JDIP audit to begin April 2

BY ALICIA DUNKLEY Observer senior reporter dunkleya@jamaicaobserver.com

Thursday, February 23, 2012

A forensic audit of the US$ 400-million Jamaica Development Infrastructure Programme (JDIP), which has come under scrutiny over allegations of gross mismanagement, is to begin in April this year.

Transport and Works Minister Dr Omar Davies, in a statement to Parliament Tuesday, said the request for proposals was sent to six local and international firms. He said the close-off date for the receipt of the proposals is February 29. A contract is expected to be signed on March 29, while the audit is expected to begin on April 2.

In January Davies, immediately after his People’s National Party took over the reins of government, announced that as at December last year the combination of funds actually disbursed, work orders certified for payment and the value of the works committed amounted to just over US$398 million.

“This means that if as minister I accepted the status quo, all but US$1.8 million of the US$400-million loan which was scheduled to be expended over a five-year period would have been totally completely committed before the end of the second year of the programme,” Dr Davies said then, adding “let me make it abundantly clear, I am speaking on behalf of the administration that we will not accept this situation.”

He said that expenditure to date means that the Ministry of Finance, which was required to find US$15 million as the Government’s counterpart funding of the US$100-million budgeted to be spent in fiscal year 2011/12, now has to find a further US$15 million to deal with the over-expenditure already made in this fiscal year.

In the meantime, the transport and works minister said a further assessment has revealed that there are some 33 JDIP projects identified by former minister under the JLP administration, Lester ‘Mike’ Henry, which cannot be implemented because “there are no funds available”.

He promised to make the list of projects available to Parliament.

In addition, he said he had been informed that the final expenditure on additional “rehabilitation works” and “routine maintenance” had not yet been settled as some of the projects listed on the issued work orders were not implemented.

“When those figures are finalised, Parliament will be informed,” Dr Davies said, noting that he was probing what was involved in the “routine maintenance programme” for which nearly US$21 million had been committed.

“I discovered that the activities, in so far as they actually occurred, took place in December 2011 (general election period) and mainly involved bushing. There is nothing inherently wrong with bushing but the commitment to spend $1.8 billion on bushing in one month is worthy of note. It certainly raises questions about the sincerity of those who now seek to criticise labour-intensive activities under the JEEP (Jamaica Emergency Employment Programme),” Dr Davies argued.

But Opposition spokesperson on transport and works, Karl Samuda challenged Davies to identify any “impropriety” or contractual deficiencies under the project and provide those details to Parliament.

Meantime, Henry — who lost that portfolio and responsibility for the programme before his party lost the December 29 general elections last year — also sought to defend his stewardship in the form of questions posed to Dr Davies. He went further to accuse Dr Davies of misleading the Parliament in all his pronouncements about the programme since taking charge.

Dr Davies replied, “I have no intention of conducting my own forensic audit ...let the chips fall where they may.” He charged that the previous government displayed no fiscal prudence in the management of the programme and “gave out work willy-nilly”.

“They violated every single rule, the truth will come out. You will deal with the truth, you will hug up the truth,” Dr Davies said.

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COMMENTS (15)

osean J
2/24/2012

let the chips fall where they may!

Kevin Forge
2/23/2012

Near the beginning of January the former Prime Minister was being called dishonest and worse because he ordered an audit in December and it was not yet started a month later. Now the same people who attacked him then, while telling us they would be ordering an audit are coming back nearly two months later to say it will be another month before the audit can start.
Fascinating display of duplicity, double standards, hypocrisy and some other words that can't be published here.

Cosford Roberts
2/23/2012

@ Sean H., we need to be careful what message we send to our government. What is important? Your country or your party? Did you notice also that the Hibbert matter was not mentioned? That is because both Hibbert and Spencer are are already being addressed. Let the PNP Gov't do their job and hold them to the same or higher standards. Jamaica can only get better if we do it that way and we the people must take a stand. We in the Caribbean must change. Where is our shame or better yet, PRIDE?

J A M
2/23/2012

This seems to be blatant and barefaced corruption. The people of this country has been robbed blind by who were in power

R Oaches
2/23/2012

Aren't there records to indicate the payments for jobs completed and/or jobs to be carried out ? If these records do exist, and it is ascertained that these jobs were necessary, is there a case for corruption ? Is it that "friends" were paid for services which they did not render ? Did the govt pay too much for services it received ? I'm really trying to understand where corruption lies in this JDIP issue. Is it corruption or mismanagement ? ... two different things.

Sean H.
2/23/2012

Who is the finance minister again ?
*
PS: Notice that there is nothing on the Cuban lightbulb issue?

ras london
2/23/2012

@John Christian - regardless of Omar's past if this situation warrants investigation, which the auditor general and contractor general says it does, why is that a problem? Should not every penny of our tax dollars be accounted for or you don't mind if it's stolen as long as it's someone in a green shirt.
@ticky ticky fish - I agree that the funds should stay here but this is one exception where I would allow foreigners who have no axe to grind and cannot be accused of political bias.

J L
2/23/2012

If Davis is to be taken serious he would have the list of those 33 projects that are without funding ready for display since the info is already recorded. Where is the audit by the Contractor General, maybe that would help? Davis should begin this audit on April Fools(a sunday), why wait till the 2nd? So far it's looks like just propaganda; fodder to roll out the jeep and snare another election win.

Nejeeper KNG
2/23/2012

Where is the logic in taking funds from a program that needs to be audited and fund another program? This JDIP funds is like blood in shark infested waters, look at the frenzy. It is sad to see the way the previous and present Admin treat borrowed money. This is the way they swim around borrowed money trying to sink their teeth into it. We have too many “Ginals”....people who go into politics to fool us with soap opera drama while they make off with the loot; and left taxpayers with the bills.

Jay Brown
2/23/2012

So it has taken 4 months for the audit to begin.
1. How much is it likely to cost?
2. What are the deliverables?

larry smith
2/23/2012

"let the chips fall where they may"sure they will fall. at the end there will be business as usual.i would like to know how much of these 33 projects will be completed by this administration. which of these so-projects will be pushed aside,to make way for the jeep.so we will see the circus as usual verbal attacks , shouting accross the isle.lets hope that they wont be wasting millions to get to the bottom.because the jdip audit,will just be awaste of time.scandal after scandal is a way of life.

Al Vanawic
2/23/2012

I cannot believe in 30 days Prince Andrew allowed so many mis-steps to occur, spending nearly 2billion in 30 days. Who got that money? There is nothing to defend, Mr. Samuda, if the JDIP money is not there please tell us where it is, and the argument done. This would save the country another costly investigation or audit for that matter. Just show us the money or please wait for the independent audit, then you can refute the findings, if necessary.

tickyticky fish
2/23/2012

The funds that will be spend to audit JDIP should stay in Jamaica at a time when Jamaica has its economic woes (troubles). @ Dr. Omar Davis why "request for proposals was sent to six local and international firms?" Dr. Davis you should be advocating for Jamaicans to "buy Jamaican." and be an example.

John Christian
2/23/2012

Minister 'run with it' has found a cause to temper any impending crticisim of his previous misdeeds....political theatre is alive and well in Jamdown.

wanda woeman
2/23/2012

Just make sure Minister that consensus be arrived at as to who is to do the work since we don't want the findings to be refuted by the Opposition. They are just waiting to say, if it goes against them, that it was somebody handpicked by the government to arrive at a certain finding. When you know who you are up against act accordingly.

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JDIP audit to begin April 2