Tue | Dec 12, 2017

Montague anticipating legal battle with car supplier

Published:Tuesday | December 5, 2017 | 6:21 PM
O'Brien's International Car Sales & Rentals Ltd

The government is gearing up for a possible legal battle with the supplier contracted to procure used motor vehicles for the Jamaica Constabulary Force.

In a statement in parliament Tuesday afternoon, National Security Minister Robert Montague said the ministry is awaiting legal advice as it seeks to resolve tax issues, among other things.

The parties are at odds over the payment of $16 million in General Consumption Tax and Special Consumption Tax to import 66 vehicles now on the wharf.

The contractor, O’Brien's International Car Sale and Rental, wants the ministry to pay the taxes but Montague says the ministry was of the view that the supplier should pay.

The national security minister said the ministry anticipated that the matter could end in the court and did everything to ensure it was in the right.

 

Minister of National Security Robert Montague

Montague said the priority is to now see how quickly the national security ministry can get the 66 vehicles off the wharf and deliver them to the police.

He notes that the ministry has called in the $42 million performance bond supplied by the contractor and it's enough to cover the costs to clear the vehicles.

 

Minister of National Security Robert Montague

He says the contract remains in place while the ministry awaits legal advice.