Tesheira gets apology from IC; Registrar submitted file to DPP under wrong clause of Integrity Act

Former Finance Minister Karen Nunez Tesheira has got an apology from Martin Farrell, registrar of the Integrity Commission for his “error” of referring an alleged conflict of interest matter involving the CL Financial bailout to the Director of Public Prosecutions. 

In September, Farrell wrote Tesheira informing her that the Integrity Commission had conducted investigations into her alleged breach of the Integrity in Public Life Act and that the commission had submitted a report to the DPP. 

He explained that the referral was in accordance with section 34 (7) of the Act, which allows the commission to make a report to the DPP if it is “satisfied that there are reasonable grounds for suspecting that an offence has been committed.”

The former minister has always contended that she did nothing wrong in the CL matter and her lawyers wrote letters to the Integrity Commission demanding to know what offence she had committed. 

Tesheira’s attorneys also threatened to commence judicial review proceedings against the Integrity Commission if it failed to inform her properly of what offence warranted referral to the DPP. 

The Integrity Commission had been conducting an investigation of Tesheira during the previous administration and wrote her about the probe two months before the 2010 general election.

It's letter stated that it was investigating allegations that she “participated in the process of managing the financial crisis involving CL Financial and its subsidiaries while being a shareholder and depositor with the said CL Financial and its subsidiaries.” 

In June 17 this year the Commission wrote Tesheira stating: “It appears that you may have failed in your duty or obligation under the Act to either disclose a possible or perceived conflict of interest in connection with the provision of financial assistance to CL Financial and/or certain of its subsidiaries and/or disqualify yourself from participating in the decision to provide such financial assistance.” 

Tesheira owned 10,400 shares in CL Financial that was an inheritance from her later husband who worked as Clico’s vice president of Sales and Agencies Administration.

Now Farrell has sent another letter to Tesheira stating that his referral of the matter to the DPP 34 (7) under was an “error”. He expressed regret and offered an apology "for any inconvenience that this error may have caused.” 

He stated that the matter should have been submitted to the DPP under section 31 (3) of the Act, which deals with possible violations of the Code of Conduct. 

Sections 34 (7) assumes that a criminal offence has been committed for which the penalty may be a jail sentence or a fine; section 31 (3) carries no such penalties.