The allocation of government contracts to Westcon Construction Ltd between 2006 and 2009 has been linked to Prime Minister Andrew Holness as a potential conflict of interest.
State organizations like the Social Development Commission and the National Works Agency (NWA) are also involved (SDC). The NWA has been charged with disrespect.
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From 2007 until 2009, Holness, a longtime representative for St. Andrew West Central in the House of Representatives, would have served as education minister in the Bruce Golding-led Jamaica Labour Party administration.
For potential violations of the Contractor General Act, the Public Sector Procurement Rules 2008, the Corruption (Prevention Act), and/or any other applicable laws, he has been submitted to the Director of Corruption Prosecution of the Integrity Commission for review.
The former Office of the Contractor General (OCG), which has since been absorbed by the Integrity Commission, launched the inquiry.
In its 107-page report, which was presented to the House on Tuesday, the Commission highlighted that the probe by its Director of Investigation focuses on claims that contracts were given to Weston Construction and that there is a, “connection and/or relationship between the proprietors of the named entity and … Andrew Holness, Prime Minister of Jamaica and then Minister of Education Youth and Information”.
The investigation sought to learn, among other things: (a) the kinds and specifics of the Government of Jamaica (GoJ) contract that Westcon Construction Limited received during the pertinent time; (b) the nature and scope of the relationship between Holness and the Westcon Construction directors/principals. (c) How much, if any, Holness was involved in the decision to grant Westcon Construction contracts from the GoJ. (d) If there were no irregularities or improper behavior, fairness, or transparency in the circumstances surrounding the awarding of contracts and/or the process(es) used by I the Ministry of Education, Youth, and Information (MOEYI), (ii) the NWA, (iii), and the SDC.
The following are some of the investigation’s main conclusions: -From February 14, 2007, to November 10, 2009, the MOEYI granted Westcon Construction a total of 10 contracts.
-Only five of the ten contracts were disclosed to the OCG via the MOEYI’s Quarterly Contract Award (QCA) Reports for the time period.
One case of the direct contracting procurement approach was used, while the MOEYI stated that the remaining nine occurrences used the criterion for the “Lowest Responsive Tender.”
The total amount of the 10 contracts that the MOEYI granted ranged in value from $1,413,439 to $3,360,650.00.
Regarding the NWA, the study also came to the following conclusions:
-From July 16, 2009, through June 6, 2016, the NWA granted Westcon Construction a total of 34 contracts.
– 26 of the 34 contracts that the NWA granted to Westcon Construction met the value requirement, necessitating the NWA’s submission of the contracts’ details to the then-Contractor General via its QCA Reports.
– By way of the NWA’s QCA Reports during the time period, just six of the 26 contracts were reported to the OCG.
– Four of the six times that the NWA reported the award of contracts through its QCA Reports during the cited period included sole-source procurement, while the other three involved limited-tender procurement.
– Everton Hunter, the NWA’s chief executive officer, informed the OCG that “…there are no records to indicate the method of procurement that was utilized for the award of the referenced contracts”. The procurement documents, according to Hunter, “do not show where any of the referenced awards listed went before the Committee for approval.”
In addition, the 34 contracts for a total of $33.78 million that the NWA granted to Westcon Construction Ltd ranged in value from $60,000 to a little under $12 million. Hunter reported that no records were discovered “…that outlined the selection process that was undertaken for the award of these contracts,” according to the Commission.
The inquiry revealed the following regarding the SDC:
-The SDC granted Westcon Construction a total of two contracts between December 20, 2007, and September 10, 2009.
– Both contracts were disclosed to the OCG through the SDC’s QCA application, which stated that the Limited Tender procurement technique was used for the award of a contract for $375,000.00 and the Single Source procurement approach for the award of a contract worth $1,450,000.00.
According to the Integrity Commission, Dr. Dwayne Vernon, the executive director of the SDC, later testified that “there is no evidence of the SDC utilizing formal tender procedures for the procurement of the works and services executed by Westcon Construction Limited”.
Dr. Vernon further informed the OCG that according to the records, “Westcon Construction was presented to the SDC by way of letter from the MP.”
In addition, Dr. Vernon informed the OCG that“…there is no evidence available to the SDC detailing how Westcon Construction was selected to provide services as the SDC did not procure such services. This was done at the level of the constituency”.
According to the Commission’s findings, Robert Garvin, Donavan Simpson, and Jerome Green were the company’s directors and shareholders when Westcon Construction Ltd was established by the Companies Office of Jamaica on October 11, 2004. Jerome Green served as the company’s secretary. The firm was registered with the National Contracts Commission (NCC) from April 11, 2006, to April 10, 2007, May 21, 2007, to May 20, 2008, and July 11, 2008, to July 10, 2009.
The inquiry goes into further depth on the type and degree of the connection between Holness and the directors and/or owners of Westcon Construction. According to the report, Holness has known Garvin and Simpson for more than 20 years.
The report noted, “Based upon the disclosure which was made by …Holness, Mr. Robert Garvin is personally known to him and had been employed both in the Prime Minister’s (St Andrew) West Central constituency and his personal business. It was also disclosed by the Prime Minister that Mr. Donovan Simpson is known to him ‘casually’ and was introduced to him by Mr. Garvin and that Mr. Simpson was engaged by him ‘privately’ to undertake land surveying work.”
The Director of Investigation (DI) of the Integrity Commission came to the following conclusion, among others: The failure of the then accounting and responsible officers of the then MOEYI to provide the necessary QCA Reports to the OCG, informing of the award of five contracts to Westcon Construction during the subject period, resulted in a violation of sections 29(a) and (b)(ii) of the Contractor General Act.
The DI also came to the conclusion that the then accounting and accountable officers of the NWA violated sections 29(a) and (b)(ii) of the Contractor General Act by failing to provide the necessary QCA Reports to the OCG, which would have disclosed the award of 20 contracts to Westcon Construction Limited during the relevant period and which met the reporting threshold for contracts with a value of at least $500,000, as required by those sections.
The DI additionally found that for 34 contracts that were given to Westcon Construction throughout the relevant time, the NWA had neglected to compile and/or keep paperwork.
“This failure, on the part of the NWA, amounts to a breach of section 2.10.1 and subsection 2150 of the then applicable GOJ Handbook of Public Sector Procurement Procedures, which stipulates the mandatory minimum period for the retention of public procurement records.
“This has had the effect of impairing the OCG’s efforts in determining (a) whether all the contracts were awarded transparently and on merit, and (b) the basis upon which certain contractors were selected to undertake a multiplicity of works and (c) whether value for money was obtained by the GOJ,” the report noted.
It continued: “Having regard to the foregoing, the DI has reasonable grounds to conclude that the NWA displayed scant regard for established standards of accountability and transparency stipulated by the GOJ Handbook of Public Sector Procurement Procedures.
“The DI concludes that the failure of the NWA to retain and furnish the procurement records relevant to the subject award of contracts is probative of its contempt for transparency and accountability and brings into question the Agency’s commitment to principles of good governance and prudent financial management”.
The DI came to the conclusion that there was a contradiction between (a) the claims made by the SDC in its QCA Reports that the Sole Source procurement process was used in the awarding of contracts to Westcon Construction and (b) the statement made by Dr. Dwayne Vernon on June 22, 2016, that “no formal procurement procedures were utilized” in the same contract awards.
“Having regard to the dichotomy which subsists, given the absence of documentation to the contrary and the sworn testimony of Dr. Dwayne Vernon, the DI accepts the testimony that “no formal procurement procedures were utilized” and therefore concludes that the SDC breached section 29 of the then applicable Contractor General Act, by its representation in its QCA Reports concerning the procurement methodology utilized in the award of contracts to the referenced contractor”.
The report states, “the Director of Investigation has found evidence which provides grounds for forming the view that the SDC acted upon the instructions which were conveyed by the Most Hon. Andrew Holness, by way of letters dated December 20, 2007, and September 23, 2009, made payments to Westcon Construction Limited in the amounts of $375,000.00 and $1,450,000.00, without the utilization of the mandatory formal GOJ procurement procedures. The payments were made by the SDC in respect of works which were stated to have been executed in the constituency of West Central St Andrew”.
According to the story, the prime minister acknowledged that he had known Garvin for around 20 years personally.
The report states,“Notwithstanding the fact that the SDC was the implementing agency entrusted with the authority to effect the administration of GOJ contracts and thereby enforce the stipulated formal procurement procedures, the Director of Investigation concludes that the Most Hon. Andrew Holness, by his admitted recommendation of Westcon Construction Limited, may have influenced the award of the contracts to the mentioned contractor,” the report said.
It was stated that the nature of the bond between Garvin and Holness further complicates the problem.
The report note, “In this regard, the Director of Investigation has reasonable grounds to believe that the apparent influence of the Most Hon. Andrew Holness, which was brought to bear upon the contracts which were awarded by the SDC to Westcon Construction Limited, prima facie, gave rise to a conflict of interest, on the part of the Most Hon. Andrew Holness”.
Based on the results of its investigation, the Commission forwarded a copy of its investigation report to the Director of Corruption Prosecution for any relevant steps the Director may deem necessary.
According to the statement, the Director of Corruption Prosecution is being asked to evaluate if any violations of the Contractor General Act, the Public Sector Procurement Rules 2008, the Corruption (Prevention Act), and/or any other applicable laws occurred in regard to the potential conflict of interest that developed in relation to the advice made by Holness.
The Director of Corruption Prosecution has also been referred to the NWA and the responsible SDC personnel.
