NASSAU, BAHAMAS — The Disaster Reconstruction Authority (DRA) incurred a net loss of just over $2 million since it commenced operations back in December 2019, an independent auditor’s report has found.
In a long-awaited independent auditor’s report undertaken by Lambert Longley and Associates, it was noted that approximately 3,735 homeowners met the criteria to receive assistance and were assessed and funded through the Small Home Repairs Program (SHRP) to date.
“As at June 30, 2021, the SHRP had approved 3,735 homeowners for assistance in the Disaster Zone,” the report read.
“The GOB committed to completing 2,692 or 72 percent of those approved homeowners in what was categorized as Stage 1. In the budget estimates and allocations for the year July 2021 through June 2022, a commitment of $2 million was designated to complete Stage 1 and assist homeowners in what has been labeled Stage 2.
The report noted that the total amount allocated to the SHRP was $17,147,500. The amount spent to June 30, 2021 on 2,692 homeowners (Stage 1) was $13,080,616. The amount required to complete the work is $4,066,884.
According to the report, the funds now available to complete the 2,692 homes is $3,092,056, leaving a shortfall of $974,828. The amount required to complete the additional 1,043 homeowners in Stage 3 is $5,470,000. The net amount of funds required to complete the 3,735 approved homeowners is $6,444,828 although no specific timeline for funding has been established.
Apart from the net loss of $2,185,550 incurred for the 19-month period from the date of the commencement of its operations, December 1, 2019 to June 30, 2021, the report found that the DRA had a net deficit of $1,363,150 as of June 30, 2021.
According to the report, the DRA is exploring all avenues to recover funds paid to the foreign joint venture partner of a contractor engaged to construct the Abaco Centre.
“The balance due from contractors consists primarily of $215,000 paid to the joint venture partner of the contractor engaged to construct the Abaco Centre,” the report read.
“The JV partner, a foreign company misapplied the use of funds and the DRA is exploring all legal avenues to receive the sum for the benefit of the project.”
It continued: “Additionally, there were two instances where payments wintered for one contractor under the SHRP were errantly paid to another. The DRA has since recovered one of the payments and is in the process of recovering the other.”
The report also noted that DRA received $3,001,476 in corporate contributions.
