Hardware and Lumber (H&L) and its deputy CEO, Olive Downer Walsh, have come out in stout defence of her integrity, amid an Integrity Commission investigation that determined her appointment to the board of the Rural Agricultural Development Authority (RADA) presented a conflict of interest due to the benefits her company received from the state entity.

In the Integrity Commission’s report, tabled in Parliament on Tuesday (October 25), Director of Investigations Kevon Stephenson recommended that both Downer Walsh and the Ministry of Agriculture and Fisheries consider removing her from the RADA Board if she had not already stepped aside.

“Having regard to the findings of this investigation in relation to conflict of interest, it is recommended (if not yet done) that the Hon Minister of Agriculture and Fisheries gives serious consideration to removing Mrs Downer Walsh from the Board of the Rural Agricultural Development Authority,” the report states.

“Mrs Downer Walsh should likewise consider her own position as a member of that Board. The DI’s recommendation is made having regard to the risk posed generally by Mrs Downer Walsh’s concurrent
positions on the Board and at H&L Limited and the commercial relationship between the two entities.

“More particularly, the existence of the incentive clause in Mrs Downer Walsh’s Employment Contract is an aggravating factor militating against her continued presence on the Board.”

But in a statement last night, Downer Walsh argued that her position as deputy CEO at H&L had 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,” she said.

“Based on that, I painstakingly and repeatedly declared my association with H&L in writing.”

Downer Walsh added: “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.

“The records will show that H&L did not inappropriately benefit from my membership on the Board.

“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.

“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.”

In its report, the Integrity Commission outlined its painstaking investigation into Downer Walsh’s appointment, and the fact that, after she joined the RADA Board – during the period between January 2017 to January 2021, RADA awarded 14 contracts to H&L Limited, with an aggregate value of almost $136 million.

“Three of the referenced contracts, were endorsed by Mrs Olive Downer Walsh, deputy chief executive officer on behalf of H&L Limited,” the Integrity Commission’s investigation found.

In its own response, H&L issued a statement in which it said: “For over 94 years, H&L has been a leader in
agriculture, providing quality products and expertise to generations of Jamaican farmers.

“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.”

H&L continued: “As a member of three consecutive boards of the Rural Agriculture Development Authority, appointed by three ministers of agriculture in April 2016, June 2018, and November 2020, Mrs 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. 

“It is unfortunate that suggestions have been made that H&L inappropriately benefited from Mrs Downer Walsh’s presence on the RADA board. The review process for RADA contracts for which H&L offered bids was always open and transparent and the National Integrity Commission (NIC) has concluded that
there is no evidence that Mrs Downer Walsh or H&L obtained any improper benefit from her association with RADA.

“We are proud of her 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.

“H&L remains committed to serving the people of Jamaica, through partnerships with RADA, the Ministry of Agriculture and Fisheries, and our commercial and charity partners. As the qualitative leader, we have always provided the industry with technical support, and we will continue to deliver high-quality products and services and respond to the needs of our people for food security and shelter.”

The Integrity Commission noted in its report that the Director of Investigation’s decision to look into the matter was prompted by an anonymous complaint dated July 10, 2020, which contained, inter alia, the
following allegations:

• That Mrs Olive Downer Walsh is a Director at the Rural Agricultural Development Authority (RADA) and is also a Manager in the Agriculture Division of Hardware and Lumber Limited (H&L Limited);
• That the Agriculture Division of H&L Limited is one of the largest service providers to the Rural Agricultural Development Authority (RADA) and
• That Mrs Downer Walsh is involved in approving programmes and large purchases for RADA; and
• That Mrs Downer Walsh is a recurrent member of the National Board of Directors of RADA and has been on the Board for more than three years.

At the end of the investigation, in his Summary of Findings, Stephenson determined that:

• Mrs Olive Downer Walsh has been a member of the National Board of Directors of the Rural Agricultural Development Authority (RADA) since April 2016 and was reappointed to serve in June 2018 and November 2020
• There is no evidentiary material to support a finding that Mrs Downer Walsh served for a period in excess of the three-year term of office stipulated in section 4(1) of the Schedule of the Rural
  Agricultural Development Authority Act.
• On two occasions, Mrs Olive Downer Walsh made declarations to the Rural Agricultural Development Authority, indicating that she was employed to Hardware and Lumber Limited (H&L Limited) in the capacity of Deputy Chief Executive Officer.
• There is an established commercial relationship between the Rural Agricultural Development Authority (RADA) and Hardware and Lumber Limited.
• During the period between January 2017 and January 2021, the Rural Agricultural Development Authority awarded 14 contracts to H&L Limited, with an aggregate value of $135,975,658.24.
• Three of the referenced contracts, were endorsed by Mrs Olive Downer Walsh, Deputy Chief Executive Officer on behalf of H&L Limited
• The appointment of Mrs Olive Downer Walsh to the National Board of Directors of the Rural Agricultural Development Authority (RADA) constituted a conflict of interest, within the meaning of Section 4.1 of the Government of Jamaica (GoJ) Policy Guidelines for the Nomination, Selection and Appointment of the Boards of Public Bodies, in light of her professional engagement with Hardware and Lumber Limited and the nature of the established commercial relationship between the two entities.