'Rogue agency' - Phillips blasts NWA

— Another irregularity revealed at PAC

BY ALICIA DUNKLEY Observer senior reporter dunkleya@jamaicaobserver.com

Wednesday, November 30, 2011

DR Peter Phillips yesterday described the National Works Agency (NWA) as "a runaway rogue agency operating on its own without reference to the ministry, Parliament or anybody except perhaps the minister".

Phillips, who chairs the Public Accounts Committee of Parliament, made the scathing criticism on the heels of information from permanent secretary in the transport and works ministry, Dr Alwin Hales, that five 40-foot containers of furniture valued at $62 million, discovered by Contractor General Greg Christie yesterday on the premises of the NWA, had been procured using funds allocated for the Palisadoes Shoreline Protection and Rehabilitation Works Project.

The discovery was made two weeks after Auditor General Pamela Monroe Ellis, in a special audit report, revealed that contrary to the provisions of the government procurement guidelines, the NWA used the sole source method to award a contract for approximately J$102m to China Harbour Engineering Company (CHEC) to refurbish the NWA's corporate offices without the required approval of the National Contracts Commission.

It was the Opposition People's National Party Central Kingston member of parliament Ronald 'Ronnie' Thwaites who yesterday enquired of Dr Hales "what's in the containers we saw on TV last night (Monday night) on the NWA compound?" to which Dr Hales replied, "my information is that they contained office furniture and partitions".

According to Dr Hales, the furniture was not paid for out of Jamaica Development Infrastructure Programme (JDIP) funds but from loans procured under the institutional strengthening component of the Palisadoes Shoreline Protection contract.

The Palisadoes project is being executed by CHEC, the same contractors on the US$400-million JDIP. Dr Hales said the furniture was for NWA offices across the island.

"The public of the country is paying a bill, the details of which we don't know. It appears that when we elect a government, they presume that we give them unlimited powers to do exactly what they want to do on credit and then send us the bill. You spend $102 million refurbishing offices and another $60 million on furniture, this is fundamentally corrupt," an incensed Thwaites said yesterday, adding that it was a travesty of justice, especially where one man was last week sentenced to three months in prison for stealing 45 ackees from the property of the governor general of Jamaica.

Said Dr Phillips: "What is clear here is that you have a runaway rogue agency operating on its own without reference to the ministry, Parliament or anybody except perhaps the minister, and it was doing as it pleased with monies belonging ultimately to the people of Jamaica."

But Opposition committee member Fitz Jackson said: "I want to caution you, sir, it might not be a rogue institution but a rogue CEO."

The NWA's deputy CEO, who has been holding the fort since former CEO Patrick Wong was fired in the wake of the fast-moving scandal, also took issue with Dr Phillips' description.

"We don't want it communicated that the agency is a rogue agency," Earl Patterson said yesterday.

Dr Phillips, who noted that he in no way wished to impugn the character of all the individuals employed to the NWA — the majority of whom he felt were decent, law-abiding citizens — said it could not be denied that "there was a direct robbery of the Jamaican people".

"The persons who did it should be held accountable. The Jamaican taxpayers have been robbed in the way this project was conducted," Dr Phillips said. He charged that the Government had deliberately taken the decision to operate the project outside of the budget books to avoid parliamentary scrutiny which, he said, would have noted the irregularities long before now.

"It is necessary that the contract be renegotiated," Thwaites added.

Before being given his walking papers, Wong — in apologising for what he said was the "confusion" emanating from Monroe Ellis' revelation about the funds used to refurbish the office — said "in the contract itself, of the US$400-million, US$2.5 million was set aside for institutional strengthening".

"It covers refurbishing of the corporate offices, computers, training and technology transfer for the people involved in the project," Wong said at the time.

He said the refurbishing, which began in October 2010, was required because of the nature of the project and the deplorable condition of the office. "It's not that we took money away from the loan for refurbishing, this US$2.5 million was always available," Wong said.

Meanwhile, the Office of the Contractor General (OCG) yesterday said it had began investigations into the procurement by the NWA of the $62 million worth of office furniture.

The OCG said its decision to commence the probe was taken after an internal review was undertaken of the sequestered documents and the preliminary statements that were made to members of the OCG team by Patterson and Dr Hales, among others.

The OCG said among the factors which prompted the probe was the fact that the initial representations which were made to the OCG representatives by Dr Hales and Patterson "were such that it appeared that both gentlemen were uncertain of the source of funds which were used to facilitate the purchase of the referenced office furniture".

The OCG said it has also found and confirmed that the amount of $61,849,388.87 was approved and signed for by Wong, by way of a letter to CHEC which was dated July 15, 2011, for the procurement of office furniture which was to be charged to the "institutional strengthening item of the contract".

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COMMENTS (32)

R- Cool
11/30/2011

Until us Jamaicans remove this desease of party loyality in defending their corrupted behaviour. Then we might have a more productive run Ja. Who cares what happens 181/2 years ago. Capitalize on those mistakes, and stop living in the past, by using the blaming games. Is right if your sister break the dishes. Does this give you the right to break also.
Corruption vengeances and revenge does not solve our economically problems. Corruption is rampant and should be dealt with when EXPOSED. JLPNP

Luv Quest
11/30/2011

Mr. Shaw suggested that Operation PRIDE was "a cesspool of corruption." In answering questions about the way contracts were being awarded under Operation PRIDE, he (Dr Blythe) took a document to Parliament which detailed exactly what Audley Shaw, chairman of the Public Accounts Committee, and JLP spokesman on finance, had suggested - that the awarding of the contracts was biased in favour of a couple of contractors who were known PNP activists. A lack of contracts transparency was also revealed.

Eddie Barrett
11/30/2011

All about campaigning, they all make mistakes, but to generalize that an agency of the government is rogue, is definitely an insult to the others who are doing an honest job there. Phillips need to have the guts to point the blame where it belongs.

kevin sanders
11/30/2011

It doesn't matter which party is in power. Corruption is corruption. And the sad thing is that most of you bloggers seem to be defending or making excuses by pointing fingers rather than condemning the actions of these fat cats whether pnp or jlp who will one day leave office rich and wealthy while we the poor will be paying for it. Grow up guys, this is serious business. All, and I mean all corrupt officials should be sent to jail for a long long time.

joyce bennett
11/30/2011

Peter phillips will have to resign after they go to court over the Trafigura affair.

Island Patriot
11/30/2011

"Peter Phillips for Prime Minister"! The same man who signed over our Jamaican rights in a secret MOU, the same man that behind closed doors expresses utter distrust of his own party leader and then prime minister (PSM) competence of running (more like RUINING) the country...Good one..

Island Patriot
11/30/2011

Nadine Johnson & other "comrades" the hypocrisy of your statement, "If we see the PNP in any Corruption we as citizen will call the same faith we are now calling on the JLP", really? The same PNP who are fighting tooth and nail to have public access to the Trafigura trial repressed? The same PNP who downplayed the FINSAC debacle. Oh come now, lets be fair, the standards that the JLP are held against should be the same toward the PNP and any other political party if we want a better Jamaica.

Peter Sparks
11/30/2011

Is how Peter Phillips can talk bout' "Rogue Agency" when him sign whey' Jamaican rights (MOU) so that foreing interlopers can eavesdrop pon'' our (Jamaican people)telephone conversations? De' man haff' shut him mout'...Kiss teet'!

howie J
11/30/2011

Peter Phillips for Prime Minister.

Anthony James
11/30/2011

Thank God for Contractor General Christie, and now this goodly Auditor general lady...there might be a sliver of hope for Jamaica after all? I really hope you both maintain your integrity and not disappoint like that man who has now sullied his good name in scrap metal and drug smuggling.
If there is a fund for the protection and compensation of the OCG and Auditor general, I will definitely contribute! Big them up!

Tom Stroke
11/30/2011

While I understand the need for the PNP to “run wid” something since they appear not to have any substantial plan for moving Jamaica, I still cannot see this abundance of corruption that has been unearthed. As Mr Wong explains, the refurbishing of the building was necessary since it was in a bad condition. I see no one has disproved that yet. Was it not reported that the NWA was getting some new staff? Were they to be placed in buildings that were in need of repairs? So some furniture and office partitions were discovered, where was the staff to sit and the new computers that is supposed to be used to effectively run the project be placed on? The floor? Until I hear that we did not get value for money for the building and furniture I see no corruption. At least we are not hearing that the money was used to pay Dons to prevent demonstrations.

Authnel Reid
11/30/2011

DID THE USA DEMAND THAT MIKE HENRY RESIGN? I DOUBT IT!! THE USA DOES NOT MEDDLE IN OUR INTERNAL AFFAIRS (dwl) "Well if it no go soh it nearly go soh"

joyce bennett
11/30/2011

Peter Phillips please lets talk about the Trifigura affair NOW. JLP are going to win by a land slid.

kevin sanders
11/30/2011

Another furniture scandal. Haven't we been down this road before. And prior to this it was JDIP and the Bridge to nowhere, Scrap Metal, Bird Hunting, Stolen Sand, Missing Chairs & Carpet, Dudus, Trafigura, Cuban Light bulb, Operation Pride, etc, etc, etc. Lo and behold, no one even goes to jail. Now I see why so many people want to get into politics. And in all this no one even goes to jail.

joyce bennett
11/30/2011

when people say the PNP are corrupt that's because most of them are. We are all waiting to hear about the Trifigura affair. Remember in the last debate Portia found money, i wonder if she found it under her bed.

joyce bennett
11/30/2011

Now we want to hear about the Trifigura affair, lets see how many people resign over that.

wanda woeman
11/30/2011

@O ok for years you people used statements like for the “18 years of the PNP running Jamaica into the ground,” the most corrupt government ever,” and other statements like that. Just as you took the phrase by P.J. Patterson, “The law is not a shackle, “ out of context and repeated it ad nauseum with the hope that if something is repeated often enough it will be believed. You did not bring any evidence of this but followed your guru who ruled the airwaves for five days a week and AS who found something under every bush; the same Henry who now squeals about lack of patriotism when they are found out. Now we a Minister whose visa was taken away, a PM having to leave office before his term is complete and a powerful minister who has “resigned,” as evidence of JLP malfeasance and still you try. None of these have ever happened before in Jamaica’s history.

Adam Godson
11/30/2011

(contd) jamaican agri exports to the USA were recently banned was also shown to be untrue?
@wanda woeman ,I as a JLP supporter am disturbed by this episode,but I will not even bother listing the number of scandals from the previous admin,because you are not to be convinced,so keep repeating that this is the most currropt govt ever.
How many did the honorable thing and resigned from the previous admin(and did not threaten to return)
At least some are capable of remorse.

Adam Godson
11/30/2011

@wanda woeman, should rouges be sent to prison even if the laws do not prescribe incarceration?
I mean,some have left office proclaiming 'I shall return" May be you are right.
(@) Nadine johnson,you mention scrap metal looming.What is looming? An explanation has been given for allowing the recent exports.
Or are you talking of hylton's linking scrap metal exports to drug finds? The claim that has been discredited by both local and overseas law enforcement?Just like mr hylton's claim that

Adam Godson
11/30/2011

(contd) henry is politically responsible for the JDIP scandal,doesn't make him neccesarily criminally responsible.Just like in the furniture scandal of the 90's,no pnp official was deemed criminally responsible.I doubt if any even resigned.
@mike williams under another newspaper,under its present owners the headline would read SCANDAL.but not if it applied to another party,but you wouldn't have a problem with that now would you.
(@)wanda woeman were you sleeping between 1990 to 2007?

Luv Quest
11/30/2011

Dr. Blythe responded with a report which showed that billions of dollars in money from his ministry had actually been spent by the Provident Societies on contracts, mostly administered by companies owned by Mr. Black and Mr. Williams. The PNP have being doing this for 18½ yrs they know the smell of corruption they can sniff it out; it is a familiar smell that they are use to. Come on comrades both parties should be held accountable. Trafigura is coming up soon :)

Luv Quest
11/30/2011

In April (1997), Auditor-General Adrian Strachan tabled a report in Parliament which said that he had detected numerous irregularities in Operation PRIDE, then under the Ministry of the Environment and Housing headed by Easton Douglas. Mr. Shaw suggested that Operation PRIDE was "a cesspool of corruption."

Adam Godson
11/30/2011

You are correct peter philips. Too long in jamaica officials act as if public funds are their own to do with as they wish.
Job well done PAC and OGC.
Good to see the back of a minister responsible for a debacle falling under his ministr,wether voluntarily,or he was pushed.
And glad no "i shall return" arrogance is present.
@nadine johnson,can you imagine how much better off this country would have been if the pnp had fought corruption when in govt as it is doing in opposition? And because mike

renrick hall
11/30/2011

When people speak of the corruption that was in the PNP during the time of their governance, I tell them thet it is because the JLP is in opposition why they look "pure" - "nuh better herring, nuh betta barrel." I hope this crap will one day be a thing of the past. Let the chips fall where they may and those who abuse the people's trust, because they can, be called to book sooner than later. Mike Henry has resigned but the PM is to do what is truly required. Step up PM, step up!

Stephen Fox
11/30/2011

There is no evidence of corruption here. The loan documents with the Ex-Im Bank should be made public to substantiate Mr Wong's claims. After all institutional strengthening is not a bad thing. If monies were mis-appropriated then let us see the details. Running around and claiming scandal and corruption is mischievous unless evidence is present. So far it does not seem to be there.

0o k
11/30/2011

LOL it has suddenly become a rogue agency in four years?
In the 18 years of the PNP running Jamaica into the ground the NWA and many other so-called Executive Agencies was Tool #1 in enabling the destruction!
Comrade Dr. Peter David Phillips, you should know that very well.
I say kill off these Executive Agencies now and return their functions to the Permanent Secretaries where they properly belongs.

wanda woeman
11/30/2011

@Nadine, if the PNP ever gets into office and behaves in this way...no, half the way this govt has behaved, then we should use every fiber of our being to remove them from office. After all they had the benefit of seeing the most corrupt government in office operating.
Not only should rogues be removed from office but they should be sent to prison. We need an independent office with teeth to investigate and take criminal action against anybody, Minister or otherwise, JLP or PNP.
Country 1st.

Mike Williams
11/30/2011

Under another government lead by others, the headline would be the familiar SCANDAL in bold print. But then again a particular news paper replace that headline when it apply to this government with the now familiar misstep. In listening to nationwide news yesterday Dr. Hale seems like a lost man as everything was above his head. The goodly Dr. may be fired or better yet arrested on things he is clueless about. It was alarming listening saga as it played out on the radio.

RED ANTS
11/30/2011

Calm down Peter,cool it.I know you are upset but let's find the real culprits and send them to prison.I would advise the public servants to tell what they now and clear their names if so be it.A name as surface on a receipt as the purchaser of the furniture,what the J mean?This is why i am saying the police must get involved because this a criminal case.Seem like the minister have a crush for 60M.

Nadine Johnson
11/30/2011

I Like the way the PNP Opp stand up on all these Corruption and Scandal in the JLP Gov. This is the way a opp must operate and I hope when the PNP get in Office you will perform with Dignity. If we see the PNP in any Corruption we as citizen will call the same faith we are now calling on the JLP. Now do anyone think Mr Henry will wear short pants like Jag Smith? Will PM Holness call it now? Any more Corruption in the JLP the scrap metal looming.

Jay Brown
11/30/2011

When will Jamaicans learn to act above board ! Frankly these days I am sometime ashamed to be associated with Jamaica a country which reeks of scandal an impropriety which now seems to occur in every single Jamaica project since we became an independent nation.
While we are struggling to run a project properly , Barbados , TT and the rest of the caribbean have not only got that right, they have also figured out how to run their respective countries after independence. When will we get it ?

fall mouth
11/30/2011

This man is probably one of the most arrogant ever to grace the hallowed halls of Gordon House. I can see this coming from a youngster, but as an elderly man who must know that power is transient, he behaved as if his rule of the roost would be forever. No matter how powerful and mighty we are, we all put on our trousers one foot at a time.
Can anyone even begin to think of poor mild mannered Mr. Wong daring to question one of his directives?
How have the mighty fallen. Good riddance.

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'Rogue agency' - Phillips blasts NWA