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BY PATRICK FOSTER Sunday Observer writer fosterp@jamaicaobserver.com  
November 17, 2007

Man in the news

WHEN Cliff Hughes introduced his pal, Phillip Paulwell to Michael Manley’s politics in the 1980s, it was for the two young men a time of great idealism.

Neither could imagine the dark turn that Paulwell’s career would eventually take, as he inched closer to realising his cherished ambition of becoming prime minister of Jamaica.

Last week, within a day of lambasting his political opponents for their “innuendos, half-truths and outright lies”, the former super minister handed in his resignation as People’s National Party (PNP) spokesman on energy and technology.

The Cuban light bulb scandal under which a gift of four million fluorescent light bulbs ran up an estimated bill of nearly $300 million, was the straw that broke the camel’s back.

A string of scandals that dogged Paulwell’s stint in government elicited his description as “accident-prone” from an unlikely source: the Rev Garnett Roper, who easily slips out of his pastoral garment into one as PNP ideologue.

In anticipation of a stellar political career, Phillip Feanny Paulwell vacated his position as head of the Fair Trading Commission (FTC) in the mid-1990s and ventured into active public politics. Becoming prime minister was one of the goals he enunciated in an early interview.

Before that, in 1991, the aspiring lawyer had the distinction of being the youngest person, at 29, to head a public institution when he was appointed managing director/trade administrator of the Trade Board.

When former Prime Minister P J Patterson made him a junior minister for energy, Paulwell quickly became the darling of the party. In any event, he appeared to have been favoured by Manley whom he succeeded in the East Kingston and Port Royal seat, securing himself a cosy ride to the House of Representatives.

The name Paulwell is somehow connected to almost every major controversy involving the former PNP regime – Intech Fund; Netserve; Cement Crisis; Solutrea; Cuban light Bulbs and Trafigura.

Paulwell’s political life has indeed been mired in controversy and the recent revelation by the Jamaica Labour Party (JLP) government that up to $281 million has been misappropriated in a dubious light bulb distribution project has become the latest event.

The 2006 donation of bulbs by the Cuban government was publicly embraced as energy saving and a prudent move.

Paulwell secured the gift first for his constituency but then persuaded the Cabinet it would be good as a national project. His ministry of industry, technology energy and commerce was responsible for the distribution of bulbs, and he gave direct administration of the project to his junior minister, Kern Spencer.

But in late October, new energy minister, Clive Mullings alleged in Parliament that over $117 million was misspent on the project.

Paulwell ignored the fingers being pointed at him, while Spencer took the heat. The former junior minister was eventually reduced to tears under Mullings’ piercing accusations and disclosure that the matter had been handed over to several state agencies for investigation.

After two weeks of evading the issue, Paulwell broke his silence to vehemently deny any wrongdoing. He insisted that he had kept silent, only to allow the president of the PNP, Portia Simpson Miller, and the party’s investigation committee to study the reports on the matter.

“I am confident that at the end of the various investigations and audit procedure, the JLP’s attack will be seen for what it is – another reckless and deliberate lie,” Paulwell declared.

Incidentally named after the successful racehorse trainer, Phillip Feanny Paulwell has exhibited uncanny resilience in the face of his alleged misdeeds. Despite the accusations over the years, he has never been found guilty of any act of corruption.

He has a knack for sticking to the winners in the PNP presidential elections.

Almost alone among PNP Parliamentarians, he supported Simpson Miller in her historic bid to become Jamaica’s first woman prime minister in 2006, and before that backed Patterson against her in 1992.

Paulwell has never lost an election in his east Kingston constituency.

Notwithstanding his controversial tenure there is also his crowning moment – the liberalisation of Jamaica’s telecoms industry.

He is credited with the present thriving and competitive telecommunications sector with the entrance of Digicel in 2000, Oceanic later and now Flow, joining Cable & Wireless.

The granting of new licences in the sector earned billions of dollars in early 2000 and led to the establishment of the Intech Fund to further develop the country’s IT sector.

Paulwell even received the 2000 Gleaner Honour Award for implementing “historic measures to break the 25-year telecommunications monopoly and introduce competition in the telecommunications sector”. But his successes would not last.

Using the Intech Fund, a number of companies, mostly overseas-based, were lent millions of dollars at pepper corn interest rates, with the understanding that they would establish call-centres in the island. Paulwell promised the nation 40,000 jobs in the sector as a result of the investment.

The ill-conceived policy, however, lacked due diligence and many of the companies enlisted were either unable to deliver or simply mendacious.

In the case of Netserv, this foreign-based company was granted a loan of $180 million, with a commitment to provide 3,000 jobs in the first year, boosted to 10,000 jobs within three years.

But after a few months, reports surfaced that the company was unable to honour its bills or meet its payroll, while the employment figure was nowhere near the 3,000 projected.

Paulwell’s apparent lack of judgement was papered over by Patterson who blamed it on, “youthful exhuberance”.

Among Paulwell’s harshest critics was D K Duncan, the former PNP general secretary who commented: “In any society that places a value on accountability, Minister Philip Paulwell would by now have done the honourable thing and tendered his resignation from the Cabinet over the fiasco of Netserv Global Communications, and what seems to be the unravelling of his information technology policy.”

Last year, when the faulty cement crisis was galloping out of hand, leaving the construction industry reeling and an approximate 30,000 workers idled, Prime Minister Simpson Miller was forced to take over the reins, leaving the impression that Paulwell was overwhelmed and inept.

At mid year this year, there was more bad news for Paulwell. He issued a cellular operating licence to a company named Solutrea, formerly Wiiscom Technologies Inc. The licence would become effective June 1 and the full payment of J$510 million would be made by the end of June.

But that deal too became embroiled in controversy when it was revealed in July that the sums for the licence were not paid at the due date and that attorney-at-law Minette Palmer, who represented Solutrea, was also an advisor to Paulwell.

It was also alleged that Palmer held shares in Solutrea Jamaica, the group’s subsidiary that would operate the local cellular network.

Solutrea, it was reported, was awarded the licence although only B$15 million was paid to government. Company founder Keith Walker eventually relinquished interest in the cellular project at the end of July.

When the light bulb issue emerged soon after, hardly anyone was surprised that Paulwell’s name was again being called.

But many were taken by surprise when he was named among four persons the Dutch police said they wanted to interview regarding bribery allegations, as the infamous Trafigura scandal resurfaced in November, hot on the heels of the bulb scandal.

The Dutch believe that Trafigura Beheer which traded oil for Jamaica on the international market, had bribed Jamaican public officials last year when the PNP was given $31 million.

They also believe that Colin Campbell, Bobby Pickersgill and Paulwell can help in their investigation, according to Prime Minister Bruce Golding in a statement in parliament.

For Paulwell, is it a case of ‘bad luck worse than obeah’? Or is it finally farewell to an ‘accident-prone’ politician?

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