Gov’t receives $42-m performance bond payment from insurer in used car deal
KINGSTON, Jamaica — The Ministry of National Security says it has received payment of the Performance Security Bond from the insurer on behalf of O’Briens International Car Sales and Rental Limited.
The performance bond is in the amount of $42,700,000, which represents 10 per cent of the contracted amount.
The $427-million car deal, which the Government signed with Obrien’s last January, has been mired in controversy since November when details of the souring of the contract came to public attention.
The Ministry of Finance on Wednesday revealed that Obrien’s Car Sales Limited was in November 2017 granted a second moratorium for taxes on the controversial 66 vehicles being imported for the police, even while the company still owed $7.9 million on the first 30 vehicles that were imported last June.
Meanwhile, the security ministry said it continues to protect the taxpayers of Jamaica.
Last year, the ministry provided 430 vehicles to the Jamaica Constabulary Force, increasing its mobility with both new and pre-owned vehicles.
In addition, 114 vehicles, which had been out of service from 2012, were repaired under a special project.
With the acquisition of the vehicles, none of the 190 stations across Jamaica should be without at least one police vehicle today, the ministry said, adding that it continues to do its part by purchasing vehicles for the police force in an effort to boost mobility and effective response.
However, the assignment of these vehicles is done by the police commissioner.