THE actions and carelessness of some Transport Authority agents have left that entity grappling with “an excessive number of claims, primarily for damages relating to unlawful seizure and detention of motor vehicles”.

The issue of “multiple legal claims” courtesy of the “acts or omissions of the authority’s agents” was among several issues frowned upon by Auditor General Pamela Monroe Ellis in her April 2012 report on a review of the Information Systems of the entity tabled in Parliament last week.

Monroe Ellis said up to December 2011, the authority had paid out approximately $18 million covering both legal fees and settlements relating primarily to claims brought against it by motorists over the one-year period.

She said at the time of the audit, the authority’s records revealed that there were a further 58 “active” cases of legal claims brought against it.

“In one instance, a vehicle was seized and subsequently ordered to be released by the police but was eventually sold at auction by the Transport Authority. The Supreme Court ruled in favour of the claimant and to date a total of $9.1 million has been paid to him,” Monroe Ellis outlined. Furthermore, the authority has estimated that if the remaining claims were to be successful, the potential damages and costs could be approximately $13.8 million.

The auditor general went on to note that while the authority has strengthened its legal department to deal with court matters and other legal proceedings, there is no evidence that a comprehensive strategy exists to target the incidences of unlawful seizures and detention of motor vehicles by its inspectors, in order to reduce the risk of further increase in such claims.

However, she said the authority has since advised that a review of the seizure process has been implemented with a view to mitigating the risk of unlawful seizures.

In the meantime, she said the authority should develop a specific set of strategies in collaboration with the Ministry of Transport, Jamaica Constabulary Force (JCF), the Island Special Constabulary Force (ISCF), and the Island Traffic Authority (ITA) aimed at reducing the incidences and the risk of unlawful seizures and detention of motor vehicles in order to reduce future liabilities.

The auditor general noted further that seized vehicles that are held for an inordinately long period increase the risk that disposal by way of sale will be uneconomical due to their decline in value and associated storage and disposal costs.

“The authority should therefore ensure that an efficient system is in place to track all vehicles seized and to activate the disposal process for such vehicles that have been held for six months as outlined in the Transport Authority Act,” she said.

Additionally, the auditor general said all proceeds from the sale of seized vehicles should be paid over to the accountant general in accordance with section 13 (3A) of the Act.

Monroe Ellis said during the review it was discovered that “no funds were paid over to the accountant general because the estimated storage cost of approximately $72.3 million was over two-and-a-half times more than the disposal proceeds, resulting in a net cost to the authority”.