THE Government says it wants to recover approximately $1.9 million in loans allegedly owed to the Students’ Loan Bureau (SLB) by the former executive director Dr Lenice Barnett, according to Finance Minister Audley Shaw.

“There are amounts owed to the SLB in the form of loans somewhere in the region of $1.9 million that will have to be recovered,” Shaw told journalists at yesterday’s post-Cabinet press briefing at Jamaica House in Kingston. “Those are matters to be determined in the settlement arrangements.”

Barnett was sacked on Tuesday by the finance minister following a damning audit conducted by the Public Accountability Inspectorate (PAI) division of the Ministry of Finance.

According to Shaw, the PAI was dispatched to the SLB a few weeks ago to commence the audit once questionable information began to emerge.

The report, a copy of which was obtained by the Observer, noted that the PAI was “engaged to investigate questionable allegations” against the SLB’s head regarding remuneration and benefits.

This, the report further stated, included unapproved staff loans and salary advances, gratuity payments outside of the terms of contract and abuse of motor vehicle policy.

The report said further that the general atmosphere of the organisation was one of timidity and fear as offices of key personnel are monitored by an active surveillance system (CCTV) by Barnett from her office.

“The appalling attrition rate of 46 employees’ separation since 2007 out of a staff complement of 76 is indicative of an unsatisfactory work environment,” the report stated.

Among the other allegations cited by the report was that Barnett received motor vehicle upkeep of over $1.8 million for 2007 to 2010 despite being provided with a fully maintained motor vehicle by the SLB.

The audit also made allegations of inappropriate financial arrangements involving Barnett, the SLB board and the Ministry of Finance.

Yesterday, an effort by the Observer to again contact Barnett for comment was not successful as the SLB’s public relations officer Analisa Downes said in an e-mail, “The numbers I have for Mrs Barnett are all SLB numbers and under the circumstances she is no longer accessible by these.”

When asked if she had an e-mail address for Barnett, Downes responded: “The only e-mail address I had for Mrs Barnett was her SLB address, this is no longer valid. I therefore cannot assist in this regard. I do apologise.”

Yesterday, the entire seven-member SLB board resigned.

Shaw disclosed that he accepted the resignation of the board following a meeting held to discuss the findings of the report.

Quizzed as to whether he had lost confidence in the board given the findings of the report, Shaw said “the general trend of the report would indicate that there should have been greater diligence on the part of the board”.

However, Shaw said his ministry cannot take accountability for allowing the issues highlighted by the report to have continued for so long, given that a board was appointed to oversee the operations.

“That is why we have boards to assist us in monitoring,” Shaw said.

Shaw could not say specifically if any criminal investigation would be conducted in the operations of the SLB, as he said the general findings point to misconduct and abuse of authority.

“It has not been a specific recommendation of the PAI (Public Accountability Inspectorate),” Shaw said.

He, however, explained that he will be seeking advice from the solicitor general on how to proceed in relation to the money allegedly paid to Dr Barnett in motor vehicle upkeep allowance.

Dr Barnett’s position is being temporarily filled by Monica Brown, director of the Credit Unions Department of the Bank of Jamaica, who has been seconded to the SLB until a suitable replacement can be found.

The names of a new board will be submitted to Cabinet next Monday for its approval.