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PNP, PSOJ urge PM’s intervention in Montague’s used car initiative
Minister of National SecurityRobert Montague (right)presents one of the keys forthe pre-owned cars to be usedby police in Manchester and StElizabeth to commanding officerof Police Area Three, AssistantCommissioner Donovan Graham,in July this year.(Photo: Gregory Bennett)
News
November 30, 2017

PNP, PSOJ urge PM’s intervention in Montague’s used car initiative

THE Opposition has called on Prime Minister Andrew Holness to order an audit into the activities that have unfolded under the $426.9-million contract between the Ministry of National Security and O’Brien’s International Car Sales, for the provision of 200 used vehicles to the police.

Opposition Leader Dr Peter Phillips is also seeking the intervention of the Office of the Contractor General (OCG) and the auditor general in light of what he says appears to be clear breaches of the Government procurement guidelines, and “the repeated failure of the minister of national security to answer questions put to him in Parliament, and his gross dereliction of his duties as a minister”.

The People’s National Party’s call comes following revelation at Wednesday’s meeting of the Public Administration and Appropriations Committee (PAAC) that O’Brien’s has already been paid for half of the contract total but had only delivered 30 vehicles up to yesterday.

Another 66 vehicles, which Customs reportedly cleared only Wednesday, had been delayed because O’Brien’s wanted the security ministry to pay the $16 million in GCT and SCT on that shipment. The ministry had refused but asked the Ministry of Finance to waive the fees. The finance ministry rejected the request, but at the PAAC meeting it was disclosed that it has now advised the security ministry to pay the levies and recoup those costs after.

Permanent secretary in the Ministry of National Security Diane McIntosh maintained that O’Brien’s had not got favourable treatment. At the same time, she insisted that the ministry was not about to pay the taxes without first seeking advice from the attorney general’s chambers, notwithstanding the finance ministry’s directives.

The Opposition is now also questioning why O’Brien’s would be allowed a waiver on the 66 vehicles, given that the fees for the previous 30 units had not been waived.

Dr Phillips said National Security Minister Robert Montague should be held responsible, as the used car decision was his initiative.

The Private Sector Organisation of Jamaica (PSOJ) is also of the view that, given the magnitude of the developments, the prime minister should intervene.

PSOJ President Howard Mitchell, in a statement, argued that: “It is imperative that the prime minister immediately look into the circumstances that gave rise to this contract and how it has been handled at present. I am also of the view that this is, at minimum, gross incompetence, and there must be accountability within the ministry.”

The PSOJ said while it supports the intervention of the OCG, Holness should not await the outcome of that investigation to carry out his own, “and hold the appropriate persons accountable”.

The PSOJ said it finds it unacceptable that after there was so much concern raised when the vehicles were being ordered, that there are still issues surrounding delivery time and the suitability of the vehicles for the police.

“Further, we cannot accept that no proper due diligence seemed to have been done on the ability of the selected supplier to deliver the vehicles in a timely manner, and that they would have the requisite financing available and show evidence of their ability to supply the vehicles,” Mitchell said, adding that PSOJ was also very concerned with reports that despite an internal decision at the security ministry not to support a request for duty and tax waivers, that this decision was overruled, and the application made to the finance ministry.

— Alphea Saunders

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