THE CONTROVERSY surrounding a house purchased for Governor of the Bank of Jamaica (BoJ), Derick Latibeaudiere, has given rise to questions about whether the Government should continue to provide official residences for certain public officials.
Finance and Planning Minister, Dr. Omar Davies said on Wednesday that the lack of a clear policy was the reason for the house sitting unoccupied while the Government paid a housing allowance to the Governor for living at his own residence.
"There are certain policy issues which arise, including whether the public sector should provide official residences for specified public officials, or whether such officials make their own living arrangement with appropriate compensation," Dr. Davies said, while closing the Budget Debate. "This case reflects a situation where the absence of a clear-cut policy led to an extended period of indecision."
Speaking in the Budget Debate last week, Opposition spokesman on Finance, Audley Shaw, described as "fiscal recklessness," the BoJ's spending of more than $56 million on the house that is still unoccupied after four years.
SECURITY COST
Dr. Davies said the money spent on the house was, in fact, $40 million and not $56 million. However, Mr. Shaw has stood by his figures, arguing that the additional $16 million was the estimated cost of providing security for the property over the period.
The Finance Minister said he has asked the auditing firm PriceWaterHouseCoopers to look at the figures so there can be no question about their validity. "As soon as the audit is completed I will provide the results to the house," Dr. Davies said.
In 1998, the BoJ purchased a house at 15 Bracknell Avenue, off Jacks Hill Road, St. Andrew, at a cost of $22 million for use as the official residence of the BoJ Governor. However, subsequent improvements and furnishing pushed expenditure up to $40 million.
EXAMPLE OF WASTE
In his Budget presentation, Mr. Shaw said the approach to the house was an example of "waste, extravagance and downright corruption in the administration." The original extensive refurbishing, he said, includes a new roof, new floors, an additional room, reconfigured master bedroom, new bathrooms, a new ultra modern state-of-the-art kitchen, standby generator, a gym, retaining walls, terracing, landscaping, new pool deck, imported pool deck tiles that repel heat, a gazebo and outdoor jacuzzi, a jacuzzi in the master bedroom and a separate shower with Swedish massage shower heads and marble tiles.
Dr. Davies said the BoJ has been trying to sell or lease the property but the offers it has received have been unattractive. He added that a sub-committee of three executive members of the BoJ board has been appointed to aggressively pursue the sale of the house at the best price.
