AuGD audit finds low utilization of Hurricane Melissa donations by ODPEM

Donated funds withheld by a financial services institution without formal agreement

Durrant Pate/Contributor

The Auditor General’s Department (AuGD) has found a low utilisation of donated funds for Hurricane Melissa Relief by the Office of Disaster Preparedness and Emergency Management (ODPEM), which is of grave concern.

The AuGD, which carried out a real-time audit examining whether ODPEM effectively ensured the transparency and accountability of resources received and utilised under the Hurricane Melissa Relief Initiative, found many glaring and concerning weaknesses as well as deficiencies in the governance of the Government-Directed Roof Restoration Programme. 

The audit, which evaluated the adequacy of internal control systems designed to prevent and detect potential fraud, waste, and abuse of public resources during disaster response and recovery activities, outlined the key deficiencies observed and presented recommendations for strengthening controls and improving overall compliance.

In a 37-page report, which was tabled in the parliament yesterday, the AuGD report also found that ODPEM received a total of $1.44 billion in cash donations for Hurricane Melissa, comprising $473.4 million and US$6.1 million (J$963 million) from the Support Jamaica initiative and direct donations. However, as at that date, only $26 million, or 1.8 per cent, had been expended. 

In addition, amounts totalling $138.8 million and US$101,974 from Hurricane Beryl cash donations remained unspent while ODPEM did not provide information on the total funds collected and expended for that hurricane.

Donated funds being withheld

In its April 2026 response, ODPEM indicated that the low level of utilisation was due to the absence of authorisation from the Ministry of Finance and the Public Service to expend the funds. Also, the audit identified donated funds being withheld by a financial services institution (FSI) without a formal agreement. 

“ODPEM did not have in place a formal agreement with the FSI governing the retention and subsequent transfer of donated funds. 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 chargeback, no evidence was submitted to demonstrate approval of the proposal or the existence of a formal binding agreement between the parties,” the audit report said.

The AuGD review found that the FSI did not adhere to its proposed 45-day timeframe for transferring the retained funds to ODPEM. Amounts totalling $15.7 million and US$298,429, 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. On March 13, 2026, ODPEM provided a bank transfer receipt dated March 9, 2026, for $16.1 million and US$305,292. 

However, the AuGD 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. In addition, the corresponding bank statements were not submitted for audit review.

Problems with procurement for roofing materials

The report identified problems with the procurement by ODPEM for roofing materials with the national disaster management and relief agency’s utilising the restricted bidding and single source procurement methodologies to award four contracts for roofing materials totalling $167.3 million in response to Hurricane Melissa. 

This approach was consistent with Section 24(1)(d) and Section 25(1)(d) of the Public Procurement Act (2015), which permits the use of these methodologies where there is an urgent need in the public interest arising from a catastrophic event, making it impractical to use standard competitive procurement methods.

Of the four contracts awarded, three were issued to two suppliers who, at the time of contract award, did not hold a valid Public Procurement Commission (PPC) Certificate of Registration and/or a current Tax Compliance Certificate (TCC), as ordinarily required under Section 15 of the Public Procurement Act (2015) and Section 17 of the Public Procurement Regulations (2018).

In each instance, the AuGD says ODPEM relied on the provisions of Guidance Note No. 2/2025, issued by the Ministry of Finance and the Public Service (MoFPS) on November 12, 2025, which permits the engagement of non-registered or tax non-compliant suppliers in circumstances of emergency or extreme urgency.

The audit identified significant deficiencies in both delivery acknowledgement controls and the completeness of payment documentation, as detailed below:

i.               Delivery Verification Deficiencies. Of the $122.5 million in building supplies delivered to JDF locations, only $88.6 million was formally acknowledged as being received by the JDF, representing 72.2 per cent of total deliveries (Appendix 3). The remaining $34 million in roofing materials, representing 27.8 per cent of all materials delivered, was not supported by signed delivery slips or Goods Received Notes countersigned by either ODPEM or a JDF representative, leaving these deliveries unverified and unacknowledged by the receiving party.

ii. Outstanding Payment Documentation. In addition to the delivery verification deficiencies, payment data for two of the four contracts remained outstanding as of the date of this report. Specifically, payment confirmation was not provided for the contracts awarded to Supplier No. 2 under Procurement Round 1 (valued at $52.3 million) and to Supplier No. 3 (valued at $56.2 million). As at March 31, 2026, total contract commitments for roofing materials amounted to $167.3 million, with only $26.2 million in payments verified to date. This leaves $141.1 million in committed expenditure without corresponding confirmed payment documentation.

In April 2026, ODPEM stated that 421 roofs had been repaired under the Roof Restoration Programme and provided a geotagged list of households benefiting from the Programme.  ODPEM submitted a list, prepared by a foreign military support team, containing the names of 200 beneficiaries, their addresses, contact numbers, status of work (per cent completed) and the geographic coordinates of locations. 

Recommendations

·      ODPEM should immediately develop, approve, and document a comprehensive disaster relief expenditure plan that is aligned with donor intent and prioritises the rapid deployment of all donated funds to affected beneficiaries. The plan should set clear utilisation targets, timelines, and programme outputs, and be supported by periodic monitoring and reporting to ensure that all donated funds are substantially utilised to maximise assistance to citizens in need within the shortest possible time following a disaster.

·      ODPEM, in collaboration with its portfolio Ministry and the financial services institution, should establish formal timelines and monitoring mechanisms to ensure prompt transfer of donated funds. This should include documented formal agreement, periodic reconciliations and escalation procedures for delays.

·      ODPEM should take immediate steps to open a designated bank account for the NDF and seek to have the NDF accounts audited as required by the DRM Act.

·      ODPEM should establish a formal Memorandum of Understanding (MOU) with MLSS, clearly outlining roles and responsibilities for beneficiary selection, verification, monitoring and reporting. Robust monitoring mechanisms should be implemented to provide assurance to donors that items procured from cash donations are being appropriately utilised.