(Jamaica Gleaner) Per-manent Secretary in the Ministry of Transport and Works, Dr Alwyn Hayles, was on Wednesday unable to explain why money from the Port Authority of Jamaica’s pension fund was used to purchase a ministerial residence for transport minister Mike Henry.
It was revealed during a press conference on Wednesday that the pension fund, which is mandated to invest money on behalf of staff members, had purchased the house, and the Port Authority would, in due course, acquire the property.
The Ministry of Transport and Works convened the press conference to counter reports that the Port Authority bought and refurbished the premises for J$60 million.
Hayles said just under J$50 million was being spent to acquire and rehabilitate the premises.
The transaction has raised eyebrows at a time when the Government is confronted by severe financial challenges.
However, Hayles claimed the house, which was valued between J$60 million and J$65 million, actually cost the Port Authority and its pension fund J$35 million.
‘Most inappropriate’
On Wednesday evening, a trustee of one of the country’s largest pension schemes told The Gleaner that, on the face of it, the use of the Port Authority fund’s monies appeared to be “most inappropriate”.
Hayles said J$12.32 million was spent repairing the house and another J$2.14 million was spent to construct a retaining gully wall, bringing the total to just under J$50 million.
“It is a matter to note that the combined expenditure of J$14.46 million for the refurbishing work, as well as the J$35-million purchase price fall below both valuations received for the property.”
In what was a clearly orchestrated move, Hayles was the man at centre stage, beside Henry, who refused to answer questions on the much-publicised issue.
The minister would only say that he would have his day in Parliament, after which his attorneys would make their move.
Hayles revealed that the property previously owned by Jamaica Omnibus Service, which was acquired by the Port Authority of Jamaica Pension Fund, would be sold to the Port Authority.
He was, however, unable to say just how the pension fund had got in the mix, and how the $49.5 million investment would guarantee the fund a fair return on equity.
“I am not able to give details … . You will have to speak to the Port Authority about that … . I know that between the pension fund and the Port Authority of Jamaica, a sensible decision will be made.”
An attorney representing the Port Authority, who was present at the meeting, remained silent.
Hayles was also unable to respond to queries about why the Port Authority was investing J$49 million in a house at a time when it was sending home workers.
In his prepared statement, Hayles sought to justify the Port Authority’s need to secure the accommodation for the minister.
The current minister’s house is out of town and it is in that light that accommodation was provided.
Hayles said the Port Authority was negotiating a draft lease with Henry for use of the premises.
“Rental rates were discussed with the National Land Agency, which normally leases government properties to senior government officials.”
