(Jamaica Observer) A forensic audit of the US$ 400-million Jamaica Development Infrastructure Programme (JDIP), which has come under scrutiny over allegations of gross mismanagement, is to begin in April this year.
Transport and Works Minister Dr Omar Davies, in a statement to Parliament Tuesday, said the request for proposals was sent to six local and international firms. He said the close-off date for the receipt of the proposals is February 29. A contract is expected to be signed on March 29, while the audit is expected to begin on April 2.
In January Davies, immediately after his People’s National Party took over the reins of government, announced that as at December last year the combination of funds actually disbursed, work orders certified for payment and the value of the works committed amounted to just over US$398 million.
“This means that if as minister I accepted the status quo, all but US$1.8 million of the US$400-million loan which was scheduled to be expended over a five-year period would have been totally completely committed before the end of the second year of the programme,” Dr Davies said then, adding “let me make it abundantly clear, I am speaking on behalf of the administration that we will not accept this situation.”
He said that expenditure to date means that the Ministry of Finance, which was required to find US$15 million as the Government’s counterpart funding of the US$100-million budgeted to be spent in fiscal year 2011/12, now has to find a further US$15 million to deal with the over-expenditure already made in this fiscal year.
In the meantime, the transport and works minister said a further assessment has revealed that there are some 33 JDIP projects identified by former minister under the JLP administration, Lester ‘Mike’ Henry, which cannot be implemented because “there are no funds available”.
He promised to make the list of projects available to Parliament.
In addition, he said he had been informed that the final expenditure on additional “rehabilitation works” and “routine maintenance” had not yet been settled as some of the projects listed on the issued work orders were not implemented.
“When those figures are finalised, Parliament will be informed,” Dr Davies said, noting that he was probing what was involved in the “routine maintenance programme” for which nearly US$21 million had been committed.
“I discovered that the activities, in so far as they actually occurred, took place in December 2011 (general election period) and mainly involved bushing. There is nothing inherently wrong with bushing but the commitment to spend $1.8 billion on bushing in one month is worthy of note. It certainly raises questions about the sincerity of those who now seek to criticise labour-intensive activities under the JEEP (Jamaica Emergency Employment Programme),” Dr Davies argued.
But Opposition spokesperson on transport and works, Karl Samuda challenged Davies to identify any “impropriety” or contractual deficiencies under the project and provide those details to Parliament.
Meantime, Henry — who lost that portfolio and responsibility for the programme before his party lost the December 29 general elections last year — also sought to defend his stewardship in the form of questions posed to Dr Davies. He went further to accuse Dr Davies of misleading the Parliament in all his pronouncements about the programme since taking charge.
Dr Davies replied, “I have no intention of conducting my own forensic audit …let the chips fall where they may.” He charged that the previous government displayed no fiscal prudence in the management of the programme and “gave out work willy-nilly”.
“They violated every single rule, the truth will come out. You will deal with the truth, you will hug up the truth,” Dr Davies said.
