PERMANENT Secretary in the Ministry of Agriculture and Fisheries Donovan Stanberry yesterday confirmed a report that he and other senior ministry employees are benefiting from loans through the Cane Expansion Fund, which was set up by the Government in 2008 to assist cane farmers.

The revelation came during a rapid-fire line of questioning from Opposition member, Audley Shaw, at the first sitting of the Public Administration and Appropriations Committee (PAAC) since the summer break.

Shaw pressed the chief accounting officer about the state of the fund, and what appears to be an untidy arrangement that exists, whereby senior officers of his ministry were beneficiaries of loans from the fund.

Stanberry appeared to have no qualms with the committee delving into his affairs, swiftly confirming that he does have a loan with the fund, that his transactions are duly declared with the services commission, declaring that “it’s a transparent arrangement”.

Asked if he was among those benefiting from additional loans despite being in default, Stanberry made it clear that: “I’m not in default. I have never been. The records will show that I’m ahead of my payments.”

When Shaw further pressed the permanent secretary on his knowledge of senior employees of the ministry having got loans as well, and the serious conflict of interest that this situation represents, he stated that “people in the ministry have got loans…I don’t know that that necessarily constitutes a conflict of interest, in the sense that the people who have got loans are not themselves approving those loans, and we have not excluded any legitimate cane farmers from borrowing money from the fund”.

Stanberry chose his words painstakingly as he sought to respond to more questions about the transparency of these transactions: “… There are provisions in the staff orders for those public servants [involved in business] to get the appropriate approval, and officers know the rules,” he said.

But Shaw persisted. “So in getting that appropriate approval for their own private commercial interest, does that realm of approval include getting approval to be able to benefit from Government-funded programmes?” he asked.

“This programme would not be different in that regard,” Stanberry replied.

Stanberry pointed out that the loan is administered by a team drawn from manufacturers, cane farmers and other interest groups. “I’m not aware of any member of the ministry and that committee who awards him or herself,” he added.

Also, the permanent secretary said he was not aware “generally” of farmers being in default and still accessing loans. “That is something that if those cases are there, we will investigate and deal with appropriately, but I don’t know that that is a trend,” he stated.

It was also disclosed that the current demand on the fund is at $600 million, which is twice the amount of the pool of funds which would exist if all farmers repaid their loans in full. Stanberry explained that there was a slowing down in take-up of the facility as farmers were reluctant to plant because of an expected 30 per cent drop in the price of sugar on the European market next year.

The $400-million fund was set up in November 2009 to assist cane farmers with grants and loans to help improve productivity.