PCJ order internal investigation into light bulb project

Petroleum Corporation of Jamaica (PCJ) has ordered an internal investigation into the controversial Cuban light bulb project.



This follows a damning report from the Auditor General highlighting several breaches of the government’s procurement rules under the programme.



Managing Director of the PCJ, Dr. Ruth Potopsingh, said the investigation would cover all the concerns raised by the Auditor General.



In 2006, the Energy Ministry transferred responsibility for the light bulb project to the PCJ, while assigning former State Minister, Kern Spencer to oversee the programme.



The PCJ was responsible for paying some of the cost incurred to provide transportation and accommodation for the Cuban volunteers, who came to Jamaica to distribute the bulbs.



The Corporation initially budgeted $30 million, but the amount was later increased to $90 million.



However, the project has accumulated to $276 million.



The Auditor General is urging the PCJ to recover more than $2 million from the project manager, Universal Management and Development Company.



In his report to Parliament, the Auditor General said after the advance payment was disbursed, another

5.3 million was paid for project management fee between October 2006 and June 2007.



However, only $350,000 was to be paid each month, which means the Universal Management and Development Company, were overpaid by $2.2 million.



The Auditor General said the PCJ was not able to provide a satisfactory explanation for the overpayment.



The report also noted that approximately $44.1 million was paid to cover the cost of meals for social and volunteer Cuban workers.



The volunteers were provided with four to five meals a day, including breakfast, brunch, lunch, dinner and supper.



The Auditor General also said the PCJ must explain why payment was made for more than three meals a day with a view to making the necessary recovery.