Former chairman of the Universal Access Fund (UAF) Colin Campbell and his then board members have been rapped on the knuckles by Contractor General Greg Christie over their decision to contract a firm headed by fellow director, Minett Palmer.

"This decision was taken in violation of the Government's procurement procedures and as such they did not act with due care in the performance of their duties," Christie said in his report tabled in Parliament on Tuesday.

But despite this criticism the Contractor General seems satisfied that the members of the board were not deliberately trying to breach the rules.

"It is concluded that the services of Ms Palmer/Palmer & Walters were engaged irregularly. However the engagement of these services was based upon a situational need and not an act of impropriety," added Christie.

Probe in 2007

In January 2007, the Contractor General launched a probe into a decision by the UAF to employ a company headed by its board member, Palmer, to provide legal services.

The probe was started following allegations of a conflict of interest by then Opposition Leader Bruce Golding, who claimed the UAF had paid Palmer approximately $25 million.

Golding further charged that Palmer was a specialist legal adviser to then Minister in charge of the UAF, Philip Paulwell.

In his report to Parliament, Christie agreed that there was a conflict of interest and that the decision by the Campbell-chaired board to award a contract to Palmer was done on an uncompetitive basis and in violation of the government guidelines.

But Christie accepted that the board acted based on a need to get the necessary expertise to provide an urgent response to a United States Federal Commission Notice of Enquiry.

If the response was not sent in the limited time available, it could have had serious repercussions for Jamaica.

Christie also noted that the records indicate that Palmer was not present at the board meeting when it was decided to engage her firm.

Applauds the board

But Christie applauded the board of the UAF for terminating the contract and has recommended that the responsible government ministry should ensure that UAF personnel abide by the procurement guidelines.

Christie has also recommended that the Cabinet develop a policy to address state entities awarding contracts to board members or entities where a close family or relative might have a financial interest.