The NWA and the JDIP

KEN CHAPLIN

Tuesday, November 29, 2011

ONE of the things that marred the government of the People's National Party during the more than 18 years it was in office, was the alarming cost overruns on government projects, especially road construction which was a gravy train for some party supporters. Two of the expensive cost overruns involved the North Coast Highway which escalated from US$25 million to US$75 million and the Montego Bay to Ocho Rios Highway which increased from US$60 million to US$176 million. In one particular case, a road which was included in a programme and on which work was purportedly done never existed. This does not mean that the PNP Opposition should not question cost overruns. It has a right to do so on behalf of the people of Jamaica. If the JLP while in Opposition soft-pedalled on such matters, that was its business.

One expected that under the Jamaica Labour Party government which replaced the People's National Party government in 2007, the apparent gravy train would stop. But not so. There have been some alarming overruns on government projects under the Jamaica Development Infrastructure Programme (JDIP). Here are two examples of massive cost overruns under the present government. The Cassia Park bridge which was estimated to cost $52.4 million in 2005, is now being constructed at a cost of $154.2 million. The Queensborough bridge, estimated to cost $45.5 million in 2005 is now estimated to cost $183.7 million. There are two factors to be considered in these cases: low bid by contractors at first in order to get the job and then increasing costs after work has begun, or inflation. This has been happening for many years.

Notwithstanding, the cost overruns seemed high and the country anxiously awaits the report of the independent investigative body, set up by Prime Minister Andrew Holness to probe all of the JDIP projects. In the meantime, Holness has removed the JDIP from the Ministry of Transport and Works to the Office of the Prime Minister and has set up an investigative body to review the programme. The review is due to be completed in another two weeks. This is where the policy of the present government differs from that of the past PNP government. It does not allow matters to slide, but acts quickly and firmly. It is a good sign for the future.

One of the most amazing aspects of the whole JDIP affair is that the National Works Agency used the sole- source method to award a $102-million contract to the China Harbour Engineering Company to refurbish its headquarters without the approval of the National Contracts Commission. This method of awarding such contracts has been done before. What is alarming is that the money was used by the NWA to refurbish its own offices when there are so many life-threatening roads in the country in need of repair. The refurbishing of the office could have waited and the money put aside for the repair of such roads which carry heavy traffic like the Stony Hill Road. At the centre of the corner of Red Gal Ring there has been a hole about 12 inches deep and 36 inches in diameter for more than six months. Further up the road there are a number of places with huge potholes across the road for more than six months and they have caused several accidents. Up in Sherbourne Heights whenever the central government's main road from Stony Hill to Guava Gap is blocked by landslides, traffic uses Sherbourne Drive and Baden Powell Road, both KSAC roads, to and from Stony Hill to Guava Gap. This has caused heavy damage to the roads which citizens have to maintain, because neither the NWA nor the KSAC has repaired them for the past 15 years. Representation to the Ministry of Transport and Works was said to be brushed aside by Patrick Wong, former chief executive officer of the NWA.

Wong forced to resign

The auditor general, Pamela Monroe Ellis, a fearless professional, has lashed both the Ministry of Transport and Works and the NWA for not executing the JDIP in a transparent manner. Seriously, she reported that the NWA did not provide documents to inform the audit of the negotiation of individual contract prices under the JDIP. Also capital project planning, monitoring and record keeping were inadequate .Minister Mike Henry must shoulder some of the blame for what took place. He has been a minister for a long time and should have known that such projects require his oversight, like Edward Seaga did when he was prime minister. It was not surprising that Wong was forced to resign by the government.

There was a welcome development last week when Senior Resident Magistrate Judith Pusey fined Wong $10,000 after he pleaded guilty to two counts for breaching the Contractor General Act. He was summoned to court following a ruling by the director of public prosecutions after he was accused of failing to answer a lawful request by the contractor general in relation to the award of contracts by the NWA to contractors in St Catherine.

This case really illustrates that the NWA or any organisation, or civil servant for that matter, should not fool around with the Contractor General Act.

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COMMENTS (10)

joyce bennett
11/30/2011

The PNP ran the country into the ground. Now the JLP will rebuild Jamaica without corruption.

ammis willo
11/29/2011

LOL @ "... the present government differs ... It does not allow matters to slide, but acts quickly and firmly...."
How can this statement be true ? when there are so many incidents of this govt being SLOW to act such as Danville Walker yet to face any sanctions for allowing scrap metal exports outside of the conditions outlined by the Cabinet...Mike Henry still a Minister despite the JDIP breaches identified by the auditor general.

Nejeeper KNG
11/29/2011

It is hard to believe that with the current state of the roads in JA that NWA/JDIP did not take a more serious approach to address the problem. “What is alarming is that the money was used by the NWA to refurbish its own offices when there are so many life-threatening roads in the country in need of repair.” These agencies are just for name sake; on a scale of 1-10 these agencies are 4 or less they are not even performing at 50% in terms of efficiency/productivity. This is misrepresentation.

ghost rider
11/29/2011

@Leon Archer, like you I don't bother to read Ken Chaplain's columns because we know what they are all about. After reading the first two paragraphs that is it with me. My wonder though is that these people in the twilight of their years sacrifice their integrity and legacy to protect the indefensible and the party` of their choice.
The sad thing is that they don't realize that what they are trying to do is not really being done, because people don't take them seriously or believe them.

Mark Forbes
11/29/2011

Well Mr Chaplin, you are still citing PNP excesses to excuse the party that told us it was not into corruption. I have to say though, if you have to do it, this is the way to do it.
I can remember ex-PM Golding promising to appoint a consultant to deflect the increasing concerns about this program and you say the Govt. didn't let it slide? When from day 1 there were concerns and it still reached to this? You must mean that they attached wheels and a rocket engine not being content with sliding.

Leon Archer
11/29/2011

I must congratulate Caleb Barrett for his patience in reading Ken Chaplin's column, I don't anymore. I only read the comments under the article. To see the obvious lies coming from a guy who knows how our Govt. system is supposed to work is really mind boggling.
Can someone suggest to Chaplin that he uses his vast experience to teach our younger politicians, both JLP and PNP, how Parliament and the rest of Organs of Govt. are supposed to work within the framework of the Constitution.

J L
11/29/2011

How can a bridge originally estimated at $52.4 million in 2005, now has a cost $154.2 million? The problem seems to be not so much the overruns but that the original bidding process is flawed. Did the contractor general look into this?

0o k
11/29/2011

The over-runs under this project is indeed alarming.
Maybe I am wrong but I don't see calls for the NWA to be scrapped?
I think it is obvious that the NWA should be abolished and The Works and Construction Ministry re-establish the PWD.

Caleb Barrett
11/29/2011

My question to Ken Chaplin is: why are you relieving yourself of any credibility? This is excuse and rubbish.
You say there were no good reasons for the escalation of the North Coast Highway, even though in that case there was a genuine increase in the scope of work, etc. Also, the extensions were brought to Parliament!
Compare that to JDIP, where there's no accountability because it was hidden from Parliament. So no oversight on purpose! And then you make excuses. Have some integrity Mr. JLP.

ghost rider
11/29/2011

The writer says that Minister Henry should some of the blame for what took place but does not think the blame stops with the minister and that he should resign. He does not think it surprising; however that Wong a functionary was forced to resign by the government.
He has been associated with government long enough; however, to know that he is talking nonsense and that he is only trying to defend the JLP as is his usual wont.

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The NWA and the JDIP