. Articles 66 and 67 of the Constitution provides the definition of a leader and conduct expected from a leader.
3.3 Section 11 of the Ombudsman Act gives power to the Ombudsman to investigate leaders under the Leadership Code Act.
3.4 Sections 7, 18, 20 & 24 of the Leadership Code Act define conflict of interest, private interest and outline breaches of the Code.
4.1. On 18 September 1998, it is alleged that Mr. Reginald used money from his allocation in LPO 318956 (Local Purchase Order) worth vt113,000 to purchase some items for donation to Sereti village. See Appendix B: LPO 318956. From the copy of the Micro Project Application Form, the following goods were applied for; 2 cooking pots, 2 Coleman lights, 2 spades, 2 shovels, 6 rakes and 2 pinch bars: See Appendix C: Micro Project Application Form. It was claimed that the following items were received: the 2 cooking pots, 6 shovels, 6 spades and 6 rakes. The items were contrary to what was paid for. There was supposed to be only 2 shovels and 2 spades and not 6 as presented to the community of Sereti. Also the 2 pinch bars and the 2 Coleman lights were not received.
4.2. On 18 September 1998, it is alleged that Mr. Reginald used funds from his MP allocation in LPO 318956 in the name of Barvet village, Gaua Island to purchase 20 bags of cement worth vt26,250 for his nephew Masten Harris. See Appendix D: LPO 318956.
4.3. On 31 March 1999, it is alleged that Mr. Reginald used his MP allocation in the name of Letoltol community (which is the same as Sereti where he comes from) in order to obtain goods amounting to vt290,000 in LPO 328139. The money was used to purchase a 25 HP outboard motor engine. It is alleged that Mr. Reginald’s brother and father are in possession of the engine. See Appendix E: LPO 328139.
4.4. On 9 April 1999, it is alleged that Mr. Reginald used his MP allocation from LPO 297089 to donate vt100,000 to Bigstone community, however, it is claimed that the money was not received. See Appendix F: LPO 297089.
4.5. On 11 June 1999, it is alleged that Mr. Reginald used his allocation as a donation to the people of Merig Island via GPV 298468 (Government Payment Voucher). It is claimed that the money was not seen. See Appendix F: GPV 298468.
4.6. On 31 March 1999, it is alleged that Mr. Reginald used his allocation fund to purchase some agricultural supplies for the community of Lembal, East Gaua. It is claimed that the goods were not received.
4.7. It is also alleged that for the year 2000, Mr. Reginald did not make any contribution to his constituency. For the year 2001 as well, nothing happened, except for the construction of Mr. Reginald’s bungalow, his private property.
5. RESPONSES BY THOSE WITH FINDINGS AGAINST THEM
5.1 Before starting this enquiry, the Ombudsman notified all people or bodies complained of and gave them the right to reply. Also a working paper was provided prior to this public report to give another opportunity to respond. No response is received from people concerned.
6.1. Finding 1: The Ombudsman finds that Mr. Reginald may have breached section 20 of the Leadership Code Act.
Section 20 of the Leadership Code Act states that a leader must not use or agree to use public money other than for the purpose which it may be lawfully used. An MP allocation fund is public money and is to be used for the needs of the people of Vanuatu. Failing to meet the request of people or withholding goods purchased from the allocation fund (or cash from the fund itself) is a misuse of public money. MP Reginald was found to have withheld some goods and money that was supposed to be donated to communities in his constituency.
6.2. Finding 2: The Ombudsman finds that Mr. Reginald may have breached section 24 of the Leadership Code Act.
Mr. Reginald allegedly purchased 20 bags of cement for his nephew, Mr. Masten Harris on 18 September 1998. This is regarded as a conflict of interest, in breach of section 24 of the Leadership Code Act.
In section 7(2) of the Leadership Code Act, conflict of interest is defined as a personal benefit a leader directly or indirectly obtains from a decision on an official matter. Section 24 states that if a leader has a conflict of interest on a matter, he must not act in relation to the matter in such a way that the leader or a close member of his or her close family benefits from the action.
6.3. Finding 3: The Ombudsman finds that Mr. Reginald may have breached section 20 of the Leadership Code when he applied his contribution mostly to the construction of his bungalows and not to providing any service to his constituency during year 2001.
It is alleged that Mr. Reginald was constructing his private bungalows in the year 2001 and did not make any contribution to his community.
6.4. Finding 4: The Ombudsman finds that Mr. Reginald may have committed theft.
In this allegation, the Ombudsman found that MP Reginald may have stolen the Coleman lights and the pinch bars purchased from LPO 318956, vt100,000 from GPV 297089 meant for a donation to Bigstone community, vt104,500 obtained from GPV 298468 meant for a donation to the people of Merig Island and the agricultural supplies intended to be a donation to the people of Lembal community.
7.1 Recommendation 1: Legal proceedings be taken by the Public Prosecutor against Mr. Stanley Reginald for the breaches of the Leadership Code Act and any other law mentioned in this report.
7.2 Recommendation 2: The Office of the Speaker and the Finance Department should develop a more effective system for monitoring how MP allocation funds are used.
Dated the 8th day of April 2003.
Hannington G ALATOA
OMBUDSMAN OF THE REPUBLIC OF VANUATU
A Relevant laws.
B Copy of LPO 318956.
C Copy of Micro Project Application Form.
D Second copy of LPO 318956 relating to the purchase of 20 bags of cement.
E Copy of LPO 328139.
F Copy of GPV 297089.
G Copy of GPV 298468.
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