LABOUR Minister Donald Buchanan will today take over the water and housing ministry, left vacant by Karl Blythe following a damning report by a four-member commission on the management of the National Housing Development Corporation and its Operation PRIDE projects.

Prime Minister P J Patterson, who made the announcement at a Jamaica House press conference yesterday, also disclosed that Dean Peart, the junior minister for transport and works, has been appointed to the Cabinet as the new minister of labour and social security.

Dr Fenton Ferguson, state minister for agriculture will replace Peart in the transport and works ministry, while Thorant Hardware, permanent secretary in the water and housing ministry under Blythe, goes on retirement at the end of this month.

Patterson said George Briggs, former permanent secretary in the Ministry of Health, would temporarily fill the vacancy for a permanent secretary, adding that he would soon name a replacement for Ferguson at the Ministry of Agriculture.

In addition to announcing the ministerial changes, the prime minister told reporters he would name a new board this week for the National Housing Development Corporation (NHDC), which has been at the centre of the controversy over the findings of overpayment and cost overruns relating to several PRIDE projects.

Members of the NHDC board resigned yesterday, following criticisms by the Erwin Angus-led commission, which Patterson appointed two months ago to probe allegations of overpayments and corruption in the PRIDE programme that was managed by the NHDC.

Last week the commission presented Patterson with its report, which portrayed Blythe as meddling in the operation of the NHDC in relation to Operation PRIDE among other administrative breaches.

Said the commission: “(We find) the actions of the minister of water and housing to be troubling, particularly in light of his full knowledge that many of these actions caused or contributed to the problems encountered in implementation.”

The report noted that Hardware, as permanent secretary, was “well informed” on the state of affairs of the PRIDE programme, while it noted that the NHDC board had a duty to ensure “prudent management” of the corporation.

But Patterson, declaring that Operation PRIDE would not be “abandoned” due to its “intrinsic merit”, said yesterday that he chose Buchanan to head the high priority water and housing ministry because he is “someone who does not have to go on a long learning curve”.

“We have a timetable in which to work. Our intention is that beneficiaries would be put in a position to occupy lots and houses in the shortest possible time,” said the prime minister.

Patterson, noting that the commission recommended clear separation of the roles of the minister and ministry of housing, the NHDC’s board and staff, said the administration would amend the Housing Act to effect this objective.

Said he: “Under the Housing Act, the minister is defined as a corporation sole. It is our belief that this could create possible conflicts from time to time in respect of policy directions which a minister must issue and the discharge of contractual responsibilities in respect of a corporation sole.

“We, therefore, intend to revisit that portion of the act which establishes the minister of housing as a corporation sole.”

At the same time, Patterson noted that the recommendations for administrative reforms at the NHDC were being addressed by the new managing director, Milverton Reynolds.

In addition, the prime minister pointed out that Cabinet had previously instructed that contracts under the PRIDE programme adhere to the procedures laid out by the National Contract Commission.

Patterson said his administration had accepted many of the commission’s recommendations, particularly those related to protecting government’s interest in disbursing loan funds and process of site selection, design and monitoring and the selection of beneficiaries for lots or houses.

And responding to queries about sanctioning public officials indicted in the report, Patterson said that the document would be passed to the Public Service Commission for the necessary action.