(Jamaica Gleaner) Jamaican Prime Minister Andrew Holness has rebuffed allegations of wrongdoing in the awarding of millions of dollars in government contracts to the company of a business associate.
The Integrity Commis-sion has referred a report implicating Holness to the director of corruption prosecution after it concluded that he may have influenced the awarding of the contracts.
The recommendation was made in a 107-page report which contains details of an investigation into the award of government contracts to Westcon Construction Limited between 2006 and 2009.
The report said the company’s directors, Robert Garvin and Donovan Simpson, are known to Holness for more than 20 years.
Contracts were awarded through the Ministry of Education, Youth and Information (MOEYI), when Holness served as portfolio minister, the Social Development Com-mission (SDC), and the National Works Agency (NWA).
In a statement last evening, Holness rejected allegations of impropriety.
“I strongly reject any suggestion or insinuation of wrongdoing and I will do all in my power to ensure that the truth is known,” he declared, noting that he has referred the matter to his lawyers.
Full Statement
I have just completed my preliminary review of the integrity Commission Report.
Please note my initial comments:
1. The matter covered in the report of the OCG/ Integrity Commission (concerns) the award of contracts as far back as 2006-2009, over 14-17 years ago.
2. The failure of agencies to comply with various procurement rules cannot be attributed to me in any capacity and we note that the report does not make such a conclusion.
3. In my response to the Integrity Commission queries of these dated matters, I made it absolutely clear that at no time have I ever exercised influence on any process for the award of contracts.
4. I strongly disagree with the findings of the Integrity Commission regarding conflict of interest based on mere association.
5. It has been the longstanding practice that Members of Parliament are asked to recommend local contractors to undertake works in their constituencies as a practical matter. This practice was introduced during the 1990s and has continued across multiple administrations since. Furthermore, it is also the practice that Con-stituency Project Officers for the Constituency Deve-lopment Fund (CDF) are recommended by the Member of Parliament. It is not unusual that CDF Projects Officers are persons who are already working in the constituency organisation and are associated with the MP. I am certain that a review of local works and CDF Projects Officers will find that MP recommendations feature significantly in a vast number of them, and this has never been cited as exercising undue influence.
6. The Integrity Com-mission’s report also ignores the circumstances of an emergency, where in 2008, 15 years ago the ‘Christmas Work’ programme was late in starting and workers faced a high probability of not being paid. I was asked to recommend an entity to facilitate payment of the ‘Christmas Work Program-me’ before the close of business for the Christmas holidays. This was done in good faith. To see this being targeted and made into something it is not, is gravely disappointing.
7. I strongly disagree with some of the findings of the report and have referred it to my lawyers. I strongly reject any suggestion or insinuation of wrongdoing and I will do all in my power to ensure that the truth is known.
8. I, and the government I lead, remain strongly committed to tackling corruption in our country. The processes of doing so must, however, be practical, balanced, and fair to all concerned
End of statement
The report said 10 contracts were awarded to Westcon Construction through the MOEYI totalling $21.8 million. Five were reported to the Office of the Contractor General by way of the MOEYI’s quarterly contract award (QCA) reports for the period.
The report said that Garvin is “personally” known to Holness and had been employed both in his St Andrew West Central constituency and his personal business.
Garvin was also a director in the Positive Jamaica Foundation Limited, where Holness remains a director.
Garvin, Finance Minister Dr Nigel Clarke and Warren Vernon were noted as ceased directors as at November 1, 2016.
Both Holness and Garvin were also listed as directors of the company Sunshine Mobile Company, for which the core business activity was the provision of transportation consultancy.
Garvin was also listed as a ceased director as at November 1, 2016, in the company West Central Saint Andrew Trust, for which Holness was listed as a director.
Both Garvin and Juliet Holness, the member of parliament for St Andrew East Rural and the prime minister’s wife, were listed as directors of the company Omega Bridge Finance, for which the core business activity recorded was investments.
The prime minister ceased being a director in that company in September 2007 and is listed as a shareholder together with Garvin.
The report said Westcon Construction Limited was recommended in a letter which was dated December 20, 2007, and authored by Holness for the award of contract in the amount of $1,450,000 for works in St Andrew West Central relating to the 2007 Christ-mas Work Programme.
The NWA awarded 34 contracts to the company totalling $33.7 million. The report said 26 fell within the value threshold which required the NWA to submit particulars of the contracts to the then contractor general by way of its QCA reports. Only six were reported.
Two contracts were awarded through the SDC to Westcon totalling $370,000 and $1.4 million. Both were reported to the OCG but there was no evidence of the SDC utilising formal tender procedures for the procurement, the report said.
In relation to the contract that was awarded by the SDC to Westcon Construction, Holness wrote to the SDC, in a letter dated September 23, 2009, and advised that Garvin was employed as the project manager under the Constituency Development Fund in St Andrew West Central. Subsequent invoices were provided to the SDC requiring that payment be made to Garvin in care of Westcon Construction Limited.
“The matter concerning the potential conflict of interest which arose in relation to the recommendation which was made by the Most Hon Andrew Holness is being referred to the director of corruption prosecution for consideration with respect to breaches of the Contractor General Act, the Public Sector Procurement Regulations 2008, the Corruption (Prevention) Act and/or any other applicable law,” the report said.
