3| Montague in the middle
WITH a crime wave sweeping the nation, Minister of National Security Robert Montague faced the ire of the Jamaican public when a private company contracted to supply 200 pre-owned motor vehicles to the Jamaica Constabulary Force (JCF) failed to deliver the vehicles on time.
The company — O’Brien’s International Car Sales and Rentals Limited — was in January 2017 awarded a $426.9-million contract to supply the 200 pre-owned motor vehicles for the constabulary. However, only 30 of the vehicles were delivered in June after the 90-day delivery period had expired.
Parliament’s Public Administration and Appropriations Committee (PAAC) heard in November that a week after the expiration date asked the security ministry for a three-month extension to deliver the remaining units.
Prior to that the company had written to the security ministry asking that the General Consumption Tax and special consumption tax (SCT) being charged by Jamaica Customs on the vehicles be paid by the ministry as they were “unable to absorb the costs”.
Director of Procurement in the Minsitry of National Security Milton Morrison explained that O’Brien’s had said that it “inadvertently” left the tax costs out of its final price for the vehicles. “The Ministry of Finance is of the view that the Ministry of National Security ought to pay the GCT and SCT on the vehicles and that it is a requirement by law [and that] under the contract it would have been charged to the ministry on the invoices by the supplier. Unfortunately the supplier inadvertently left these taxes out of the final cost,” he said.
Morrison also further pointed out that O’Brien’s remained the lowest of the four bidders, even after adding the taxes to the final contract cost.
The Government has already paid O’Brien’s $213 million of the contract sum, and the value of the 30 vehicles that have arrived so far amount to $46 million.
Montague informed the House in December that if and when the 200 vehicles are brought in by O’Briens, the ministry is able to pay the full $34 million in taxes out of a $42 million performance bond posted by the contractor.
“So any lack of performance will not place the taxpayers at any risk. At no time will the people of Jamaica suffer any financial loss,” he stated.
“Let it be known that this minister will not breach any of the Government of Jamaica procurement guidelines,” he said.
Last year Jamaica recorded more than 1,612 murders, a spike of more than 19 per cent over the previous year.