Edmond Campbell,
Senior News Coordinator
KARL SAMUDA vehemently claimed last night that Alston Stewart's
Nevalco Consultants ordered unauthorised payments of over US$40
million (J$2.5 billion)on the Sandals Whitehouse hotel construction.
The Opposition spokesman also called on Prime Minister Portia
Simpson Miller to move to recover the cash from the well-known
People's National Party (PNP) supporter.
Mr. Stewart could not be contacted for comment, but Mr. Samuda,
during an often fiery parliamentary debate, quoted liberally from
a report, showing that Nevalco went beyond the parameters of its
project management contract in ordering additional work on the
hotel. Mr. Samuda said the report was prepared by Port Authority
of Jamaica Chairman Noel Hylton.
"Despite requests, I have seen no documentation showing any agreed
variation order nor have I seen any report of authorisation with
respect of any such variation," Mr. Samuda quoted Mr. Hylton as
saying in the report.
HOUSE IN CHAOS
The House of Representatives descended into chaos with members
on both sides of the political divide engaged in a shouting match
during Mr. Samuda's disclosure. Acting Speaker of the House, O.T.
Williams, and Opposition members first traded heated exchanges
after he urged Mr. Samuda to use his time "productively" while
addressing the House. This drew a sharp response from Opposition
Leader Bruce Golding who cautioned the Speaker about his remark.
According to Mr. Samuda, Nevalco would have required such authorisation
from the Urban Development Corporation (UDC) on behalf of which
it oversaw the construction of the controversial hotel in Westmoreland.
In a quick response, Finance and Planning Minister Dr. Omar Davies
said that Cabinet had not been presented with the Hylton report.
"Mr. Samuda is making allegations which are not correct; no such
report was taken to Cabinet," he declared.
The 300-room-plus hotel has been at the centre of controversy
since it opened more than a year, costing more than a third over
its $70 million budget and disagreement over who caused it and
who should pay.
Gordon 'Butch' Stewart's holding company, Gorstew, a one-third
shareholder in the property, said it was not consulted about the
additional spending and has blamed the UDC and National Investment
Bank of Jamaica (NIBJ), the government agencies that are its partners
in the project.
In the face of the controversy, former Prime Minister P.J. Patterson
last August announced that Mr. Hytlon would lead a team to review
the overrun, but also ordered another report in January this year
when the Opposition remained dissatisfied with the breadth of
the Hylton team and the scope of its terms of reference.
However, during yesterday's Sectoral Debate in Parliament, Mr.
Samuda, the Opposition Foreign Affairs Spokesman, said that Mr.
Hylton submitted his report since last November, but that it had
been kept secret by the Government.
That report, he said, showed that Gorstew had requested variation
amounting to a little over US$1.28 million.
"This amount is to be paid by Gorstew, subject to any offsets
or other matters to be adjusted between the parties," Mr. Samuda
quoted the report as saying.
In the case of Nevalco, it had indemnified the UDC against cost
overruns on the project if the additional costs were not first
cleared with the agency. Nevalco, based on the Hylton report,
had apparently not done this, Mr. Samuda argued.
In that regard, Mr. Hylton had come to the conclusion that it
was the UDC and Gorstew which were responsible for the overruns,
while Gorstew was free of additional liability, except for its
specific request for variation.
"Our conclusion is that because the breach was committed by the
Mr. Alston Stewart-led Nevalco Consultants, the JLP is demanding
that the Government take appropriate steps, including if necessary,
court action to recover from the Alston Stewart-led Nevalco, these
overruns for which they are responsible and must be held responsible,"
Mr. Samuda said.
