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Another Solid Waste stink! - Contractors demanding more than $100m owed to them by Government over an eight-year period - State Minister says it is shameful that the Gov't owes the contractors
published: Tuesday | May 8, 2007
Tyrone Reid, Enterprise Reporter
ANOTHER STINK is rising at the Government's garbage collection company - the National Solid Waste Management Authority (NSWMA) - which is threatening to embarrass the Ministry of Local Government once again.
This latest saga, which involves 50 contractors whom the NSWMA reportedly owes in excess of $100 million for services provided, may cause a literal stink as 45 livid contractors have issued a 24-hour ultimatum to the Government to pay up or face an extensive shutdown of the sector.
"We are talking about a massive shutdown," said an incensed contractor who spoke with The Gleaner yesterday on conditions of anonymity.
The contractors who cover the parishes of Kingston and St. Andrew, St. Catherine, including Portmore, St. Thomas and Clarendon, are hopping mad that despite their unsettled claims, the Ministry of Local Government and Environment has put the new contract for public cleansing to public tender. The contractors fear that this move will eject them from the system and into bankruptcy.
They argued that the non-payment is preventing them from successfully bidding on the contracts most of them have retained for 15 to 20 years. Bidding ends on Tuesday May 15.
Harry Douglas, Minister of State in the Ministry of Local Government and Environment, told The Gleaner that it was not a matter of debate that the government owes the contractors. The issue at hand is how much. "Yes we owe them but the figures we are not sure about," said Mr. Douglas, who has portfolio responsibility for the NSWMA.
Mr. Douglas, who pointed out that he went to the Ministry in March 2006, said that it was a shame that the government still owes the contractors. "It is embarrassing because the buck stops with me, but I can't turn back the hands of time," he said. However, he gave the assurance that the matter would be dealt with appropriately.
Also, Mr. Douglas contended that the new requirements outlined in the tender document are in an effort to clean up the waste in the garbage collection system. The requirements include one per cent of the annual contract price as a tender bond and those who bid must own their own trucks or show that they are financially able to do so if awarded the contract. An adamant Douglas said for too long taxpayers have been bleeding. "We are regularising the thing ... over the last five years you know how much of taxpayers money go down the drain."
Mr. Douglas stopped just short of saying that it was a literal free for all. "The way things went the period before now we were not getting value for money," he said.
However, the contractors believe that is hogwash. The contractor told The Gleaner this latest move is a political move to bring the "big boys" into the business.
Dean Peart, Minister of Local Government and Environment, who succeeded Prime Minister Portia Simpson Miller in March 2006 after she became Prime Minister did not respond to messages left on his voicemail.
When contacted, Christopher Powell, acting executive director of the NSWMA, told The Gleaner that the issue at hand "is an old claim that the new people inherited". Mr. Powell, who took up the gauntlet at the garbage collection company in mid-December last year said he could not comment in full on all the issues. However,he admitted that the government does owe the contractors. "The only thing confirmed as owing is the minimum wage adjustment. The other claims are to be verified by the Ministry," he explained.
Also, Mr. Powell declared that the NSWMA experienced some difficulties in verifying the claims being made by the contractors because some of the documents could not be found at the state-owned agency. When asked how was it possible for important documents of that nature to be misplaced, with a chuckle Mr. Powell said, "I couldn't tell you that. That was before my time."
While Mr. Powell said he knew that the contractors were incensed over the issue, he blamed them for the NSWMA's delay in making payments. "They were going to be paid the minimum wage money but then their lawyer wrote that letter (to the Ministry)É" he said.
He said the letter notified the Ministry that the contractors were adjusting their claim for outstanding payments from 1999 to 2006 to 1996 to 2004.
However, Mr. Powell's argument was written off as farce by one of the contractors who explained that the letter to the Ministry was a mere formality after their auditor and the auditor from the Ministry met and discussed the claims. The contractor also pointed out that the minimum wage payment was not affected therefore it could not have been the basis for the non-payment of that claim.
published: Tuesday | May 8, 2007
Tyrone Reid, Enterprise Reporter
ANOTHER STINK is rising at the Government's garbage collection company - the National Solid Waste Management Authority (NSWMA) - which is threatening to embarrass the Ministry of Local Government once again.
This latest saga, which involves 50 contractors whom the NSWMA reportedly owes in excess of $100 million for services provided, may cause a literal stink as 45 livid contractors have issued a 24-hour ultimatum to the Government to pay up or face an extensive shutdown of the sector.
"We are talking about a massive shutdown," said an incensed contractor who spoke with The Gleaner yesterday on conditions of anonymity.
The contractors who cover the parishes of Kingston and St. Andrew, St. Catherine, including Portmore, St. Thomas and Clarendon, are hopping mad that despite their unsettled claims, the Ministry of Local Government and Environment has put the new contract for public cleansing to public tender. The contractors fear that this move will eject them from the system and into bankruptcy.
They argued that the non-payment is preventing them from successfully bidding on the contracts most of them have retained for 15 to 20 years. Bidding ends on Tuesday May 15.
Harry Douglas, Minister of State in the Ministry of Local Government and Environment, told The Gleaner that it was not a matter of debate that the government owes the contractors. The issue at hand is how much. "Yes we owe them but the figures we are not sure about," said Mr. Douglas, who has portfolio responsibility for the NSWMA.
Mr. Douglas, who pointed out that he went to the Ministry in March 2006, said that it was a shame that the government still owes the contractors. "It is embarrassing because the buck stops with me, but I can't turn back the hands of time," he said. However, he gave the assurance that the matter would be dealt with appropriately.
Also, Mr. Douglas contended that the new requirements outlined in the tender document are in an effort to clean up the waste in the garbage collection system. The requirements include one per cent of the annual contract price as a tender bond and those who bid must own their own trucks or show that they are financially able to do so if awarded the contract. An adamant Douglas said for too long taxpayers have been bleeding. "We are regularising the thing ... over the last five years you know how much of taxpayers money go down the drain."
Mr. Douglas stopped just short of saying that it was a literal free for all. "The way things went the period before now we were not getting value for money," he said.
However, the contractors believe that is hogwash. The contractor told The Gleaner this latest move is a political move to bring the "big boys" into the business.
Dean Peart, Minister of Local Government and Environment, who succeeded Prime Minister Portia Simpson Miller in March 2006 after she became Prime Minister did not respond to messages left on his voicemail.
When contacted, Christopher Powell, acting executive director of the NSWMA, told The Gleaner that the issue at hand "is an old claim that the new people inherited". Mr. Powell, who took up the gauntlet at the garbage collection company in mid-December last year said he could not comment in full on all the issues. However,he admitted that the government does owe the contractors. "The only thing confirmed as owing is the minimum wage adjustment. The other claims are to be verified by the Ministry," he explained.
Also, Mr. Powell declared that the NSWMA experienced some difficulties in verifying the claims being made by the contractors because some of the documents could not be found at the state-owned agency. When asked how was it possible for important documents of that nature to be misplaced, with a chuckle Mr. Powell said, "I couldn't tell you that. That was before my time."
While Mr. Powell said he knew that the contractors were incensed over the issue, he blamed them for the NSWMA's delay in making payments. "They were going to be paid the minimum wage money but then their lawyer wrote that letter (to the Ministry)É" he said.
He said the letter notified the Ministry that the contractors were adjusting their claim for outstanding payments from 1999 to 2006 to 1996 to 2004.
However, Mr. Powell's argument was written off as farce by one of the contractors who explained that the letter to the Ministry was a mere formality after their auditor and the auditor from the Ministry met and discussed the claims. The contractor also pointed out that the minimum wage payment was not affected therefore it could not have been the basis for the non-payment of that claim.
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