PSOJ not the watchdog of government contract awards

THE EDITOR, Sir:

In his article 'Economy or integrity: the OCG and JDIP', published on Sunday, July 10, Mr Robert Buddan made a number of factual errors and improper insinuations in trying to link the Private Sector Organisation of Jamaica (PSOJ) to the Government of Jamaica's contract-awards procedures under the Jamaica Development Infrastructure Programme (JDIP).

As the Office of the Contractor General (OCG) has noted, the PSOJ and the Jamaica Chamber of Commerce have supported the call by the director of the National Integrity Action Forum (NIAF) for the full particulars of the JDIP subcontractors and contracts to be made public by the OCG. Beyond the JDIP matter, the PSOJ has a long history of advocacy for free and fair competition in the Jamaican economy, as reflected most recently in our Economic Policy Framework.

We have also been leaders in developing and advocating for ethical business practices and adherence to global standards of corporate governance, not only in the private sector, but in the public and not-for-profit sectors. This is evidenced by the publication and dissemination of our Code on Corporate Governance, first published in 2006 and updated in 2009, along with a companion Handbook and Tool Kit on Good Governance.

Yet, despite our record, and approvingly quoting our support for transparency cited by the OCG, Mr Buddan has forged a number of tenuous links between the PSOJ and the GOJ contract procedures under JDIP.

In the first place, we make no apology for supporting the Planning Institute of Jamaica's Growth-Inducement Strategies and the expenditure of J$14.4 billion on infrastructure programmes implemented by the Government to stimulate economic growth.

To argue, as Mr Buddan does, that the PSOJ "should have insisted on checks and balances against secrecy in the award of those bonanza contracts" is not only engaging in post-hoc reasoning, but burdens the private sector with monitoring the details of government contract awards processes that are not rightly the responsibility of the private sector. The responsibility for monitoring the award of government contracts lies with the OCG, and the Government has a clear set of guidelines prescribed in law which the OCG studiously follows.

Proper procedure

Unfortunately, past and present administrations have deviated from these contract award procedures, and the PSOJ has always demanded that proper and fair procedures be observed and that our laws are enforced.

Regarding Mr Buddan's argument that the PSOJ's willingness and resolve to stand up for fair and competitive contract procedures is compromised because a past chairman of our Corporate Governance Committee - Mr Christopher Bovell - is also a long-standing treasurer of the Jamaica Labour Party, nothing could be further from the truth. On our several governing bodies - our council, executive committee and seven working committees, there are persons of various political persuasions, and we do not admit persons seeking membership in the PSOJ on the basis of their party political affiliation.

Finally, if Mr Buddan had been concerned with facts rather than making improper insinuations, he would have found that none of the 15 companies awarded contracts under the JDIP are members of the PSOJ. Given also that our Code on Corporate Governance is a guide that we encourage all businesses to follow, there are no realistic sanctions that we could apply to non-members who violate the code, save for denying them membership on the basis of their unethical business practices.

The PSOJ remains committed as always to fair, competitive and transparent procedures in the award of government contracts, the highest ethical standards in the governance and management of businesses operating in Jamaica and indeed in the governance of our country.

SANDRA A.C. GLASGOW

CEO, PSOJ