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Stabroek News

Government lurching from crises to scandals
published: Sunday | October 15, 2006


Prime Minister Portia Simpson Miller

Gareth Manning, Sunday Gleaner Reporter

It has only been six months in office for Jamaica's first female Prime Minister, but already the Portia Simpson Miller-led Cabinet has found itself knee-deep in numerous controversies and scandals.

Some of the present controversies are carry-overs from the previous P.J. Patterson administration, but others have resulted from what critics regard as the Government's own carelessness and lack of foresight. At least two scandals have resulted in the loss of nearly $30.02 billion, while others have resulted in mere embarrassment and lack of trust.

Curb the shortfall

The first of the controversies to arise was the cement fiasco in February, which put the construction sector in trouble. Some 500 tonnes of faulty cement were released on to the market, causing the stoppage of several building projects. Thirty thousand construction workers lost their jobs temporarily, when the situation became compounded by the Caribbean Cement Company Limited's (CCCL) failure to satisfy the demand for cement to the market. The construction sector lost millions of dollars also. A team was subsequently called in to probe the issue and waivers were temporarily introduced on some foreign cement. The country also received some assistance from Cuba to curb the shortfall. The entire fiasco soon led to the resignation of an employee at CCCL and another censure motion moved in Parliament against the Minister of Technology, Industry and Commerce, Phillip Paulwell. His first censure motion came in 2001, following the Netserv scandal.

In the midst of the cement fiasco, public sector employees also fumed. The two-year memorandum of understanding (MoU) was now over and many were dissatisfied with the terms of MoU2. While other public sector employees signed, underpaid nurses, doctors, police and teachers sought their own increases. The situation led to four months of embarrassing disputes that put the educational and health sectors and national security at stake. All four groups were left to settle for less than favourable increases.

And even before wages were settled, the Sandals Whitehouse scandal again erupted. The scandal, which was unveiled in July last year, came to light once again when the Contractor General, Greg Christie's, report was tabled in Parliament. The report heaped criticism on the Urban Development Corporation (UDC) for not following certain contract procurement guidelines and for its failure to report the massive cost overruns. Overruns surmounted US$41 million dollars or $J2.6 billion. A forensic report, produced by the Desmond Hayles team, further revealed that costs were in fact in the region of US$43 million. Amid the criticisms, chairman of the UDC, Dr. Vin Lawrence, not only resigned from his position as chairman, but from every position held in the public sector and from positions within the governing People's National Party.

Later in July, the Portmore toll issue reached a peak as residents lambasted the Government for instituting a $60 toll for cars using the Portmore leg of Highway 2000. The opening of the road was met with massive demonstrations by some residents who boycotted the route to demand the rate be lowered to $30. In recent times, the benefit of the one-mile high-speed stretch has been brought into question as backlogs are being created on roads immediately leaving the highway.

But even as all those scandals and controversies went down, a number of others arose. The National Solid Waste Management Authority was again being rocked by allegations of corruption, wanton spending and mismanagement. Only one year before, the agency was accused of contractual breaches that led to the loss of $2 billion. This time, the agency carelessly spent over $20 million in one year. Auditors were called in to check the agency's books. It is still not clear whether the executive director of the agency, Errol Greene, was sacked as a result of the recent findings.

And only a week and a half ago, the Government again found itself in boiling water when the Opposition revealed that the PNP had accepted $31 million from a company with whom it was negotiating the terms of a renewed contract. The company, Trafigura Beheer, which itself has been embroiled in a number of controversies overseas, initially disputed claims by the Government that the money was a donation and said it was in fact a commercial transaction. Trafigura later said the money was a political donation.

This scandal has so far led to the resignation of the Information and Development Minister, Senator Colin Campbell and there have been calls for the heads of Attorney General A.J. Nicholson and Minister of Transport, Robert Pickersgill. The situation has also resulted in other calls to make public the Government's deal with the Dutch commodities trading company.

Controversies and scandals

1.Cement fiasco - February.

2. Public Sector Wage. Dispute - spanning several months.

3.Sandals Whitehouse - June.

4.Portmore Toll Road Dispute - July.

5.NSWMA scandal - September.

6.Trafigura Beheer Scandal - October.

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