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Another airlift deal angers Christie
Erica Virtue
Friday, June 11, 2010
THE government, through one of its agencies Jamaica Vacations Limited (JamVac), is embroiled in another controversial airlift deal which Contractor General Greg Christie said has breached State procurement guidelines and which was approved by Cabinet after the deal was operational.
<span style="font-weight: bold">The agreement is between the Ministry of Tourism and JamVac regarding the agency's agreements with US Airways, for the provision of airlift air services between Phoenix (Arizona) and Montego Bay, Jamaica</span>.
<span style="font-weight: bold">The deal, which is worth US$2.8 million, or nearly J$300 million, has left Christie fuming, following his recommendations that the matter should be tabled in the houses of Parliament, because of the seriousness of the matter.</span>
"The irregularities which have been identified in this matter are of a similar nature to those which were identified in the OCG's American Airlines Report of Investigation, which was tabled in the House of Representatives on March 3, 2010 and in the Senate on March 5, 2010," Christie said in a release yesterday.
That deal breached procurement guidelines and was approved by Cabinet on May 10, although it was already operational when tourism officials met with Christie in April.
Christie said that after investigating the matter, he wrote to Prime Minister Bruce Golding on April 26 and urged that because of its seriousness, his findings and recommendations should be tabled forthwith in Parliament. Nearly, six weeks later his findings had not been tabled.
Christie's letter to the prime minister was prompted by a call from Golding on April 21.
The contractor general yesterday cited a 40-page letter to Golding, dated April 26, in which he gave detailed accounts of a meeting after a team from the Ministry of Tourism, headed by Minister Edmund Bartlett, visited his office on April 22, seeking procedural guidance on the airlift agreement.
The contractor general's statement received a swift response from Opposition spokesman on tourism Dr Wykeham McNeill who expressed alarm at the findings contained in the report.
"When this occurred the first time with American Airlines, I warned the prime minister then that if the minister of tourism, Edmund Bartlett, was not held accountable or censured he would be doomed to repeat his mistakes. This has now happened," McNeill said.
He cited this second failure to adhere to procurement guidelines as a worrying trend.
"Once again, the Government has erred in its judgement. With American Airlines, they told us it probably would not cost Jamaica a single dollar. <span style="font-weight: bold">It actually cost us over J$250 million. This time they estimated that a four-month contract would cost under J$30 million. It ended up costing the taxpayers over J$160 million. This is over five times the estimated cost. This gross miscalculation has been magnified as it is outside of proper procurement procedures</span>," McNeill said.
He said that there was a "trend of mismanagement and deception", and warned that these contractual arrangements will have a long-lasting effect on the economy.
Erica Virtue
Friday, June 11, 2010
THE government, through one of its agencies Jamaica Vacations Limited (JamVac), is embroiled in another controversial airlift deal which Contractor General Greg Christie said has breached State procurement guidelines and which was approved by Cabinet after the deal was operational.
<span style="font-weight: bold">The agreement is between the Ministry of Tourism and JamVac regarding the agency's agreements with US Airways, for the provision of airlift air services between Phoenix (Arizona) and Montego Bay, Jamaica</span>.
<span style="font-weight: bold">The deal, which is worth US$2.8 million, or nearly J$300 million, has left Christie fuming, following his recommendations that the matter should be tabled in the houses of Parliament, because of the seriousness of the matter.</span>
"The irregularities which have been identified in this matter are of a similar nature to those which were identified in the OCG's American Airlines Report of Investigation, which was tabled in the House of Representatives on March 3, 2010 and in the Senate on March 5, 2010," Christie said in a release yesterday.
That deal breached procurement guidelines and was approved by Cabinet on May 10, although it was already operational when tourism officials met with Christie in April.
Christie said that after investigating the matter, he wrote to Prime Minister Bruce Golding on April 26 and urged that because of its seriousness, his findings and recommendations should be tabled forthwith in Parliament. Nearly, six weeks later his findings had not been tabled.
Christie's letter to the prime minister was prompted by a call from Golding on April 21.
The contractor general yesterday cited a 40-page letter to Golding, dated April 26, in which he gave detailed accounts of a meeting after a team from the Ministry of Tourism, headed by Minister Edmund Bartlett, visited his office on April 22, seeking procedural guidance on the airlift agreement.
The contractor general's statement received a swift response from Opposition spokesman on tourism Dr Wykeham McNeill who expressed alarm at the findings contained in the report.
"When this occurred the first time with American Airlines, I warned the prime minister then that if the minister of tourism, Edmund Bartlett, was not held accountable or censured he would be doomed to repeat his mistakes. This has now happened," McNeill said.
He cited this second failure to adhere to procurement guidelines as a worrying trend.
"Once again, the Government has erred in its judgement. With American Airlines, they told us it probably would not cost Jamaica a single dollar. <span style="font-weight: bold">It actually cost us over J$250 million. This time they estimated that a four-month contract would cost under J$30 million. It ended up costing the taxpayers over J$160 million. This is over five times the estimated cost. This gross miscalculation has been magnified as it is outside of proper procurement procedures</span>," McNeill said.
He said that there was a "trend of mismanagement and deception", and warned that these contractual arrangements will have a long-lasting effect on the economy.