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Stabroek News

Mullings resigns from Sandals Whitehouse probe in Jamaica
published: Thursday | November 24, 2005

Omar Anderson, Gleaner Writer


MULLINGS

DONALD MULLINGS, president of the Incorporated Masterbuilders' Association of Jamaica (IMAJ), has resigned as head of a recently-commissioned six-member forensic audit team set up to probe Sandals Whitehouse in Westmoreland, Jamaica.

His resignation followed objections raised by the Opposition Jamaica Labour Party (JLP) which claimed that his company, M&M, had recently received large government contracts, including some from the Urban Development Corporation (UDC) which has interest in Sandals Whitehouse.

Two weeks ago, Prime Minister P.J. Patterson announced Mr. Mullings' appointment, following a parliamentary motion.

But a statement yesterday from the IMAJ said the civil engineer resigned because his integrity was being questioned.

"When scurrilous statements about his character began to be made, and questions raised in the media about his independence and competence to do the job, it became clear that no matter how scrupulously honest and detailed the team was, the report would be tainted in the eyes of some interested parties," the statement said.

ATTACK ON HIS INTEGRITY

Mr. Mullings said also that he was unwilling to expose himself and team members to "attacks on their professional integrity and hard-earned reputations, by misinformed or mischievous persons."

Two weeks ago, Karl Samuda, the JLP's Spokesman on Foreign Affairs, objected to Mr. Mullings' chairing of the audit into the US$41 million over-expenditure into the Sandals Whitehouse project.

He claimed that M&M had received more than J$2 billion in government contracts since 2001, including one worth $500 million earlier this year.

But Mr. Mullings promised yesterday that he would respond to those accusations in a separate statement.

Speaking at a contract signing in Kingston yesterday, Water and Housing Minister Donald Buchanan lashed out against Mr. Samuda for denigrating Mr. Mullings who, he said, received all his contracts through the required tendering process.

"He has a very efficient company and he's one of the finest in the construction business," Mr. Buchanan told The Gleaner yesterday. "So I think Mr. Samuda's attack was a disgrace, it was unwarranted and 'evilous', solely to gain political points."

The naming of Mr. Mullings follows the filing of a suit two weeks ago by two companies owned by hotel magnate Gordon 'Butch' Stewart.

The two companies filing the suit are Gorstew and Sandals. They are suing UDC, National Investment Bank of Jamaica (NIBJ), and Ackendown Newtown Development Company Limited.

Ackendown, in which the UDC is a major stakeholder, is the developer and owner of the controversial Sandals Whitehouse hotel.

Sandals is claiming special damages of US$29 million. The amount being sought for general brand damage is unspecified, but claims could eventually amount to US$150 million, based on legal papers Mr. Stewart's lawyers filed in the Supreme Court two weeks ago.

Gorstew and Sandals contend that they made no material design changes contributing to the significant cost overruns on the Sandals Whitehouse project. Sandals Whitehouse was slated to be completed for US$70 million, but will instead cost US$111 million.

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