A-G says $92m worth of bulbs 'missing'
BY ALICIA DUNKLEY Observer staff reporter dunkleya@jamaicaobserver.com
Wednesday, January 16, 2008
THE Auditor General's Department has presented a damning assessment of
the Jamaica/Cuba Light Bulb Project which has widened the margin of
blame, taking some of the heat off former junior minister Kern Spencer.
According to Adrian Strachan, who completed the report just before his
retirement at the start of this month, about 176,380 of the four million
bulbs, costing approximately $92 million, could not be accounted for,
while there was an absence of an effective system of budgetary control
resulting in the making of payments and the incurring of unpaid
obligations of $185.3 million over the approved financial support of the
Petroleum Corporation of Jamaica.
Kern Spencer (left), the junior minister in the Ministry of Industry,
Technology, Energy and Commerce in the previous PNP Government, as well
as his senior minister, Phillip Paulwell (top right), follow Energy
Minister Clive Mullings' presentation in Parliament yesterday. At right
is PNP parliamentarian Ian Hayles. (Photos: Joseph Wellington)
Strachan said there was needless expenditure of $1.4 million in relation
to the sale of carbon credits. He also reported that the purchase of
computer equipment costing $850,500 was still to be accounted for, as
well as the apparent overpayment of $2.1 million for management fees and
an outstanding advance of $2.3 million.
Spencer, who was the junior minister with responsibility for the light
bulb project under Phillip Paulwell's Ministry of Industry, Technology,
Energy and Commerce in the previous People's National Party Government,
shouldered much of the blame for the discrepancies and alleged over
expenditure of approximately $114 million for the bulbs, which were
given as a gift from the Cuban Government.
The matter was first made public by the new energy minister, Clive
Mullings, in October last year.
Energy Minister Clive Mullings tabling the auditor-general's report on
the Cuban light bulb issue in the House of Representatives yesterday.
(Photo: Joseph Wellington)
In a report tabled in the House of Representatives yesterday, Strachan
called on the former energy ministry and the Petroleum Corporation of
Jamaica to provide explanations regarding several aspects of the project.
Strachan said it was clear "that the project under which four million
free light bulbs, courtesy of Cuba, were to be distributed to Jamaicans
was not planned and implemented in a satisfactory manner".
"The basic rudiments of good public sector project management were
absent," added Strachan. "There were wholesale breaches of the
Government's procurement and disbursement rules."
He added that weak or absent documentation undermined the accountability
process.
"In the circumstances, I am not convinced that this project was
implemented in an efficient and cost-effective manner," he said.
Among the "major inadequacies" identified by the auditor-general were
the non-presentation of any written agreement between the Jamaican and
Cuban governments on the numbers of bulbs supplied and the number of
Cuban volunteers, as well as whether expenses in relation to their stay
would be met by either government.
Spencer, immediately reacting to the report yesterday, said he felt
somewhat vindicated, saying he had been cleared of the blame placed on
him by the initial disclosures related to the issue. He thanked Prime
Minister Bruce Golding for commissioning the report and the
Auditor-General's Department for carrying out the
task assigned.
"This report is completely different from the initial report which gave
the impression that payments were made without any work being done or
without consideration. It shows that there were board approvals of the
expenditure," Spencer said.
According to the former junior minister, the "initial allegations were
that the ministry was not integrally involved in the process" but
Strachan's report showed that the ministry was not on the 'periphery' as
then implied and showed that the PCJ was involved in the process".
"I am prepared to give my account to Jamaica and the PCJ must give an
account as well, and the other officials should speak and explain that
there was no wrongdoing but that there were some challenges," Spencer
told the Observer.
He said he would be looking at the report in detail and would be
responding under Section 18 of the Standing Orders of the House.
Regarding the 'missing bulbs', Spencer said the Cubans would better be
able to say. "If bulbs are missing, ask the Cubans; they were the
custodians, we could not move the bulbs without asking them."
Spencer, during a November meeting of Parliament, wept openly after
Minister Mullings told the House that the Police Fraud Squad and the
auditor-general would be asked to investigate the project.
http://www.jamaicaobserver.com/news/html/20080115T210000-0500_131433_OBS_BULB_SAGA_DEEPENS_.asp
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