Paulwell
AMID MOUNTING pressure for investigation of the government's dealings with Netserv Global Communications Ltd, the overseas information technology firm, Phillip Paulwell, Minister of Industry, Commerce and Technology, called yesterday for the Auditor General to audit Intech Fund immediately.
A terse statement from Mr. Paulwell's office noted that the request was made "against the fact that the National Investment Bank of Jamaica (NIBJ) has placed Netserv, a recipient under the Intech Fund, in receivership."
The NIBJ placed the company in receivership on Tuesday saying an investigation had determined that its operations were no longer viable.
The company began operations in June with high expectations after being granted a $180-million loan from a government fund with the understanding that it would create 3,000 jobs in the first year and 10,000 within three years. It failed to get anywhere near those goals. It employed 209 persons when it was placed in receivership.
The controversy mounted yesterday with the circulation of several documents suggesting that the government had had sufficient warning about doing business with Netserv before it committed public funds to the company.
Yesterday, Edward Seaga, the JLP leader, called for the removal from office of Minister Paulwell and Rex James, managing director of the NIBJ, citing what he called the "scandalous distribution" of $180 million to Netserv.
"The handling of the Information Technology portfolio by Minister Phillip Paulwell has created scandal after scandal which is severely damaging the future prospects of development in this vital sector (IT)," Mr. Seaga said. "He should be removed immediately by resignation or transfer."
He said he was instructing, Audley Shaw, Jamaica Labour Party spokesman on finance, to call on the Auditor General for a special independent investigation.
According to Mr. Seaga, the funding of the government's Information Technology Revolving Administrative Loan (Intech) Fund project by the NIBJ, leaves little doubt that Mr. James, should also be dismissed by the Prime Minister who is responsible for the NIBJ.
(The Intech loan facility is available to businesses in the information technology sector for financing fixed assets and some working capital.)
Mr. Seaga who noted that distribution of the $180 million by the NIBJ did not observe "prudent procedures," said it was as a result of the NIBJ's "reckless investment which allowed Netserv to draw down $180 million of Government funds."
He recommended that distribution of Intech funds be halted until investigations are concluded. The probe would include $67 million due to be distributed today to another firm which owes US$100,000 rent, he said.
Mr. Paulwell gave the commitment to probe charges of questionable conduct by Netserv Global Communications (Jamaica) following charges by Mr. Shaw last month, that Netserv Global Communications had a reputation of jumping from one jurisdiction to the next without delivering promised benefits to its host country.
"It comes in, sets up something, gets some money and moves out," Mr. Shaw had said.
Netserv has headquarters in Trinidad and in Florida.
