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should be called in. I have no confidence in the Fraud Squad.
Criminal probe urged
Light bulb saga explodes with contractor general's report
Balford Henry, Observer writer balfordh@jamaicaobserver.com
Tuesday, February 05, 2008
SPENCER... had responsibilty for the project
Contractor-General Greg Christie says that there is evidence suggesting "a very strong inference of an unlawful criminal conspiracy and corruption" in the award of contracts for the installation of free Cuban light bulbs under the controversial 4m Project initiated by the previous Government.
The contractor-general based his assertion on what he described as "very serious and far-reaching allegations" made against former minister of state for industry, technology, energy and commerce, Kern Spencer, by two drivers employed to the project.
He said, however, that after declaring the statements to be "truthful, accurate and complete", both men "sought to withdraw the statements after they were allegedly contacted by Senator Spencer and the money which they had initially claimed was owed to them for services which they had performed in the execution of the 4M Project was paid".
CHRISTIE. in such circumstances, a criminal investigation into the matter is warranted
In a very explosive report on the controversial project, Christie accused Spencer of "improper, unauthorised and unlawful intervention in the project's procurement, contract award and contract payment processes".
Christie said he saw no evidence to suggest culpability on the part of then Energy Minister Phillip Paulwell for any of the procurement and contract award breaches associated with the project.
However, Christie implicated Sherine Shakes, mother of Spencer's child, who was listed as business development manager/project manager for Universal Management and Development Company (UMD), which received the bulk of the payments from the Petroleum Corporation of Jamaica (PCJ) in relation to the project; and her mother, Verdie Mair, who was listed as one of the contractors engaged on the 4M Project by Spencer.
Mair reportedly received direct payments of $700,000 from the PCJ for catering services under the project. She was also, separately, listed as the first company secretary for UMD and Caribbean Communications and Media Network (CCMN), which also received a number of contracts under the project.
Christie said Shakes, who was ostensibly held out by the UMD to be its principal project management, operations and administrative representative, conceded to his office that she had no prior project management experience.
He said that property, allegedly owned by Spencer, and/or his company, Butterfly Traders Limited, was utilised in the execution of contracts.
He said that his investigations unearthed allegations which could, at a minimum, suggest that Spencer, by himself and/or through his company, "was an active participant in the execution of contracts under the 4M Project, at a time when he was the public officer for the implementation of the project".
Christie said that the circumstances would suggest that "an illicit benefit or benefits may have been derived therefrom" by Spencer, contrary to the provision of the Corruption Prevention Act.
"The circumstances of the matter are even more compounded by the fact that Senator Spencer has admitted to the use of his public office to facilitate the award of the said contracts," said Christie. "In such circumstances, it is the OCG's considered view that, at a minimum, a criminal investigation into the matter is warranted to determine, inter alia, if corruption charges should be brought against Senator Spencer."
The contractor-general said that Rodney Chin, who was named as the sole director of both UMD and CCMN, refused to comply with his request to be interviewed, acting on the advice of his attorney, Valerie Neita-Robertson. He said that Neita-Robertson, in a response to him, stated that "the state may not, (even through a Supreme Court justice), compel a citizen to incriminate himself unless immunity against criminal prosecution is granted."
However, Christie said that he did not share this view and has referred the matter to the Director of Public Prosecutions (DPP), as he said that "critical questions" pertaining to the project needed to be answered by Chin.
He noted that while the 4M Project was commenced in July 2006, both UMD and CCMN were "organised in the same month" on July 31 and July 20 respectively.
The contractor-general said that the findings of his office revealed evidence of breaches of the Government Procurement Procedures Handbook (GPPH), the Contractor-General Act, the Financial Administration and Audit Act and the Public Bodies Management and Accountability Act in the procurement of the contracts for the project and in the execution of the contract itself.
He said that the rate proposed by UMD for the project was three times that which was tendered by the other bidder, Power Services Company Limited. UMD was selected and engaged by Spencer, he said.
He criticised the ministry and the PCJ for failing to apply adequate planning, procurement and accounting controls.
Christie also said that there was a breach of duty on the part of the permanent secretary in the ministry and accountable officers at the PCJ and that, quite surprisingly, none of them claimed responsibility for the project.
He said that the OCG had seen no evidence of any written contract between the Government and project suppliers/contractors, and added that there was no "transparency, fairness, impartiality or merit" in the procurement of the contractors for the project.
"This should not be surprising since several of the project's contractors, inclusive of the main contract - UMD - were handpicked and engaged by state minister, Senator Kern Spencer," he said.
Last month, the then auditor-general, Adrian Strachan, in his report on the controversy tabled in Parliament, said the results of his observations "clearly indicate that the project under which four million free light bulbs courtesy of Cuba were to be distributed to Jamaicans was not planned and implemented in a satisfactory manner".
Strachan said that there was a shortage of some 176,380 bulbs costing approximately $92 million; absence of an effective system of budgetary control resulting in the making of payments and the incurring of unpaid obligations of $185.3 million over the approved financial support of the PCJ.
Spencer shouldered much of the blame for the discrepancies and alleged over expenditure amounting to some $114 million for the bulbs, which cost nothing to the then government, when the matter was first made public by new energy Minister Clive Mullings in October last year.
Criminal probe urged
Light bulb saga explodes with contractor general's report
Balford Henry, Observer writer balfordh@jamaicaobserver.com
Tuesday, February 05, 2008
SPENCER... had responsibilty for the project
Contractor-General Greg Christie says that there is evidence suggesting "a very strong inference of an unlawful criminal conspiracy and corruption" in the award of contracts for the installation of free Cuban light bulbs under the controversial 4m Project initiated by the previous Government.
The contractor-general based his assertion on what he described as "very serious and far-reaching allegations" made against former minister of state for industry, technology, energy and commerce, Kern Spencer, by two drivers employed to the project.
He said, however, that after declaring the statements to be "truthful, accurate and complete", both men "sought to withdraw the statements after they were allegedly contacted by Senator Spencer and the money which they had initially claimed was owed to them for services which they had performed in the execution of the 4M Project was paid".
CHRISTIE. in such circumstances, a criminal investigation into the matter is warranted
In a very explosive report on the controversial project, Christie accused Spencer of "improper, unauthorised and unlawful intervention in the project's procurement, contract award and contract payment processes".
Christie said he saw no evidence to suggest culpability on the part of then Energy Minister Phillip Paulwell for any of the procurement and contract award breaches associated with the project.
However, Christie implicated Sherine Shakes, mother of Spencer's child, who was listed as business development manager/project manager for Universal Management and Development Company (UMD), which received the bulk of the payments from the Petroleum Corporation of Jamaica (PCJ) in relation to the project; and her mother, Verdie Mair, who was listed as one of the contractors engaged on the 4M Project by Spencer.
Mair reportedly received direct payments of $700,000 from the PCJ for catering services under the project. She was also, separately, listed as the first company secretary for UMD and Caribbean Communications and Media Network (CCMN), which also received a number of contracts under the project.
Christie said Shakes, who was ostensibly held out by the UMD to be its principal project management, operations and administrative representative, conceded to his office that she had no prior project management experience.
He said that property, allegedly owned by Spencer, and/or his company, Butterfly Traders Limited, was utilised in the execution of contracts.
He said that his investigations unearthed allegations which could, at a minimum, suggest that Spencer, by himself and/or through his company, "was an active participant in the execution of contracts under the 4M Project, at a time when he was the public officer for the implementation of the project".
Christie said that the circumstances would suggest that "an illicit benefit or benefits may have been derived therefrom" by Spencer, contrary to the provision of the Corruption Prevention Act.
"The circumstances of the matter are even more compounded by the fact that Senator Spencer has admitted to the use of his public office to facilitate the award of the said contracts," said Christie. "In such circumstances, it is the OCG's considered view that, at a minimum, a criminal investigation into the matter is warranted to determine, inter alia, if corruption charges should be brought against Senator Spencer."
The contractor-general said that Rodney Chin, who was named as the sole director of both UMD and CCMN, refused to comply with his request to be interviewed, acting on the advice of his attorney, Valerie Neita-Robertson. He said that Neita-Robertson, in a response to him, stated that "the state may not, (even through a Supreme Court justice), compel a citizen to incriminate himself unless immunity against criminal prosecution is granted."
However, Christie said that he did not share this view and has referred the matter to the Director of Public Prosecutions (DPP), as he said that "critical questions" pertaining to the project needed to be answered by Chin.
He noted that while the 4M Project was commenced in July 2006, both UMD and CCMN were "organised in the same month" on July 31 and July 20 respectively.
The contractor-general said that the findings of his office revealed evidence of breaches of the Government Procurement Procedures Handbook (GPPH), the Contractor-General Act, the Financial Administration and Audit Act and the Public Bodies Management and Accountability Act in the procurement of the contracts for the project and in the execution of the contract itself.
He said that the rate proposed by UMD for the project was three times that which was tendered by the other bidder, Power Services Company Limited. UMD was selected and engaged by Spencer, he said.
He criticised the ministry and the PCJ for failing to apply adequate planning, procurement and accounting controls.
Christie also said that there was a breach of duty on the part of the permanent secretary in the ministry and accountable officers at the PCJ and that, quite surprisingly, none of them claimed responsibility for the project.
He said that the OCG had seen no evidence of any written contract between the Government and project suppliers/contractors, and added that there was no "transparency, fairness, impartiality or merit" in the procurement of the contractors for the project.
"This should not be surprising since several of the project's contractors, inclusive of the main contract - UMD - were handpicked and engaged by state minister, Senator Kern Spencer," he said.
Last month, the then auditor-general, Adrian Strachan, in his report on the controversy tabled in Parliament, said the results of his observations "clearly indicate that the project under which four million free light bulbs courtesy of Cuba were to be distributed to Jamaicans was not planned and implemented in a satisfactory manner".
Strachan said that there was a shortage of some 176,380 bulbs costing approximately $92 million; absence of an effective system of budgetary control resulting in the making of payments and the incurring of unpaid obligations of $185.3 million over the approved financial support of the PCJ.
Spencer shouldered much of the blame for the discrepancies and alleged over expenditure amounting to some $114 million for the bulbs, which cost nothing to the then government, when the matter was first made public by new energy Minister Clive Mullings in October last year.
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