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JUTC fesses up - Bus company admits it breached procurement guidelines
THE BOARD of the beleaguered Jamaica Urban Transit Company Limited (JUTC) has admitted committing procurement breaches at the company, in recent months, and outlined a host of measures aimed at preventing any future recurrence.
In a release issued yesterday, the board made the concession which comes almost a week after a damning report from the Office of the Contractor General (OCG). The OCG's report had outlined apparent corruption and flagrant breaches of procurement guidelines at the state-owned bus company.
Prime Minister Bruce Golding late last week ordered a report from Transport Minister Mike Henry, and the board of the JUTC, on the infringements cited in the contractor general's report.
Final report in
Formal admission of the contravention of procurement rules was made to the prime minister when the report he had requested was tendered on Wednesday.
In its release yesterday, the transport ministry said a copy of the report from the JUTC board, including breaches outside of the period that was covered by the OCG's probe, would be sent to the OCG by the minister.
The release stated that Henry was moving to have full disclosure on the matter.
In July, Henry had criticised a decision by the OCG to conduct an investigation into the procurement practices of the JUTC following allegations of breaches reported in the media.
When the allegations surfaced, Henry had charged that the proposed probe was "against the background that internal investigations at the company have so far found nothing untoward in respect of the procurement practices there".
"Additionally, in respect of the main contracts which the OCG said it would be probing, it has been clear that some amount of misinformation and possibly misguided and fringe political motives led to the charges in the media which prompted the pending OCG enquiry," Henry had said.
"Hence, it is expected that the facts, once fully established, will clear the air, especially in respect of the stewardship of the JUTC board under the leadership of the late Douglas Chambers."
However, the OCG's report has since pointedto evidence of cronyism and blatant breaches in the government procurement guidelines.
'Wilfully misleading'
Chambers, the late chairman, and the then chairman of the JUTC finance committee, Bindley Sangster, were fingered for "wilfully misleading" a contractor general in the JUTC quarterly contract award (QCA) report dated July 28.
Contractor General Greg Christie stated in his report that the "false statement" on the QCA was intended to mislead a contractor general.
In this regard, Christie said a criminal offence was committed by Sangster.
He has since submitted a report to the director of public prosecutions and the commissioner of police.
Last night Robert Pickersgill, Opposition spokesman on transport, said he was outraged at what he described as the woefully inadequate, "do nothing" response from Henry to blatant acts of corruption at the bus company.
He said that, despite acknowledging that the JUTC board uncovered more breaches, the country was yet to receive an apology from the minister, regret or sanction against those who committed breaches.
"The Minister's failure to act has now placed this issue squarely in the hands of the Prime Minister to take the actions that are required under the circumstances," said Pickersgill.
The ministry has made the following decisions:
Instructing its internal auditors to undertake a complete and detailed review of the procurements at the JUTC this year.
To carry out an audit review to clarify the involvement of any technical officers in the company in any breaches of the procurement process that are detected.
Auditors will also be required to identify whatever systems or procedures, or the absence of them, gave effect to the breaches which have taken place at the bus company.
Obtain precise details of the nature of the business agreements between Simber Production Limited and the JUTC.
Determine how the transactions between both companies were handled, plus any other possible association between the JUTC and any other company with which the bus company's late chairman, Douglas Chambers, or any other board member, was associated.
THE BOARD of the beleaguered Jamaica Urban Transit Company Limited (JUTC) has admitted committing procurement breaches at the company, in recent months, and outlined a host of measures aimed at preventing any future recurrence.
In a release issued yesterday, the board made the concession which comes almost a week after a damning report from the Office of the Contractor General (OCG). The OCG's report had outlined apparent corruption and flagrant breaches of procurement guidelines at the state-owned bus company.
Prime Minister Bruce Golding late last week ordered a report from Transport Minister Mike Henry, and the board of the JUTC, on the infringements cited in the contractor general's report.
Final report in
Formal admission of the contravention of procurement rules was made to the prime minister when the report he had requested was tendered on Wednesday.
In its release yesterday, the transport ministry said a copy of the report from the JUTC board, including breaches outside of the period that was covered by the OCG's probe, would be sent to the OCG by the minister.
The release stated that Henry was moving to have full disclosure on the matter.
In July, Henry had criticised a decision by the OCG to conduct an investigation into the procurement practices of the JUTC following allegations of breaches reported in the media.
When the allegations surfaced, Henry had charged that the proposed probe was "against the background that internal investigations at the company have so far found nothing untoward in respect of the procurement practices there".
"Additionally, in respect of the main contracts which the OCG said it would be probing, it has been clear that some amount of misinformation and possibly misguided and fringe political motives led to the charges in the media which prompted the pending OCG enquiry," Henry had said.
"Hence, it is expected that the facts, once fully established, will clear the air, especially in respect of the stewardship of the JUTC board under the leadership of the late Douglas Chambers."
However, the OCG's report has since pointedto evidence of cronyism and blatant breaches in the government procurement guidelines.
'Wilfully misleading'
Chambers, the late chairman, and the then chairman of the JUTC finance committee, Bindley Sangster, were fingered for "wilfully misleading" a contractor general in the JUTC quarterly contract award (QCA) report dated July 28.
Contractor General Greg Christie stated in his report that the "false statement" on the QCA was intended to mislead a contractor general.
In this regard, Christie said a criminal offence was committed by Sangster.
He has since submitted a report to the director of public prosecutions and the commissioner of police.
Last night Robert Pickersgill, Opposition spokesman on transport, said he was outraged at what he described as the woefully inadequate, "do nothing" response from Henry to blatant acts of corruption at the bus company.
He said that, despite acknowledging that the JUTC board uncovered more breaches, the country was yet to receive an apology from the minister, regret or sanction against those who committed breaches.
"The Minister's failure to act has now placed this issue squarely in the hands of the Prime Minister to take the actions that are required under the circumstances," said Pickersgill.
The ministry has made the following decisions:
Instructing its internal auditors to undertake a complete and detailed review of the procurements at the JUTC this year.
To carry out an audit review to clarify the involvement of any technical officers in the company in any breaches of the procurement process that are detected.
Auditors will also be required to identify whatever systems or procedures, or the absence of them, gave effect to the breaches which have taken place at the bus company.
Obtain precise details of the nature of the business agreements between Simber Production Limited and the JUTC.
Determine how the transactions between both companies were handled, plus any other possible association between the JUTC and any other company with which the bus company's late chairman, Douglas Chambers, or any other board member, was associated.
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