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Answer, Mr Minister

Published:Sunday | May 4, 2014 | 12:00 AM

Ronald Mason, Contributor

NETSERV, Cuban light bulb, Energy World International (EWI), coal to natural gas - all common to Phillip Paulwell, in some shape or form. He was the minister in charge, as distinct from the state minister, regarding the Cuban light bulb matter.


He has had the benefit of youthful exuberance and all his discretions have been overridden by the public perception that he is a favourite of the PNP prime minister, past and present. One is reminded, however, that he who has himself as a client has a fool for a lawyer.

Good governance has a foundation that has persons who exercise authority for, and on behalf of, the Government being endowed with strong ethics. Where the actions lead to questions regarding not only competence, but the ethical underpinning, the prime minister has a duty to the country. The country and its citizens are paramount. Jamaica and all its citizens must be first and foremost in the decisions to appoint someone as a Cabinet minister. Regrettably, this most recent episode involving Minister Paulwell brings all this into sharp focus.

Let us ask the hard questions. Why did the Cabinet rubber-stamp Minister Paulwell's sole contact with EWI, in order to get it to bid? Was this not irregular? Was this contact the subject of rigorous review? Did this contact between EWI, Minister Paulwell and the Cabinet pass the smell test? Where does Minister Paulwell derive the authority to move the physical electricity plant from Old Harbour to Cane River? Is the Cane River proposed site in the constituency of Minister Paulwell or State Minister Damion Crawford? Does Minister Paulwell know and accept that the distance generated electricity has to travel results in some loss of usable energy?

Not in Jamaica's best interest

The people of Jamaica are being asked to suffer the adverse consequences of this fiasco - pay for a longer-than-necessary period of high energy costs and allow all the subsequent profits from the project to be repatriated out of Jamaica. The country has been an uncompetitive manufacturing economy. The price of energy is way out of line with our competitors. We pay 40 US cents per kWh, while Trinidad pays 6 US cents per kWh. The USA pays an average of 12 US cents per kWh. Who cares about the people and our best interest?

One is always reminded that the suss is not reliable, but what is being spread around in the streets of Jamaica cannot be repeated. The reality is that we have a time-tested response to these unflattering statements: 'If it no go so, it near go so.' You do not see smoke without fire.

The most recent statement offered by Minister Paulwell is that he will speak with the Office of the Contractor General with a view to getting a more favourable revised position. He then goes on to say, as reported, that the action is showing Jamaica in a negative light (pun intended). Minister, it is not the country that has this negative portrayal, but you, Minister. You, Minister, must step back, allow the checks and transparency to be applied. Rescue this programme. Get it right and clear and allow this project to generate the expected benefits for the country. We all want cheaper electricity, but it must be done in a transparent manner.

Schedule 1 of the licence, as amended and executed by Minister Paulwell and EWI, has significant differences from the corresponding Schedule 1 as submitted by the Office of Utilities Regulation (OUR).

It is necessary to note the following: The power purchase agreement (PPA) is between the Jamaica Public Service Co (JPS) and EWI. Of necessity, this diminishes the Government's role in the final term and conditions as the minister representing the Government is not a party to the PPA. Minister Paulwell, in Schedule 1, defers to the PPA in Clause (a), Clause (b), Clause (c), Clause (d), Clause (e), Clause (f), Clause (g), Clause (h), Clause (i) and Clause (j). In effect, every single clause has deferences and cedes the decision to an agreement to which the Government of Jamaica and, by extension, the people of Jamaica will only pay the related costs.

There is no reference in Minister Paulwell's Schedule to Audited Financial Statements for EWI. Nothing about equity and debt financing with a timeline, as stated in the OUR Schedule Clause 1.3. The minister's fuel-supply plan is deferred to the PPA, unlike Clause 1.4 requirement for a report to OUR within 30 days of the licence being granted. Can all this pass the smell test?

What is it about good governance, in the interest of the people, that this minister does not understand? The people have invested power in you with the highest level of expectation. We are being badly served. If one is to be accepting of the thought that he, the minister, was not aware of the implications of this, it brings into question his competency. If one is generous and allows the conclusion that this was a thought-out strategy, God help us. Governance, transparency, accountability for the people's best interest must be paramount. You, Minister Paulwell, are found wanting. No amount of trying to hide behind patriotism will suffice.

Ronald Mason is an immigration attorney, mediator, and talk-show host. Email feedback to columns@gleanerjm.com and nationsagenda@gmail.com.