JDIP Jumble
Published:Wednesday | November 16, 2011 | 12:00 AM
- Auditor General's special report reveals questions over handling of road programme
Erica Virtue, Senior Gleaner Writer
More than $100 million earmarked for road and infrastructure development under the Jamaica Development Infrastructure Programme (JDIP) was used to refurbish the corporate offices of the National Works Agency (NWA), according to a special audit of the JDIP done by Auditor General Pamela Monroe Ellis.
The finding is one of several key issues highlighted by the audit, which was tabled in the House of Representatives yesterday, and has exposed the untidy management of the programme.
Former Minister of Transport and Works Robert Pickersgill, and former finance minister Dr Omar Davies had called for a probe after the billion-dollar programme was omitted from the estimates of expenditure tabled in April this year. It was also missing from the first supplementary estimates, tabled in September.
Monroe Ellis found that the agency acted in contravention of "the provisions of the government of Jamaica procurement guidelines, "as the contract was awarded under the sole source method, and done without the approval of the National Contracts Commission (NCC)".
The sole source method is a non-competitive procurement process conducted after soliciting and negotiating with only one source, which limits full and open competition.
Using the method, the NWA awarded a contract to China Harbour Engineering Company (CHEC) for US$1.2 million, approximately J$102 million, to refurbish its corporate offices.
According to the auditor general, the NWA "did not determine if the option of sole source would earn or deny the entity any financial and qualitative gains, which could be garnered by using the competitive tender method".
The auditor general also found that the required contractors levy of approximately US$24,000, or JA$2.04 million was not deducted and remitted to Tax Administration of Jamaica in accordance with sections 3 and 4 of the Contractors Levy Act.
Monroe Ellis also found that the NWA's quality assurance monitoring in relation to JDIP projects failed to meet key performance indicators (KPIs).
According to the auditor general, the NWA failed to monitor 25 of the 77 active projects during the quarter, January to March 2011.
She said these were contrary to its KPI.
No evidence of reviews
"Further, NWA failed to provide the related quality control plan for the Christiana Development Road. In addition, there was no evidence that NWA conducted the required reviews and provided the necessary comments to the contractor for seven of the 11 quality control plans received," the audit found.
Monroe Ellis also noted with concern that, instead of utilising allocations to the Road Maintenance Fund (RMF) through the 2011-2012 Budget, the Government used JDIP funds to acquire lands for JDIP projects.
"We observed that the NWA in two letters dated May 3 and July 4, 2011, informed CHEC to arrange payments, as a matter of urgency, to four landowners for the sum of J$8.2 million. The aggregate appraised value for lands required for the road construction amounts to J$78.9 million," the audit found.
The audit also determined that the RMF was unable to identify works amounting to J$23.2 million, which the NWA certified as being satisfactorily completed.