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The Voice

Whitehouse hotel contract to be probed
published: Thursday | December 2, 2004

Omar Anderson, Gleaner Writer

CONTRACTOR GENERAL Derrick McKoy yesterday said his office was very interested in probing any "allegation of impropriety" that might have arisen in the awarding of a US$15 million ($900 million) contract to a Miami, Florida-based company in which the brother of a senior government minister is said to have a substantial investment.

The Gleaner understands that Charsal Marketing Incorporated has been contracted to supply furniture and fittings to Sandals in Whitehouse, Westmoreland, in which the Government is an equity partner. Audley Shaw, Opposition spokesman on finance, disclosed in Parliament on Tuesday that the U.S.-based firm was contracted to provide equipment for the hotel.

UNAVAILABLE FOR COMMENT

The owner of the firm was unavailable for comment when The Gleaner contacted his Miami office yesterday. A staff member there said he was in Jamaica and was preparing to return to Miami yesterday.

Speaking with The Gleaner, Mr. McKoy disagreed with the view of government members of the House of Representatives on Tuesday that there was no need to disclose details of the contract awards in the project because the venture was private.

Mr. McKoy explained that the office of the contractor general is empowered to investigate the awarding of a contract in a private company where the Government is a shareholder and can therefore influence the company's policies.

"The office of the contractor general can have an interest in the matter if the company (Sandals) is getting money from the Government," he said. On Tuesday, the House passed a resolution guaranteeing a US$25 million loan to help fund the hotel construction.

AWARDING CONTRACTS

During debate on the resolution, Audley Shaw, Opposition spokesman on finance, lambasted the Government for bypassing established channels for awarding contracts, and requested full disclosure on the matter.

According to Mr. McKoy, his office was "interested in the matter" and "we will certainly pursue it". "We have been monitoring this thing (construction) for some time," he told The Gleaner. "We have a very strong interest into any allegation of impropriety."

Up to press time last night, The Gleaner was awaiting a promised statement on the matter from Alston Stewart, project manager of the Whitehouse construction. Mr. Stewart is also chairman of the National Solid Water Management Authority (NSWMA).

Meanwhile, Leo Lambert, director of communications at Sandals, has made it clear that the hotel chain was not involved in the implementation of the hotel project.

"We are only equity partners with the National Investment Bank of Jamaica (NIBJ) and the Urban Development Corporation (UDC)," he explained.

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