H&L, deputy CEO hit back at conflict of interest claims re RADA Loop Jamaica

Black Immigrant Daily News

Deputy Chief Executive Officer (CEO) at Hardware and Lumber (H&L) Limited, Olive Downer Walsh, and H&L are pushing back at claims about a conflict of interest made by the Integrity Commission.

This, after the commission, in a report tabled in the House of Representatives on Tuesday, rapped the former Minister of Agriculture and Fisheries Floyd Green for reappointing Downer Walsh to the board of the Rural Agricultural Development Authority (RADA) in 2020, despite her position with H&L, which is regarded as a major player in the local agriculture industry.

H&L also has an established commercial link with RADA.

The commission, in its report, accused Green of failing to apply the considerations outlined in the Government’s policy guidelines for the nomination, selection, and appointment of individuals to the boards of public bodies.

It did not accept Green’s explanation, which stated that: “Based on her background in agriculture, Olive Downer Walsh fulfils the requirements of the RADA Act. In light of the new requirements stipulated by Cabinet pertaining to the composition of public boards, namely, the inclusion of 30 per cent females and retention of one-third of previous board members, and her experience in agriculture, she would have been deemed suitably qualified for reappointment.”

The commission’s Director of Investigations Kevon Stephenson said the rationale was unacceptable, in light of the conflict of interest implications raised by Downer Walsh’s concurrent professional relationship with RADA and H&L Limited.

The report noted that between January 2017 and January 2021, RADA awarded 14 contracts to H&L Limited totalling $136 million. Three of those contracts were endorsed by Downer Walsh on behalf of H&L.Stephenson also noted Downer Walsh’s direct involvement in, and proximity to the preparation of tender documents and the execution of contracts between both entities, in her capacity as deputy CEO of the company.

“This proximity and involvement created the perception that the authority’s procurement processes were less than transparent, which may adversely impact public confidence in the operations of the authority,” the commission said.

In her statement Wednesday, Downer Walsh insisted that her position as deputy CEO at H&L has always been a matter of public knowledge.

“So, when invited by successive ministers of agriculture and fisheries to serve on the board of the Rural Agricultural Development Authority, I understood that I operated with the limitation that there could be a potential or perceived conflict of interest. Based on that, I painstakingly and repeatedly declared my association with H&L in writing,” said Downer Walsh.

She said that, in keeping with governance guidelines on managing conflicts of interest, “I recused myself from all discussions at RADA involving H&L”.

“When it was brought to my attention that the National Integrity Commission had launched an investigation into my position on the RADA board, I formally stepped aside from the board on March 15, 2021, to allow the investigation to proceed,” she stated.

Downer Walsh added that the records will show that H&L did not inappropriately benefit from her membership on the board.

She said: “My only interest in serving on the board of RADA was to contribute to the advancement of agriculture in Jamaica based on my professional qualifications and years of experience in the industry.”

She had a parting word for the Integrity Commission, telling the Commission of Parliament: “I reject any attempt to cloak my service to the industry with impropriety, as I have always been vigilant in equally protecting my integrity, the reputation of the company I work for, and RADA’s mission.”

Downer Walsh has been a member of the national board of directors of RADA since April 2016 and was reappointed in June 2018 and November 2020.

The commission, in its recommendations, urged that the minister ensure strict adherence to the Government of Jamaica policy guidelines for the selection and appointment of individuals to the boards of public bodies, taking into consideration conflict of interest that is material to the core business of the entity.

For its part, H&L, in a separate statement, said: “A significant part of our success is the pioneering work of our Deputy CEO Olive Downer Walsh, whose impeccable integrity matches her authoritative knowledge and experience built during a 40-year career in agriculture and management.

It said that as a member of three consecutive RADA boards appointed by three ministers of agriculture in April 2016, June 2018, and November 2020, Downer Walsh’s first mission has always been to serve the nation with probity and distinction.

“Like other industry stakeholders called on to contribute expertise to the national agenda, Mrs Downer Walsh declared her commercial ties upon being appointed and did so as an agenda item at board meetings,” H&L said.

The company said it was unfortunate that suggestions have been made that H&L inappropriately benefited from Downer Walsh’s presence on the RADA board.

H&L said the review process for RADA contracts for which it offered bids was always open and transparent “and the National Integrity Commission has concluded that there is no evidence that Mrs Downer Walsh or H&L obtained any improper benefit from her association with RADA”.

H&L also said it was proud of Downer Walsh’s “integrity, sincerity, and transparency”.

“And we hope that spurious suggestions like the one that initiated the NIC’s investigations will not dissuade professionals like Olive Downer Walsh from standing in service to our nation,” it said.

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