National security ministry partially terminates contract with O'Brien's International
The Ministry of National Security has partially terminated the contract with O’Brien’s International Car Sales and Rentals for failing to fulfil the terms of the contract to supply the police with 200 vehicles.
This morning, Permanent Secretary, Dianne McIntosh, told Parliament’s Public Administration and Appropriation (PAAC) that the company was asked to voluntarily withdraw from the contract but she said it declined.
McIntosh says the ministry is awaiting repayment of funds.
She explained that the ministry has called in the $42 million performance bond as well as the $213 million advance payment bond, which was a deposit of half the full cost of the contract.
McIntosh says the ministry has written to the insurance company in possession of the bonds for it to pay over the money.
The permanent secretary further told the PAAC that while it has terminated the contract in part it has negotiated a different arrangement with O’Brien to get remaining cars.
O’Brien’s has provided 34 of the 96 vehicles.
Those 62 vehicles are sitting on the wharf.
In the contract, the company agreed to supply 2012 model cars but has now offered to provide the ministry with 2013, 2014 and 2015 model vehicles.
These new cars will cost the ministry $42 million more, putting the bill to $190 million.
Committee member Micheal Stewart said he was concerned that the ministry agreed to a variation.
PAAC Chairman, Dr Wykeham McNeill said he too was concerned about the additional cost.