SeagaLEADER OF the Jamaica Labour Party (JLP) Edward Seaga yesterday alleged that a contractor connected to the governing People's National Party (PNP) had fraudulently collected more than $341 million under Government's low-income housing projects.
In a statement yesterday, Mr. Seaga called on the Director of Public Prosecutions (DPP), Kent Pantry, to act promptly on investigations done by the Fraud Squad into alleged fraud in Operation PRIDE/National Housing Develop-ment Corporation (NHDC) projects.
Mr. Seaga said the findings of the Fraud Squad report implicated Danwills Construction Ltd., owned by popular PNP supporter, Danhai Williams.
"The investigations now in the possession of the DPP show that in respect of three Operation PRIDE schemes, a total of some $341 million was paid to Danwills Construction Ltd. on fraudulent certificates submitted to the NHDC between August 2000 to July 2001," Mr. Seaga said.
The schemes he referred to are St. Benedict's, $161.2 million; Melbrook, $168.1 million; and Riverton, $11.7 million. All these schemes, the JLP leader said, were being carried out by Danwills Construction.
He added that a fourth project Morant Farms was not an approved project, even though $35 million was paid out to Danwills Construction. According to him, "$12 million of the $35 million was for materials delivered off site which could not be substantiated."
Up to press time last night, The Gleaner was unable to reach Mr. Williams. However, an official from the DPP's office confirmed last night that the file relating to Danwills Construction was among a number of files submitted to the office by the Fraud Squad last week Wednesday.
"The files are now being examined and as such we will not be able to comment in detail at this time," said the official who asked not to be named.
While not being able to say when the investigations would be completed, the official said the matter would receive top priority, given the national attention that it had attracted.
Controversy has followed the Operation PRIDE/NHDC schemes for more than a year, after allegations arose that the low-income housing project was being loosely managed, opening up the floodgate of corruption.
In fact, in February last year, Mr. Seaga reported to the DPP, allegations of fraud in a number of the housing projects.
Subsequently, Prime Minister P.J. Patterson set up a commission to probe the way the projects were being managed and determine whether corruption was involved.
The report of the commission revealed that there was gross mismanagement and corruption in the administration of the PRIDE projects. Based on their findings, the commissioners recommended that a forensic audit be carried out on certain projects. It also proposed that police investigations into allegations of fraud, with respect to the Morant and St. Benedict's projects, be continued.
