Robert Hart, Parliamentary Reporter
PATTERSON
PRIME MINISTER P.J. Patterson yesterday declared there was no corruption at the controversial Sandals Whitehouse Project in Westmoreland and that taxpayers would not be burdened with the immense cost overruns on the multimillion-dollar venture.
The Prime Minister, responding to questions tabled by Opposition Leader Bruce Golding last week, told Parliament that Government would not be writing off the project's massive US$33 million overruns, noting that the equity partners would have to find their own solution.
JOINT VENTURE RESPONSIBILITY
"We believe that in this case, the joint venture has acted responsibly," Mr. Patterson told the House of Representatives as both the Opposition Leader and the shadow spokesman on finance Audley Shaw posed further questions.
He added, however: "Any problems or concerns that have arisen as a result of the variations which have been ordered are matters which have to be addressed by the board of Ackendown Newtown, but it will not be at a cost to the taxpayer."
Ackendown Newtown is the joint venture company formed by Government entities, the Urban Development Corporation (UDC) and the National Investment Bank of Jamaica (NIBJ), and the Gordon 'Butch' Stewart-owned Gorstew Ltd., to run the construction of the hotel.
ADDITIONAL COSTS
The NIBJ and UDC share a 70 per cent stake in the hotel project that has moved from an initially estimated US$73 million cost to US$106 million. According to the Prime Minister, US$96 million has been spent on the project to date.
Mr. Patterson said the additional costs, to date, have been met by the shareholders' advances from the NIBJ and UDC, but that the bearing of the final costs will be a matter for the shareholders to agree on and settle.
In responding to Mr. Golding's queries, which were not due to be answered for another two weeks, the Prime Minister revealed that the contractors and suppliers on the multimillion-dollar hotel project were not subject to evaluation by the National Contracts Commission (NCC) when the project team and main contractor were selected.
The establishment of a sector committee and the register of approved public sector contractors were established between July and August 2001, the Prime Minister noted.
"By August 2001, the project team and main contractor had already been selected for over a year," Mr. Patterson said.
"Negotiations, preparations and commencement of work were already well advanced."
The Prime Minister also scoffed at suggestions that the list of sub-contractors was a 'who's who of the People's National Party'. Providing the list, he said if that were true, the Opposition could give up any hope of winning the next general election.
