JUTC rejects claim it awarded $50m contract to company of board member's brother
The Jamaica Urban Transit Company (JUTC) is refuting claims by the Opposition that it has awarded a multi-million dollar contract to an entity connected to one of its board members.
Opposition spokesman on transport, Mikael Phillips, has claimed the JUTC’s board has awarded an over $50 million contract to a company in which the brother of a member of the board has an interest.
The contract is reportedly for the provision of property loss and recovery assessment services, accident investigation, damage assessment, disciplinary hearings for all workers and security at all depots and other JUTC properties.
Phillips says the entire board should resign over the matter.
He also wants the contractor general to launch a full-scale investigation into the award and for Transport Minister Mike Henry to say whether the contract was taken to the Cabinet.
But in a response a Wednesday afternoon, the JUTC said it does not have a contract with the company cited by the Opposition.
The JUTC admits that it had talks with the company in relation to the provision of services, but said the connected board member did not take part in these talks.
It says the board subsequently gave the JUTC management the approval to engage the company under a six-month pilot project, but later realised the contract would fall within the parameters which required competitive tender.
The JUTC says the process was halted and on October 21 and 24, it published invitations for tenders.
The JUTC says while it entered a temporary contract with the company for security services, that came to an end in September and there is currently no contract with the entity.