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BY ERICA VIRTUE Observer writer virtuee@jamaicaobserver.com  
June 10, 2009

Ja Cricket officials snub PAC meeting

THE expected showdown between officials of Jamaica Cricket 2007 and the Public Accounts Committee (PAC) of Parliament did not materialise Tuesday, as the principals of the entity snubbed the committee’s request for an appearance to explain the financial woes it has left behind.

The no-show of Jamaica Cricket 2007 officials has now left more questions than answers, as the Government is now facing a massive payout of almost J$455 million (US$5 million), following a claim served on the bankrupt entity.

This, even as the Ministry of Finance prepares to send a report to Cabinet to seek a write-off of J$300 million for Jamaica Cricket 2007.

The claim has sent the Government scampering for legal advice from the Attorney General to determine if taxpayers are indemnified from the payout, arising from a contract between Jamaica Cricket 2007 and the company contracted to put in seating at Sabina Park for the 2007 cricket world cup.

The matter, which is now before arbitration, could see taxpayers paying out the money if the arbitrator Maurice Stoppi rules that taxpayers are the guarantors.

Tuesday, PAC chairman Dr Omar Davies declared that he would not be making any statement outside of the meetings regarding the matter.

“I have been approached by news media, but I don’t think it’s appropriate as chairman of the PAC to comment on the matter outside of the sitting of the PAC. So in case there is any other member of the news media who wishes to ask me, that’s my position, that there will be no comment from me on the matter.,” chairman Omar Davies said yesterday.

Prime Minister Bruce Golding told Jamaica Labour Party supporters at a campaign meeting in North-east St Catherine Sunday night that the Government was staring up the wrong end of US$9 million or almost J$800 million deficit.

According to the prime minister, Jamaican taxpayers are apparently unwitting guarantors to the multi-million dollar contract between Jamaica Cricket 2007 and a local company whose principals are private citizens.

The company was contracted by Jamaica Cricket 2007 to erect seats at the Sabina Park cricket ground.

The US5-million claim is said to be outstanding up to December 2008. The contract valued US$24 million, US$21 million of which was paid. A balance of US$3.8 million plus interest has taken the sum to US$5million.

Attorney General Dorothy Lightbourne’s office has confirmed that it has been asked by the Government for legal advice. That department is now seeking advice from the Solicitor General.

It is understood that documents relating to the matter plus interest up to December 08, were sent to the Attorney General’s office in a carton box, along with a letter instructing the office to deal with the matter.

Government is also seeking advice to determine whether an appearance should be registered at arbitration. A source told the Observer that Government will be seeking a deferral of the payment, if found liable.

Last week’s meeting of the PAC was told that there was an outstanding sum of US$4. 215 million left by Jamaica Cricket 2007. Deputy financial secretary Rolda Gray was responding to the audit conducted by the Auditor General Pamela Munroe Ellis.

Gray said Jamaica Cricket 2007 Ltd was granted two loans in 2006, one for US$6 million and the other for US$2 million. Both should have been repaid on January 31, 2007, and July 31, 2007 respectively.

In February 2007, Jamaica Cricket 2007 paid US$3.785, the only installment paid on the loan to date, and the company is no longer operational, she said.

In a letter dated February 15, 2007, the company indicated that it would not be able to pay the outstanding balance of US$3 of the US$6 million owed.

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