Director of investigation for the Integrity Commission Kevon Stephenson has concluded that there is sufficient material to consider bringing criminal charges against at least three companies and six individuals involved in a scheme that saw State agencies paying out more than $375 million for works done using fraudulent lab results.

In a special report tabled in Parliament on Tuesday, following a probe into allegations of fraudulent soil and material laboratory test result reports with respect to the award of certain Government contracts, Stephenson argued that there was enough evidence for prosecutors to decide if charges would be levelled against the individuals and entities.

“Based upon the compendium of facts and prima facie evidence of a conspiracy to defraud, it is recommended that a copy of this Special Report of Investigation be referred to the director of corruption prosecutions, Integrity Commission, or in the alternative to the director of public prosecutions for due consideration and/or any action as may be deemed appropriate, regarding the apparent breaches of the Forgery Act, the Perjury Act and the then applicable Contractor General Act,” said Stephenson.

The allegations stemmed from a letter to the then Office of the Contractor General (OCG) in January 2014 alleging that fraudulent soil and material laboratory test results were presented in relation to the award of certain Government contracts.

The letter, which was addressed to the contractor general by Jets Laboratories Limited, made allegations regarding “…recent fraudulent soils and materials laboratory test reports that have surfaced and are in circulation”.

The referenced letter was also addressed and sent to the attention of Scarlette Gillings, the then managing director of Jamaica Social Investment Fund (JSIF), and stated that in mid-2013 Jets was asked to verify certain data results submitted to the National Works Agency by a contractor/ developer.

“Upon examination and investigation, these were found to be fraudulent and fictitious and that our company had performed no such service for the alleged client/customer. Due to increased vigilance and special monitoring procedures, we have, within the past 10 days, again discovered that on one of your projects — JSIF Road Rehabilitation-Richmond Gap, St Thomas — fraudulent laboratory test reports have been prepared and submitted to your organisation,” the letter added.

At that time Jets said it had reported the matter to the police and had taken the appropriate action against those in its organisation who had been identified as contributing to these fraudulent reports.

“The Quality Assurance Certificate is forged, as it is sealed with a rubber stamp whilst our approval system, since September 2013, is by use of an embossed seal in order to prevent unauthorised copying. Accordingly, not only is public health and safety being jeopardised but in addition, we are certain that these fraudulent reports have been used in order to receive approvals for work done and to collect payments illegally from your organisation. In other words, fraud is being committed against both JSIF and the State,” Jets warned.

An investigation was then launched by the OCG, which was later subsumed by the Integrity Commission, to determine whether there was any prima facie evidence of fraud as it regarded the presentation of certain soil and material laboratory test results and the process which was utilised in the generation, circulation, and production of certain fraudulent soil and material laboratory test results.

The investigation also sought to determine the extent to which any fraudulent soil and material laboratory test results were utilised in the implementation of some Government contracts.

During his probe, Stephenson found that in many instances the reports were fraudulent and recommended that a further probe should be done by prosecutors to determine if some witnesses, whose names are being withheld by the Observer, breached the then applicable Contractor General Act.

He has also recommended that checks be made to see if, in one case, three of the people named and one construction company were guilty of conspiracy to defraud the Government.

The director of investigation further recommended that criminal investigations be initiated into the involvement and culpability of five of the suspects as it relates to the creation of false documents.

“Further that criminal investigations be initiated into the involvement and culpability of the directors of [three companies whose names are being withheld] as regards [to] aiding and abetting… in the creation of the said false documents,” said Stephenson.

He also recommended that public bodies, “treat with paramount importance and diligence, the implementation and execution of rehabilitation work programmes to ensure, inter alia, optimum quality standards, propriety, effective contract management, adherence to contract terms and conditions whilst ensuring value for money.

“This recommendation is premised on the attempts to circumvent the strictures of the quality standard provisions which are contained in terms and conditions of the contract agreements. The director of investigation recommends that implementing agencies pay keen attention to the monitoring and verification exercises as it concerns the engagement of contractors for the performance of road rehabilitation work programmes,” added Stephenson.

He charged State agencies to apply greater levels of scrutiny and diligence in the verification exercises which are geared toward determining the authenticity and credibility of tendered documents.

“This may serve to reduce the incidence of the tendering of forged, erroneous and/or incomplete documents being accepted as valid and authentic,” argued Stephenson.