Gareth Manning, Freelance Writer
Representatives of the National Works Agency (NWA) along with students of Gaynstead High School demonstrate the correct way to use a pedestrian crossing along Arthur Wint Drive last Wednesday. The occassion was the launch of a pedestrian crossing project sponsored by MoneyGram International, that involves the posting of 360 pedestrian crossing signs along the roadways of Jamaica in the next six to eight weeks. - IAN ALLEN/STAFF PHOTOGRAPHER
WHILE SET to leave behind a legacy of high investments and developmental projects, Prime Minister P.J. Patterson will also leave behind a legacy of scandals amounting to billions of taxpayers' dollars.
Over the last 14 years, Patterson's administration has been responsible for as many as five scandals resulting in the loss of over $10.29 billion. Adding the Shell Waiver Scandal in 1989, the figure would increase by $29.5 million.
Among the recent issues, are the Sandals Whitehouse and the Solid Waste scandals last year that together resulted in irregularities of $4 billion.
SOLID WASTE SCANDAL
The Solid Waste scandal emerged in July of last year after investigations into the awarding of contracts to some consultants and maintenance service providers showed that certain procedures pertaining to the awarding of contracts had not been followed by the Alston Stewart-led management team.
In a damning report to Parliament, Contractor-General Derrick McKoy noted that $1.4 billion was for the collection of sweeping contracts; $401 million for maintenance services; $35 million for motor vehicles and $25 million for consultancy services.
The eruption of the scandal led to the resignation of that board and the installation of a team led by former Town Clerk Errol Green.
The Whitehouse scandal followed afterwards as investigations revealed that cost overruns during the construction of the 400-room hotel amounted to US$45 million. The scandal erupted in calls for a forensic audit into the construction of the hotel. Government named president of the Incorporated Masterbuilders Association, Don Mullings, head of a team in October, but Mullings resigned a month later following accusations by the JLP that he was tied to the PNP. The JLP argued that Mr. Mullings received $2 billion in Government contracts through his company, M&M Jamaica Limited, and as such was not qualified to lead the team. Another team, to be led by Desmond Hayle, president of the Jamaica Institute of Architects, was subsequently named by the Prime Minister recently. Mr. Hayle was a member of the team that was to be led by Mr. Mullings.
The scandal also led to multi-billion-dollar lawsuits against the Government from two companies owned by hotel magnate Gordon 'Butch' Stewart. The companies filed suits in respect of damage to the Sandals International brand from Government's failure to deliver a fully functioning and completed property when the hotel opened in February last year.
Sandals' holding company, Gorstew, argued that the issue eroded confidence in the Sandals brand. The company, that also includes Sandals Whitehouse Management Limited, sought compensation to the tune of some US$150 million and special damages of US$29 million.
HIGH EXPECTATIONS
The 2001 Netserv scandal is also not to be forgotten. The scandal led to the loss of $220 million after investigations revealed that its operations were no longer viable. The company started operations in June 2001 with high expectations of creating some 3,000 jobs in the same year and 10,000 jobs by 2004. The company failed to get anywhere near those goals and went into receivership in December 2001 with only 209 employees.
The issue resulted in calls for the removal of Minister of Commerce Phillip Paulwell, but the Prime Minister downplayed criticism of the minister calling his actions "youthful exuberance".
The Operation Pride scandal followed some months later in 2002, racking up a massive $5.5 billion in misappropriated funds. Investigations showed the funds were due to cost overruns that surmounted the original cost in 10 of 100 Operation Pride Projects between 1997 and 2002. The person who figured prominently in the scandal was Dr. Karl Blythe who later resigned as minister.
PNP Government money scandals
Zinc (1989) $500 m
Shell waiver (1991) $29.5 m
Furniture (1991) $10.6 m
Operation Pride/NHDC (1997-2002) projected $5.5 b
Public sector salary (1998) $60 m
NetServ (2001) $220 m
NSWMA (2005) $2 b
Sandals Whitehouse (2005) $2 b
TOTAL $10.3201 b
