Mon | Dec 11, 2017

​Security Ministry moves to redeem performance bond on contract for JCF cars

Published:Monday | December 4, 2017 | 12:17 PMJohn Myers Jr.
O'Brien's International Car Sales & Rentals Ltd. – File Photo

The Ministry of National Security has moved to redeem the performance bond on the multimillion-dollar contract to supply used vehicles for the Jamaica Constabulary Force (JCF) in light of the failure by the supplier to deliver the units on time.

This is according to the head of procurement in the Security Ministry, Milton Morrison, who confirmed the development.

The ministry had awarded a contract valued at $427.9 million in January to O'Brien's International to supply 200 vehicles by June.

Speaking on Independent Talk this morning, Morrison said the Ministry took steps last Friday to redeem the $42.7 million bond which was paid by O'Brien's International as part of the requirements for obtaining the contract.

 

Head of the Procurement in the Ministry of National Security, Milton Morrison

Morrison says the Security Ministry should receive the money this week.

The move to draw down on the performance bond comes amid a widening controversy which has developed due to the failure of  O'Brien's International to deliver the 200 vehicles in keeping with the terms of the contract.

Only 30 vehicles have been delivered so far and another 66 vehicles are now stuck on the wharf because the Jamaica Customs Agency refused initially to wave Special Consumption Tax and General Consumption Tax charges on the vehicles.

Permanent Secretary in the National Security Ministry, Dianne McIntosh, told Parliament's Public Administration and Appropriations Committee last Wednesday that the Finance Ministry had since granted a moratorium on the payment of the taxes to the supplier and the vehicles were being cleared from the wharf.

However, the Opposition People's National Party (PNP) yesterday claimed that the vehicles had still not been cleared from the wharf.

The PNP called for Prime Minister Andrew Holness to instruct the security ministry to explain to the country why the vehicles were still on the wharf even after a moratorium on the tax payments were granted.