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Observer Reporter  
November 15, 2007

Kern says allegations in light bulb scandal baseless

KERN Spencer, the former junior minister at the centre of the controversial Cuban light bulb project, admitted yesterday that there may have been procedural breaches with the implementation of the project, but says allegations of dishonest or corrupt action on his part are baseless.

In a statement yesterday, Spencer, who has borne the brunt of public criticism since news broke some three weeks ago of gross overspending in the distribution of four million free incandescent bulbs from the Cuban government, said he resigned this week as the deputy opposition spokesman on energy because it was the right thing to do, and not an admission of guilt.

Phillip Paulwell, the former energy minister, had also resigned as the opposition spokesman on energy.

“I did so, not out of any acceptance of any allegations of dishonesty on my part, in relation to the probe into the distribution of the Cuban bulbs. I did so because in our parliamentary democracy, it is the right thing to do,” Spencer said yesterday.

At the same time, Spencer said “any breach of procurement procedures arose from the desire to move quickly

and efficiently”.

“In acting to ensure the timely implementation of the bulb replacement programme, the selection of the service providers had not one iota of dishonest intent,” he said.

“.The ministry developed a budget of US$3.1 million (more than J$200 million) to implement the programme and it was exceeded because some assumptions were not met.

“For example, financial input of all members of parliament, through the Social and Economic Support Programme (SESP), was not forthcoming; there was an increase in the personnel to 300 Cuban social workers and in excess of 900 Jamaican volunteers, and there were demurrage charges,” Spencer said.

Energy Minister Clive Mullings told Parliament recently that the previous government, through the Petroleum Corporation of Jamaica, had paid out $114.7 million for the distribution of the bulbs. Of this amount $85 million was paid out to Universal Management and Development Company Limited and $3 million to Caribbean Communications and Media Network Limited. Mullings said neither company was registered as contractor or supplier with the National Contracts Commission and there was no existing contract between the companies and the Petroleum Corporation of Jamaica or the energy ministry. Invoices not yet paid could, however, send the cost of the project to $280 million.

Mullings also told the House that the involvement of the two companies, which were incorporated around the same time the programme began in July of 2006, was even more suspect since they were both directed by a Rodney Chin, whom the minister alleged was an acquaintance of Spencer.

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