Tyrone Reid, Staff Reporter
THE NATIONAL Water Commission (NWC) says it is preparing to sue Magil Construction Jamaica Company Limited and its affiliate, Magil Palms Ltd., for alleging that, in 2004, one of its senior officers accepted a bribe to the tune of $100,000.
A senior NWC representative, who requested anonymity, said late yesterday that the company would be pursuing legal action against Joseph Gustadt, president and chief executive officer of both construction companies.
"It is being treated seriously and we will be pursuing the matter legally," the representative emphasised.
Additionally, the senior officer at the NWC, who Mr. Gustadt said attempted to extort an additional $500,000, which was not paid, told The Gleaner/Power 106 News Centre yesterday that he, too, had started legal action into the allegations.
However, an unflinching Mr. Gustadt dared the companies and individuals he criticised to sue him. "With pleasure, I challenge them to do that," he said while speaking from Israel.
In a detailed statement and background report released to the media, Mr. Gustadt criticised the business practices of representatives of the NWC, the National Environment and Planning Agency (NEPA), the St. Catherine Parish Council and "political parties". He alleged that the bribery demands and other corrupt practices cost his company in excess of $124 million.
The statement also pointed out that the Magil companies have ceased operations in Jamaica, claiming they were forced to leave the country because of the corrupt practices of Government officials.
"The company could no longer accept the losses that we were suffering as a result of the unjustified and malicious actions of bribe-seeking government officials," said Mr. Gustadt in his statement. "In my entire career, which spans over 30 years, four continents, and over US$1.5 billion of construction projects, I have never experienced the kind of corruption and self-defeating incompetence that I've seen here in Jamaica."
Zadie Neufville, acting manager of public education and corporate communications at NEPA, said her agency was looking into the complaints made by Magil. "I am therefore requesting some time in which to examine our files to prepare a detailed response," she said.
And in an interview with The Gleaner/Power 106 News Centre, Spanish Town's Mayor Andrew Wheatley rejected the allegations of corrupt practices among members of the St. Catherine Parish Council. Mayor Wheatley said the construction company had failed to fulfil its obligations to the Council regarding housing titles.
Magil Construction entered the local housing market in 1997 when it began the West Cumberland project in Portmore, St. Catherine. The company's latest project, Magil Palms, is also located in St. Catherine. Earlier this year residents of the housing development staged protests to vent their frustration at what they described as the company's failure to provide them with proper infrastructure.
Mr. Gutstadt said his company has not closed down completely but is now under the receivership of the Jamaica Mortgage Bank.
