THE POLICE have concluded that Danwill Construction Limited obtained more than $341 million based on false payment certificates submitted to the National Housing Development Corporation (NHDC)/ Operation PRIDE.
Payment made was in excess of the value of the contract and it is still unclear who is responsible for the payouts.
The report of police investigations into the NHDC/Operation PRIDE scandal, which was circulated in the media last week, states that Danwill Construction accepted a total of $341,149, 289.08 in overpayment, and questioned the responsibility of several NHDC personnel who were involved in the authorization of payment for work done. Danwill Construction Limited is owned by PNP activist, Danhai Williams, who is said to be out of the island and could not be reached for comments.
It is also argued in the report that the former managing director of the Technical Services Department (TSD) of the NHDC, Warren Sibbles, along with his then project manager would be among the chief persons to be held responsible for the overpayment since approval/recommendation for payment was made by the TSD at the time.
However,when The Sunday Gleaner attempted to contact Mr. Sibbles, official sources involved with the investigation said, "Mr. Sibbles cannot handle any media pressure right now. He is at home, not in a good state...not working. He is not the big fish here. Where did the money go?"
In the report which is now before the Director of Public Prosecutions (DPP), investigators argue that during the period August 2000 to July 2001 when the payments to Danwill Construction took place: "Mr. Warren Sibbles had responsibility for ensuring that payments were commensurate with the value of actual work done on site and to monitor payments against contract sums to minimize cost overruns."
It further goes on to say that "the director and project manager (of the TSD) authenticated certificates presented in excess of contract values. It is either that these men were grossly incompetent or part of a conspiracy with other persons."
Investigators calculated payments made to Danwill Construction Limited based on St. Benedict's, Melbrook and Riverton payments certificates submitted to the NHDC at $341,149,289.08.
They explained that the actual sums paid out in respect of each contract exceeded the value of the contracts. "The St. Benedict's contract was signed for $124,238,867 yet $206,196,777 was paid out by NHDC to the contractor. The Melbrook contract was signed for $155,053,931 yet $210,692,845.34 was paid out by NHDC to the contractor."
It was pointed out in the report that during September 2001, the projects committee of the NHDC Board became concerned about the value of work paid for, compared to actual work done during the PRIDE projects. The concern was raised that the reported percentage completion on a number of projects was significantly lower than the percentage of contract sum paid. The committee was "not satisfied with explanations tendered by the then director of TSD, Warren Sibbles, with respect to what the members saw as significant cost overrun."
It was reported last February that former NHDC managing director and attorney-at-law, Christopher Honeywell, resigned that post after former Water and Housing Minister Dr. Karl Blythe, (who was recently exonerated from any wrongdoing in the PRIDE scandal), insisted that Warren Sibbles, the NHDC's chief technical director, be reinstated after Mr. Honeywell had fired him.
Dr. Blythe, however, stated that Mr. Honeywell did not dismiss Mr. Sibbles and Donovan Hill, project manager, and it was in fact the NHDC board which had fired them. Dr. Blythe argued that he only suggested to the board that both men should be granted a hearing in the interest of natural justice.
After the financial irregularities in the Operation PRIDE project became an issue Prime Minister Patterson set up an investigative Commission to probe the operations of the NHDC. A damning report under the Chairmanship of Mr. Erwin Angus, a respected former Permanent Secretary, was submitted condemning the procedures of NHDC and pin-pointing the dereliction of duty of Dr. Blythe which opened the door to financial irregularities and possible fraud. The minister resigned.
Subsequent to that Prime Minister Patterson gave support to an investigation of the Angus Report by a former Solicitor-General. This investigation condemned the Angus report which had condemned the minister, by charging that the Angus Report was defective. The presentation of the report by the former Solicitor-General cast doubt on the finding of the Angus Report and Minister Blythe was exonerated.
