Acquisition of Air J without tendering unlawful, says OCG

Wednesday, February 17, 2010

THE Office of the Contractor General (OCG) yesterday advised lawyers for the Jamaica Airline Pilots Association (JALPA) that it would be unlawful to acquire Air Jamaica, other than through the Government's tendering process.

According to a release yesterday from the OCG, JALPA, through its lawyers, advised that it wanted to acquire the airline through the Employee Share Ownership Plan (ESOP), "without subjecting themselves to a tender process as neither the legislation nor the amendments thereto provide for same."

Contractor General Greg Christie, in response to JALPA's lawyers, said:

"...Should the Government of Jamaica choose to set aside the public competitive tendering process, which it has embarked upon to facilitate the singular desires of JALPA and/or the employees of Air Jamaica, or any other entity or special interest group, any such action would be viewed by the OCG as a fundamental violation of the Government contract award principles which are enshrined in Section 4 (1) of the Contractor General Act and, consequently, as an unlawful act."

He added that should negotiations break down with Caribbean Airlines, "the Government of Jamaica would be obliged, by law, to recommence the divestment of the airline via a new public competitive tendering process".

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COMMENTS (9)

Don Sparta
2/18/2010

I empathise with JALPA but I must be true to the issues and info given over the period.
Why did JALPA take so long to bid?
This lack of proper timing alone, tells me that "Them no Ready fi dis yet"
But don't worry JALPA, it soon soon come around again !
Caribbean Airlines themselves has proven to be a Big Joke in the past and I don't see that changing too soon!
ICU Jamaica

Winston G
2/18/2010

I agree with Francis Williams 100% on the blame the government deserves for NOT COMMUNICATING effectively on this matter.
Persons like Carl will always make those uninformed comments if the government continues to be so silent on important issues.
To Carl:
The government we elected is not obliged to break its own rules. Read carefully the article above. Read what the Contractor General has to say on the matter.
Quite frankly, I think this is working in the FAVOUR of the pilots, for I believe they are being SPARED the losses. I am not confident that they can turn Air Jamaica around.
I thank the government for not making decisons based on emotions and sentiments.

gary lee
2/18/2010

Most of the time I would agree with Mr.Christie, except this time. I would urge the govt. to abandon the sale of air j to Trinidad and turn it over to JALPA. It would be a wast of time to start a new tendering process, where there won't be any new takers and the objective is for the airline to remain in Jamaican hands.

Ramo Snave
2/18/2010

is it courruption to give the people a chance? would be be more benificary to have the revenues head out to another country?
is it not corruption to know that if you go to the imf for a loan, that they would want to dictate the spending of the money? is it not corruption tomake because of desperation you sacrifice the livelihood of your people? wasnt it corrupt when mr stewart abd his friends ring out the little life it had? would it really be corrupt to tell the bidders that your own country man would like a chance and u want to give them? would you rather to fly on your national airline when the bottom line is for another country? wow, it just business as usual!!!

Alicia Bogues
2/17/2010

The sale of Air Jamaica is going to have immense long term benefit for our country. The JLP has finally started to show some governance (took them long enough).
The government can no longer subsidize Air J's debts, not at the expense of the FEW tax payers. And nowhere does it state a nation requires a national carrier. I'm pretty sure the US Govt does NOT own American Airlines, Delata, etc. And there is a bidding process that has been openly advertised for the past year and a half or more. There are regulations regarding tendures.
If we would choose to read and learn more, and look at this with an open mind, we could see the long term benefits.

John Levy
2/17/2010

Can we get Granville Valentine,Bobby Pickersgill,Kavan Gayle,Damian Crawford and the JALPA crew on a charter flight to Caricom HQ in BARBADOS.This would give them a grand opprotunity to demonstrate against the foriegners from TRINIDAD and CARICOM (sic) Caribbean Airlines.I beg Edwin Carrington,Sir Shridath and PJ Patterson to assist them with the demonstration to make it a success.Prof. Rex Nettleford must be turning in his URN,i suspect he must have said "i am gone".

Francis Williams
2/17/2010

I am surprised the Contractor General did not step in until he was written to by lawyers of JALPA. In the past he has commented on numerous issues in the public domain without this being requested of him. Jamaicans need to understand the rudiments of proper tendering procedure, Government cannot just up and abandon negotiation based on a tender process out of sheer sentiments.
Can you imagine if it were some other assets being divested and suddenly we learnt that the entity was sold to someone or an entity that was not part of the formal bidding process, the howls of CORRUPTION would be deafening.
I commend the Government on its stance but i blame them still for not taking the opportunity to explain to the Jamaican public the rules that they are bound by. The media in Jamaica is also to take a significant portion of the blame as they have failed yet again to guide the Jamaican public many of whom seem not to understand the rules that must be observed in these matters.

Robert Miller
2/17/2010

Hi
Its a said shame that you are thinking like that Carl, government has nothing to do with this, for two years the government has been advertising the sale of Air Jamaica and the pilots did not send in their tender documents until the close off date, what should the government do drop everything and look at the pilots proposal that is corruption Paul something that we need to run from, what you need to do is stop playing dirty politics, read more and stand up for what is right, always remember the government for this move that they have made

carl salmon
2/17/2010

its sad...shame ...a disgrace to see that airline build by jamaicans for jamaicans and we as oridinary citizen of the country can not get a chance to buy it or buy into because of the the people we elected.....we are on our own that is must be something we must not forget

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Acquisition of Air J without tendering unlawful, says OCG