(Jamaica Gleaner) 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.
