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PNP scandals send over $6b down the drain

By Vernon Daley, Staff Reporter

THE EMERGING controversy surrounding the National Housing Development Corporation (NHDC) is the latest in at least six major money scandals to hit the governing People's National Party since it took office 13 years ago.

Combined, these scandals have resulted in billions of tax dollars going down the drain.

However, the party is not overly perturbed by public rumblings over allegations of mismanagement and corruption in the Government and remains convinced that its bid for a fourth consecutive term in office remains viable.

"In terms of the electorate, the average person does not even know about these things," said party general-secretary, Maxine Henry-Wilson. She referred to a recent opinion poll which revealed that most Jamaicans were not aware of the NetServ scandal which broke late last year.

She said the party has not been affected on the ground by allegations of corruption and ineptitude because persons were aware that much of the public controversy was without substance and was linked to politicking.

The latest scandal to rock the Government involves NHDC and the Operation Pride housing projects that it administers. There are allegations of corruption and mismanagement at the NHDC, where there was a $35 million overpayment on a Operation Pride housing project.

Jamaica Labour Party spokesman on Finance, Audley Shaw, brought the issue to the fore last week while addressing a function on corruption. It also emerged that a study commissioned by the NHDC on 10 of the 100 Operation Pride projects, revealed that they are likely to overrun their original cost by $5.5 billion.

Prime Minister P.J. Patterson has since announced a four-man commission to review the operations of NHDC and Operation Pride and report to him in the next six weeks.

Mr. Shaw said yesterday that loose arrangements and lack of accountability in the Government was at the heart of the scandals which have followed the Government during its time in office.

"It has to do with the typical loose management that the Government has in place," Mr. Shaw said. He also noted that the scandals raise questions about the leadership of Prime Minister P.J. Patterson and his commitment to accountability in his Government.

Over the last 13 years, the Government has been plagued by revelations of corruption and mismanagement which have led to the loss of substantial sums.

Among the most publicised were the Shell waiver scandal; the zinc scandal; the public sector salaries scandal and more recently, the NetServ scandal.

The Shell waiver scandal, for example, which occurred under the leadership of former Prime Minister Michael Manley, resulted in a $29.5 million waiver on duties to the Shell Company in 1991. This led to the resignation of then Finance Minister P.J. Patterson from the Cabinet.

In the zinc scandal of 1989, some $500 million of hurricane relief zinc from overseas destined for poor people were diverted to political favourites and never reached the intended beneficiaries. There was also the furniture scandal which involved more than $10 million being spent to furnish, among other places, a town house for the then Minister of Foreign Affairs and Foreign Trade, Ben Clare.

Some $60 million also went down the drain in the public sector salaries scandal, where a number of top executives of Government agencies were paid various allowances above stated guidelines.

Last year there was the NetServ scandal, where the Government paid out more than $200 million to the failed IT company despite due diligence reports which warned against doing business with the firm.

Mrs. Henry-Wilson, however, argued that much of what has seeped out into the public domain, has resulted from the Government attempts at transparency.

PNP GOV'T MONEY SCANDALS

Shell Waiver (1991) $29.5 million

Zinc (1989) $500 million

Furniture (1991) $10.6 million

Public Sector

Salary (1998 $60 million

NetServ (2001) $220 million

Operation Pride/NHDC

(1997-present) $5.5 billion projected

TOTAL $6.320 billion

INCIDENTS INVOLVING AGENTS OF THE STATE:

Constant Spring lock-up deaths.....(1992)

Michael Gayle beathing.............(1999)

Prison Beatings....................(2000)

West Kingston Shootings.......(1997)

West Kingston Shootings.......(2001)

Braeton Seven Shooting.............(2001)

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