In search of public accountability

Claude Robinson

Sunday, December 04, 2011

In the wake of the deepening scandal over reckless spending of billions of dollars on the controversial Jamaica Development Infrastructure Programme (JDIP), Prime Minister Andrew Holness moved decisively in the past week to limit political damage and establish some credibility for his pledge to set a new standard of public accountability.

Following the firing of National Works Agency (NWA) boss Patrick Wong for policy violations and simultaneously assuming direct responsibility for the programme, the prime minister late Tuesday night demanded the resignation of Mike Henry from the transport and works ministry and the Cabinet.

In an interview with Cliff Hughes on Impact aired on TVJ Thursday night, Mr Holness said he made it clear to the veteran politician and Jamaica Labour Party (JLP) chairman that his position in the Government "had become untenable" and inconsistent with the standard of governance he has been talking about since assuming the premiership October 23.

A lot more needs to be done to uncover the full story of what appears to be large-scale corruption in the awarding and monitoring of contracts under the road rehabilitation and development programme funded by a US$400-million loan from China and which will have to be paid back by the Jamaican taxpayer.

In the weeks ahead, more revelations are likely. That's the word from Dr Omar Davies, the Opposition People's National Party (PNP) spokesman on transport and works and the man who has been the most consistent critic of JDIP. Indeed, it was his request for an audit that led to the shocking discoveries by the auditor general.

Separately, Contractor General Greg Christie is carrying out his own investigations and the prime minister said he will await the outcome of that probe before taking any further action, including a forensic audit, into the entire sordid affair.

Interestingly, the prime minister did not rule out the possibility that investigations could unearth kickbacks to the ruling JLP but affirmed that he was prepared for any outcome: "What is to be discovered will be discovered." We shall see.

For more than a year the Government of former prime minister Bruce Golding had stonewalled efforts by Dr Davies and the Opposition PNP to get transparency and openness in the governance and management of JDIP.

Why was the project structured in a way that bypassed normal parliamentary oversight? How were sub-contractors selected and compensated? How were projects identified? What explained massive overruns? Were taxpayers getting value for money?

The stonewall began to crumble when Auditor General Pamela Monroe Ellis submitted her report confirming that the ministry and the NWA were spending money without regard to probity and prudence to ensure that the country got an economic return from which the debt could be serviced.

According to the auditor general, the NWA, the implementing agency for JDIP, was loose in its contract negotiations and often failed to inspect work it commissioned. There was no accountability. Further, the NWA used over J$102 million to refurbish and another $60 million to furnish its headquarters under procurement arrangements that, at best, appear quite dodgy and certainly unauthorised.

Then last week in Parliament's Public Accounts Committee, Dr Alvin Hales, permanent secretary in the transport ministry, revealed that the NWA had already overspent the US$100 million approved for the year ending next March and was contemplating spending another US$50 million without any approval. We were also told that the NWA had agreed to provide China Harbour, the main contractor, with an additional five per cent of the project sum, that is, an additional US$20 million or J$1.8 billion, apparently for doing nothing!

Apparently, these disclosures pushed the prime minister to disregard previous assurances from Mr Henry and quite rightly to demand his resignation.

However, removing Mr Henry and Mr Wong are necessary but not sufficient conditions to restore confidence in the project. It must be followed by a complete overhaul of the management and governance system; it must be brought under parliamentary oversight; and if criminal trails are identified, they must be followed regardless of where they lead.

A teaching moment?

The JDIP scandal can either be just another episode in a long and costly saga of maladministration, corruption and overruns on big-ticket public projects, or it can become a teaching moment to learn new lessons.

First, we must encourage and insist that the prime minister's pledges to establish and maintain new standards of accountability be honoured. The Opposition must be held to the same standards. Voters and civil society should punish political leaders and ministers who do not protect the treasury.

Politicians aside, public officials, whether in the established civil service or the more autonomous executive agencies, must follow the rules and, as the auditor general reminded, must be mindful of their "fiduciary responsibility to ensure that government and, by extension, taxpayers obtain value for every dollar spent".

They can't simply just go along with demands of headstrong ministers, anxious to deliver projects that may redound to the benefit of the ruling party.

Of course, they have to be smart enough to know the difference between principles and good governance versus using bureaucratic humbug and red tape to frustrate policies and programmes.

The Gleaner in an editorial on April 7, 2011, pointed out that our underdevelopment was not only the fault of politicians but also of the bureaucrats and other officials.

The politicians "were aided and abetted by a lazy, often incompetent, and mostly acquiescent public bureaucracy that facilitated its own usurpation by the executive. Having surrendered professional conduct and Westminster's line of demarcation between the political executive and permanent civil service, the bureaucracy found survival easier in its co-option to the partisan cause.

"But no country can be effectively managed and be globally competitive in the absence of an efficient and competent public bureaucracy. The Jamaican civil service, in this regard, has to liberate itself from domination by the political executive."

In several radio interviews last week, Dr Carlton Davis, the respected retired cabinet secretary, pointed out that there are guidelines and procedures to protect permanent secretaries who properly resist improper or illegal instructions from ministers. It is a matter of moral courage.

For the first half-a-century of our Independence the two main political parties have alternated control of the Jamaican state. They are again seeking support in the upcoming general election which the prime minister says he will announce tonight and which will be held sometime between Christmas and New Year.

We head for the polls when the average Jamaican is worse off than four years ago when the JLP won the 2007 election by less than 3,000 votes: The economy remains fragile with just marginal growth; poverty is on the rise; tens of thousands of jobs have been lost since the recession of 2008; educational outcomes are less than desired.

Reversing these trends at a time of deep indebtedness will be very difficult, whichever party wins the election. The task will be harder if the country does not get value for the inadequate money available. Over the next three weeks, we should pay attention to what our leaders say about management, governance and accountability.

kcr@cwjamaica.com

Do you feel buying into Facebook now is a good investment for the long-run?
	Yes
	No

View Results
Results published weekly in Sunday Finance

Username:
Password:

GCT to go down, white rum prices going up

In search of public accountability