Dionne Rose, Parliamentary Reporter

The more than US$41 million (J$2.6 billion) in overruns on the controversial Sandals Whitehouse hotel project were the result of poor management by the Urban Development Corporation (UDC) and the multiple roles of individuals involved, according to the long-awaited forensic audit report into the matter.

The report, commissioned by former Prime Minister P.J. Patterson last October, was tabled in Parliament by Prime Minister Portia Simpson Miller yesterday.

While confirming the assertions of Colin Campbell, the Minister of Information and Development, who said during a post-Cabinet press briefing on Monday that it had stated that the project delivered value for money, the report also pointed to the poor performance of the parties contracted to build the Westmoreland hotel.

"The UDC had to 'ensure compliance of designs to brief'. It is clear that this was not effectively done as the designs far exceeded the original brief and project budget," the report stated.

According to the report, the UDC and consultants Nevalco had a responsibility to report projected cost overruns to the board of joint venture partners Ackendown Newtown Development Company (ANDCO), advise on how to reduce these costs, and obtain the board's permission to proceed with the works.

Main downfall

"From all indications this was not done, and this was one of the main downfalls of the project," the report said.

Pointing to the multiplicity of individuals' roles, the report said there were too many persons acting as executives on more than one entity involved in the project. Among those individuals were ANDCO's chairman, Dr. Vin Lawrence, who was also executive chairman of the UDC and a director of consultants Jentech. Among other shared executives, a shareholder of joint venture partner Gorstew Limited was also a shareholder of Appliance Traders Limited, one of the companies awarded contracts on the project.

"These relationships were not good for the project, for as demonstrated above, there was too much power in the hands of some executives, leading to lack of objectivity and accountability," the document said.

Meanwhile, in a statement yesterday, the UDC said the forensic audit report now provides the Jamaican public with a "professional report" on the project, incorporating a detailed analysis of the technical, managerial and corporate issues supported by relevant documentation.