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Cars sold avg. $4,238.60 - Transport Authority offloads vehicles for less than the cost of a tank of gas
Published: Friday | May 10, 2013 6 Comments
Edmond Campbell, Senior Staff ReporterA report on the [COLOR=blue !important][COLOR=blue !important]Transport [COLOR=blue !important]Authority[/COLOR][/COLOR][/COLOR] has revealed that the state body sold 114 of 205 vehicles to an unnamed company for a total of $483,200. Broken down, this means that the company, through the process of sealed bids, purchased each seized car for an average $4,238.60 from the Authority.
The average [COLOR=blue !important][COLOR=blue !important]cost[/COLOR][/COLOR] of each of the 114 vehicles sold under the tag of sealed bids to a single company is less than the amount a motorist would be asked to pay to fill the tank of a 1.6-litre sedan [COLOR=blue !important][COLOR=blue !important]motor [COLOR=blue !important]car[/COLOR][/COLOR][/COLOR].
The deal also means that one company acquired about 55 per cent of the 205 vehicles auctioned through sealed bids.
The eye-opening disclosure was made by the Pamela Monroe Ellis-led Auditor General's Department (AGD) in an information systems review report which was tabled in Parliament in June last year.
In her report, Monroe Ellis drew attention to a disposal exercise of 698 seized vehicles in November and December 2008.
"This involved the public [COLOR=blue !important][COLOR=blue !important]auction[/COLOR][/COLOR] of 304 vehicles, sale by way of sealed bids of 205 vehicles and sale by way of private treaty of 189 vehicles," the report stated.
A member of the management team at the Auditor General's Department told The Gleaner yesterday that in the case of the 205 vehicles sold by sealed bids, the Transport Authority explained that 167 of that number had only one bidder while the balance of 38 had multiple bidders.
The Transport Authority Act states that the vehicles may be sold to cover the cost of storage.
Additionally, the auditor general pointed out that of the 205 vehicles auctioned by way of sealed bids, 17 were sold for less than the highest bids received.In one instance, three persons submitted bids for a Toyota [COLOR=blue !important][COLOR=blue !important]Corolla[/COLOR][/COLOR]. The first put up $85,000, the second $50,000, and the third $61,000. However, the person with the lowest offer was the successful bidder. Bids were also made for a Suzuki, with offers ranging from $50,000 to $40,000 and a low of $20,000. At the end of the process, the lowest bidder walked away with the vehicle.
The executive at the Auditor General's Department pointed out that to date, the Transport Authority had not provided an explanation as to why the lowest bidders, in the case of the 17 vehicles, got the nod to purchase the motor cars. The senior AGD employee said the department was still awaiting a response from the Transport Authority.
Efforts to contact members of the management team of the Transport Authority were unsuccessful yesterday as they were said to be in a management meeting.
The Transport Authority Act, Section 13 (3) (c), provides that, where a vehicle has been seized, "if the vehicle remains in the possession of the police or the Authority for more than six months, it may, subject to such conditions as may be prescribed under the Road Traffic Act, be sold by the police or the Authority to recover the cost of storage".
Published: Friday | May 10, 2013 6 Comments
Edmond Campbell, Senior Staff ReporterA report on the [COLOR=blue !important][COLOR=blue !important]Transport [COLOR=blue !important]Authority[/COLOR][/COLOR][/COLOR] has revealed that the state body sold 114 of 205 vehicles to an unnamed company for a total of $483,200. Broken down, this means that the company, through the process of sealed bids, purchased each seized car for an average $4,238.60 from the Authority.
The average [COLOR=blue !important][COLOR=blue !important]cost[/COLOR][/COLOR] of each of the 114 vehicles sold under the tag of sealed bids to a single company is less than the amount a motorist would be asked to pay to fill the tank of a 1.6-litre sedan [COLOR=blue !important][COLOR=blue !important]motor [COLOR=blue !important]car[/COLOR][/COLOR][/COLOR].
The deal also means that one company acquired about 55 per cent of the 205 vehicles auctioned through sealed bids.
The eye-opening disclosure was made by the Pamela Monroe Ellis-led Auditor General's Department (AGD) in an information systems review report which was tabled in Parliament in June last year.
In her report, Monroe Ellis drew attention to a disposal exercise of 698 seized vehicles in November and December 2008.
"This involved the public [COLOR=blue !important][COLOR=blue !important]auction[/COLOR][/COLOR] of 304 vehicles, sale by way of sealed bids of 205 vehicles and sale by way of private treaty of 189 vehicles," the report stated.
A member of the management team at the Auditor General's Department told The Gleaner yesterday that in the case of the 205 vehicles sold by sealed bids, the Transport Authority explained that 167 of that number had only one bidder while the balance of 38 had multiple bidders.
The Transport Authority Act states that the vehicles may be sold to cover the cost of storage.
Additionally, the auditor general pointed out that of the 205 vehicles auctioned by way of sealed bids, 17 were sold for less than the highest bids received.In one instance, three persons submitted bids for a Toyota [COLOR=blue !important][COLOR=blue !important]Corolla[/COLOR][/COLOR]. The first put up $85,000, the second $50,000, and the third $61,000. However, the person with the lowest offer was the successful bidder. Bids were also made for a Suzuki, with offers ranging from $50,000 to $40,000 and a low of $20,000. At the end of the process, the lowest bidder walked away with the vehicle.
The executive at the Auditor General's Department pointed out that to date, the Transport Authority had not provided an explanation as to why the lowest bidders, in the case of the 17 vehicles, got the nod to purchase the motor cars. The senior AGD employee said the department was still awaiting a response from the Transport Authority.
Efforts to contact members of the management team of the Transport Authority were unsuccessful yesterday as they were said to be in a management meeting.
The Transport Authority Act, Section 13 (3) (c), provides that, where a vehicle has been seized, "if the vehicle remains in the possession of the police or the Authority for more than six months, it may, subject to such conditions as may be prescribed under the Road Traffic Act, be sold by the police or the Authority to recover the cost of storage".
You mean that there were no parts on any of those vehicles that valued more than they were sold for.
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