Mike hits the road
Published:Wednesday | November 30, 2011 | 12:00 AM
- Henry resigns from transport ministry as pressure mounts over JDIP scandal
Edmond Campbell, Senior Staff Reporter
The final straw has broken the camel's back. Transport and Works Minister Mike Henry last night submitted his resignation to Prime Minister Andrew Holness as the flood of concerns over the management of projects by the National Works Agency (NWA) continued.
Henry's decision came on the heels of yesterday's revelation during Parliament's Public Accounts Committee that more than $60 million was spent on furniture for the NWA's offices, in addition to the $102 million refurbishing that sparked controversy after it was revealed in the auditor general's special report on the Jamaica Development Infrastructure Programme (JDIP).
"In light of the ongoing attacks on the JDIP, which continue despite the prime minister and I having acted to address the issue, as the line minister, I take full responsibility for the issues which have arisen, and today tendered my resignation as minister of transport and works with immediate effect," Henry said in a late night release.
Second casualty of JDIP scandal
He becomes the second casualty of what is a deepening JDIP scandal, after former NWA CEO Patrick Wong was forced to resign.
"There is nothing to hide about my stewardship of the JDIP, which is very important to the country, and I look forward to the conclusion of the ongoing investigations."
Henry added: "I thank all concerned for their support over the years I occupied the position as a member of the Cabinet, especially Central Clarendon which I represent in Parliament, and from where I will be focussing more of my energy at this time."
Contractor General Greg Christie announced yesterday that his office has commenced a formal enquiry into what appears to be serious irregularities in the procurement by the NWA of the office furniture, valued at $62 million, which was acquired through the Palisadoes Shoreline Rehabilitation Project.
During the PAC meeting, committee chair Dr Peter Phillips painted the NWA as a public body which departed from all proper canons of governance and was operating as a "rogue agency".
Members of the PAC yesterday raised an alarm after they were informed that the NWA renegotiated the original amount to be allocated to China Harbour Engineering Company (CHEC) for profits and overhead under the JDIP without the approval of Cabinet.
Dr Alwin Hales, permanent secretary in the Ministry of Transport and Works, confirmed yesterday that the NWA went back to the negotiating table with CHEC and increased the amount for profit and overheads by five per cent.
Hales said the first four work orders under the JDIP started at a 20 per cent margin for profit and overhead costs.
" ... Then there was a renegotiation and it was increased to 25 per cent," he told the committee.
Phillips contended that there was no parliamentary scrutiny of the loan arrangement. He questioned who was responsible for moving the "overheads and profit from 20 per cent to 25 per cent?"
Responding, Hales said: "You are quite right, Mr Chairman. The arrangements ought not to have allowed that to happen without it being recorded as some sort of a breach and that is where the oversight arrangements have to come into place."
The permanent secretary was making reference to plans to hire an independent consultant to oversee the multibillion-dollar Jamaica project.
"What is clear is that you had a runaway rogue agency operating on its own without reference to the ministry, without reference to the Parliament, without reference to anybody excepting perhaps the minister, and it was doing as it pleases with money belonging ultimately to the people of Jamaica," Phillips charged.
Hales had pointed out that Wong reported directly to Henry.
Not merited
Phillips' designation of the agency did not go down well with Deputy CEO Earl Patterson.
Patterson cautioned that the chairman's use of the phrase "rogue agency" was not merited. He argued that such a comment could put "the honourable men and women in the works agency under tremendous pressure".
Phillips said the use of the phrase was not intended to "impugn every single member of staff ... many of whom are loyal public servants".
However, Phillips said some persons had set out to avoid the rules and proper reporting procedures.
Phillips wanted to know whether the Jamaican taxpayer had any recourse.
Auditor General Pamela Monroe Ellis said where a loss has been incurred to Government as a result of negligence, a surcharge could be imposed, based on the Financial Administration and Audit Act.
She also pointed out that under the Public Management and Accountability Act, action could be taken against public officers through the Attorney General's Department.