Small contracts, big money

• Points to $88b awarded last year

Wednesday, August 25, 2010

JUST under 12,000 government contracts valued at more than $88 billion were last year awarded to contractors, most of whom were private business entities and whose certified beneficial owners were either unknown or not readily identifiable, says Contractor General Greg Christie.

Christie drew attention to the information as he pressed his call for an anti-corruption measure that would bring transparency to the Government's contracts award system by revealing the identity of persons who receive contracts.

The recommendation is one of several made by Christie in his report on his probe into the oil lifting contracts between the Petroleum Corporation of Jamaica and Dutch firm Trafigura Beheer.

The measure, he suggested, should be part of stringent and appropriate campaign financing laws to force the disclosure of the identity of political campaign donors and financiers.

"The proposed laws should also stipulate strict procedures regarding the receipt of campaign financing funds from any person and/or entity with whom the Government of Jamaica has had a contractual relationship," Christie said in his 111-page report.

Pointing to a recommendation he made in February this year, Christie reiterated that once this is done, the Office of the Contractor General and other State anti-corruption agencies will have the ability to cross-check these names against an electronic database of persons who are the recipients of government contracts.

According to Christie, the contracts which were awarded last year numbered more than 11,800 -- each exceeding $275,000 in individual value and totalling in excess of $88 billion in aggregated value.

Christie opened his probe into the Trafigura scandal on October 9, 2006 after it emerged that the then governing People's National Party received $31 million from Trafigura which, at the time, had a contract with Jamaica to lift oil on the international market.

Trafigura said the money was part of a commercial agreement, while the PNP maintained that it was a donation to the party.

The affair resulted in then information minister Colin Campbell resigning from the Cabinet. He also quit as general secretary of the PNP. The party later said the money was returned to Trafigura on orders from PNP president and then prime minister Portia Simpson Miller.

In his report, Christie accused Campbell of failing to provide "detailed and particularised answers to the specific written requisitions and questions... put to him" and recommended that the appropriate legal action, as deemed fit by the director of public prosecutions, be pursued against Campbell for obstructing the probe.

The contractor general also said he was unable to determine the purpose of the money transferred from Trafigura to an account operated by Campbell, and as such reiterated his call for the contracts award safeguard.

Said Christie: "By implementing this very important and ground-breaking anti-corruption measure, we will finally know the true identity of the persons, public officials, parliamentarians and politicians, and related parties, inclusive of their friends, relatives and associates, who have been receiving government contracts."

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COMMENTS (21)

Chuck Emanuel
8/26/2010

@Petros Haile, is that your solution to risk events and compliance issues which creates opportunities for fraud, corruption and criminality ?. I owe you no apology for calling a spade a spade. And yes, I am partisan because I do not support criminality and corruption. So, get over it !.

Petros Haile
8/25/2010

Chuck Emanuel,
How partisan you are. By now everyone should see the glaring colour from which you are made - how dishonest!

David Biles
8/25/2010

This is so funny to see the comments on this blog pointing the finger at Politicians and people in power. Folks, the 22,000 Government contracts were awarded to MANY ordinary Jamaicans who do not necessarily have political connections. There MANY Jamaicans of ALL walks of life that are corrupt just like any Politician and are adept at cheating the system. Stop pointing fingers at Politicians. JAMAICANS IN GENERAL ARE CORRUPT and are always looking to beat the SYSTEM!!

Otis James
8/25/2010

These things have been happening for amny years and no one stopped it, however it is not too late.

8/25/2010

These things has been happening for many years now.

Real Jamaican
8/25/2010

Jamaica is doomed under this present crop of leaders.

David Armstrong
8/25/2010

At this point I would have expected the PM, the Opposition Leader, and the other high ranking politicians to endorse the work Mr. Christie is doing. Maybe I am a little bit naive to expect them to do this when they are covered in brown stuff. Mr. Christie appears to be a one man institution trying to clean up the cess pool that these politicians have created.

C M
8/25/2010

I hear a lot of people yelling "CHANGE" doesn't mean anything what is needed is "ACTION" in my previous comment I mentioned having a payment processing center, this center should not be in Jamaica it needs to be far away from any political influence or even intimidation of its employees..I hope something as I suggested could be looked at and considered.

C M
8/25/2010

Within the Contractor General's Office s/b a Dept. that reviews all Cont. for compliance, after been signed off by all and payment to be made their s/b one payment processing center for every invoice that comes to the Govt. for payment..No more MP handling the $$$ for their districts, all of that s/b done a this one pay center, the ones that issues the contract should not be the ones that pays the invoice, everything s/b crossed checked and done electronically even travel expenses..everything.

Island Patriot
8/25/2010

We will see if the very same government that would be scrutinised will actually agree to this very necessary anti-corruption measure. I doubt it, so it is left up to us Jamaicans to do so.

norris Richards
8/25/2010

Bruce Golding, the bus driver, the JLP, Mama P, and the PNP are all against government corruption, are they really serious? The Contractor General had forward a number of files to the DPP and I guest to the Criminal Investigation Bureau for action, what has happen to them? How government contracts can be awarded to contractors and the name of the contractors not known. Now we know how, known Dons are awarded contracts. I though Mr. Golding was for transparent in government

zara thustra
8/25/2010

what a passa passa!

Chuck Emanuel
8/25/2010

What are all these political activists doing in the Office of the Prime Minister ?.
What is needed are persons of integrity who has the capacity and are committed to executing plans and recommendations and providing timely and actionable information on implementation.
What persons in their right mind would wish to give these people another 15 years of Governance, based on the performance of the first 3 years ?.
Where are the thinkers, or quick Learners ?.

mike daley
8/25/2010

Well can we see a correlation here to the lack of political will to address certain ills in our society? I think it is reasonable and fair to say that many in our gov't directly or indirectly benefit from the current situation. So why would they aggressively push for anti corruption laws or a meaningful whistle blower legislation if it will expose their malfeasance. The same tax payers who are being robbed blind, blindly support these politicians and are quick to make a partisan defence.

john blake
8/25/2010

Hope his probe will be retroactive

David Armstrong
8/25/2010

It is disturbing but not surprising to learn that the identity of entities awarded government contracts is not known. Is it possible that there was no bidding process in place and this bidding process was not made public? This is how the govt. is able to give people like Dudus contracts that helped established his wealth. This makes me sick to the stomach. This is another issue that deserves a Commission of Inquiry. Wake up Jamaicans it is full time we demand real accountability and change. This corruption that has cast a shadow over the political system affects both the JLP and the PNP. They both have maggots in their system.

christopher Isaacs
8/25/2010

I once was employed to a particular private entity that stipulated numerous requirement in order to access benefits that were duly negotiated and agreed for the workers, so much so that it became essential for the workers employ devious and dishonest means to access those benefits. That my friends is one of the results of too much bureaucracy. The OCG is bureaucratic in nature, a situation that bussinesses complain about frequently. We have so backed ourselves into a corner. Blocks Investments.

Nicolas Henry
8/25/2010

corruption, corruption, corruption. That's all I can say. The reason why corrupion is thriving, is simply because Many JA people have this "MAN AHFI EAT A FOOD" attitude. Just remember the food that man ago eat, is the food that your children & grandchildren will pay for, for decades to come. bottom line, change your ways of thinking & voting pls. don't vote for a party because your mother & father was this or that.

Hugh Maxwell
8/25/2010

Many thanks Greg Christie, you are my role model

royston smith
8/25/2010

Ok, Mr Golding, step up to the plate. You promised faithful that corruption must be stamped out of our country and here the Contractor General is placing before you an opportunity for you to redeem yourself from mess that 'Dudusgate' placed in. The public purse can not be a private affair. Every dollar that is spent should be itemised and the tax payers should know who the recepients are, how they qualified for such. Golding, listen, the Contractor General will give you five more years. Listen.

george watson
8/25/2010

I don't know how we would do it, but we as citizens should demand that the government accept these recommendations, and also that the CG be given teeth to prosecute these cases. If the government does not accept them, then we should conclude that they want to defraud us. Where did the $88B go? I think this is a move that the PNP could push for to show their sincerity of purpose.
I also saw where some of these breaches are subject to a $5,000 fine and 12 months in prison. WHAT RUBBISH!

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Small contracts, big money