‘JACDEN hasn’t broken any law’
…but Golding says Gordon to step aside from PAC and shadow cabinet with immediate effect
OPPOSITION Leader Mark Golding says based on the facts made available to him, he has seen nothing to suggest that JACDEN Limited has broken any laws, but nevertheless, JACDEN boss Dennis Gordon will step aside from the Public Accounts Committee (PAC) and the Shadow Cabinet with immediate effect, pending the completion of ongoing investigations.
“This situation with JACDEN has emerged in the public domain within the context of the many serious findings of maladministration at the University Hospital of the West Indies (UHWI) in the Auditor General’s report,” Golding said in a statement Sunday.
“I believe it is essential that we consistently demonstrate our party’s commitment to high standards of probity in public affairs, and due respect for the spirit of the Leadership Code of Conduct that our Members of Parliament (MPs) and senators have all signed.”
The People’s National Party (PNP) president said Gordon has, as is appropriate, recused himself from the PAC hearings considering the matter, and the PNP’s integrity commission will look into the matter closely and provide its recommendations.
He said in coming to the decision, he is reiterating that, “I am not aware of anything which suggests Mr Gordon or JACDEN has breached any law”.
“Furthermore, JACDEN’s dialysis machines are now providing life-saving services to Jamaica’s renal patients at a lower cost than otherwise available in the marketplace,” Golding said.
“Nevertheless, it is the nature of public life that we must take a stance demonstrating adherence to rigorous standards of accountability, especially given that Jamaica is suffering from an environment where such standards are sadly lacking.”
Over the weekend, Gordon, the MP for St Andrew East Central, rejected calls for his resignation and scoffed at claims that he scammed the State out of millions of dollars when his company, JACDEN Limited, benefited from the UHWI’s tax-exempt status.
In his first full media interview since the matter was raised in a report from the Auditor General’s Department (AGD) in January, Gordon told the Jamaica Observer that the calls for his resignation were being done for political reasons as there was no finding of corruption or criminality by his company or himself.
According to the Auditor General’s report tabled in Parliament, the UHWI misused its tax-exempt status to import goods for four private companies, which it identified as companies 1, 2, 3, and 4, resulting in losses totalling $23.1 million.
“Customs records showed that items such as office furniture, laundry and medical equipment were declared as hospital imports, but inventory records confirmed these were not acquired by the hospital and were instead obtained by private entities,” the audit report stated.
“This misrepresentation breached the Customs Act, resulting in over $20 million in unpaid import duties,” the AGD said, pointing out that false declaration on Customs documents are subject to fines or prosecution.
The UHWI has since named the four companies as Supreme Laundry Services, Willman Sales, Scientific Medical Services, and JACDEN Limited.
Gordon admitted that the UHWI cleared a shipment of dialysis machines for his company, but was adamant that this was not an attempt to avoid the Customs duties, which the company has since paid.