The
Netserv nightmare- D.K. Duncan POWERLESSNESS
an awful feeling that pervades the psyche of most Jamaicans as we
listen to our radios, read the newspapers and watch local television. This
feeling became more pervasive as we tried to follow and unravel elements
of the Netserv Saga.
Each Jamaican seems to have felt a personal loss of that $180 million
dollars. Simultaneous reports of FINSAC's liability of $120 billion, the
$4 billion required to be "pumped into the ailing Sugar Company of
Jamaica" as well as the $1 billion dollar shortfall in tax revenue,
did not evoke the same response as the Netserv millions.
A significant factor contributing to this feeling of powerlessness is
the total absence of transparency and accountability. This is exacerbated
by the futility of expecting appropriate sanctions following the unheard
of acceptance of responsibility.
The fundamental issue, however, relates to governance - governance that
empowers. At another level, it illustrates the validity of the Jamaican
saying - "Long road bring sweat, short road bring blood." At
this stage, prior to the proposed report to Parliament today, and from the
confusing information available to the public - there are possible
interpretations. The most generous interpretation is that Minister
Paulwell applied his usual enthusiasm and well grounded anxiety to meet
the deadline of providing 40,000 new jobs through the use of the billion
dollar Intech Fund. He was ably assisted by several state agencies, in
particular NIBJ to fast-track what otherwise would not be on track. Result
- derailment.
The worst case scenario boggles the mind of the uninformed public. This
would involve following the Opposition Leader's call for the Police Fraud
Squad to take an immediate interest in the case. Equally appalling is the
way the press has had to be literally 'pulling teeth' to extract the
simplest of information from public officials on behalf of a powerless
public. This was clearly in evidence with the contemptuous arrogant
display by NIBJ's president, Rex James, on the Breakfast Club morning
radio programme. The public may want to remind themselves that Mr. James
migrated directly from the FINSAC bailed-out NCB to his present post.
In 1992, the Nettleford Committee on Governance identified some of the
problems associated with our current debacle: "..Public faith in the
process of governance is steadily declining. From this experience it has
been concluded that the machinery of government is in need of drastic
restructuring". Similar statements were republished in the Orane
Report of 1999 which itself stated: "It is therefore evident that
a phenomenon of organisational paralysis exists where large numbers of
people know what the problem is, know what the options are for solutions,
yet very little if any implementation takes place."
The casual response to the questions posed by Opposition spokesman on
Finance, Audley Shaw in November goes to the heart of governance.
Parliament - (The Legislature) the House of Representatives is supposed to
speak on our behalf - to carry out oversight functions - to do our
informal due diligence. When any representative speaks, the Cabinet (The
Executive) is expected (though not required) to respond in a timely, open
and candid way. Treating our parliamentarians as political eunuchs
demonstrates the need for fundamental change in the system i.e. to
rearrange the existing balance of power through the separation of powers.
The Stone Report of 1991 correctly states that: "these
large majorities have encouraged governing parties to ride roughshod over
Parliament, to completely dominate the agenda of activities in Parliament
and have discouraged vigorous parliamentary opposition, criticism of
government policies and vigilant critical oversight and monitoring. The
rapid shrinkage of backbenchers reinforces this tendency as most elected
MPs affiliated to the governing party get absorbed into Ministry jobs and
this reduces their enthusiasm for parliamentary duties and gives them a
perspective than views things from the point of view of government rather
than the point of view of representing the constituencies that elected
them."
The media over the weekend reported that the Prime Minister instructed
Minister Paulwell to provide a full report on the Netserv matter to
Parliament this Tuesday. He further assured the nation that "we are
accountable to provide full and honest answers in this matter." The
Prime Minister however also has some questions to answer before Minister
Paulwell speaks. Why has it taken the executive arm (the Cabinet) some
four weeks since the matter was raised in Parliament before he recognised
the problem publicly? This four-week delay included two weeks of the most
agonising, nauseating, gruelling and mentally abusive display on talk
radio by stakeholders in this real life drama.
But back to the essence of this Netserv issue. This along with so many
other events of the recent past is not so much about personalities as it
is about the national will (all of us) to put in place the necessary
checks and balances to allow for transparency and accountability in public
affairs. Accepting responsibility is also a major moral and ethical
problem in our society at most times but especially now.
After the 1999 Gas Riots, the Prime Minister stated, "the old
order - the closed distant and authoritarian systems of governance are
being forced to give way to a structure which is inclusive, responsive and
accountable to the new, proud, informed, assertive Jamaican Citizen of the
21st Century."
Where is the responsiveness in the Netserv case? Who is included here?
Where is the accountability in this nightmare? Where is the timely
responsiveness to Parliament, the media and the people? The Stone,
Nettleford, Orane and Moses Reports all speak directly and eloquently
to this issue of governance. These reports were all commissioned by the
Government over the last decade. John M. Schear in Legitimacy in the
Modern State notes: "The thickening atmosphere of resentment and
hostility, the drop-out cultures of the young are the cries of people who
feel that the processes and powers which control their lives are inhuman
and destructive. They are the desperate questions of people who fear that
their institutions and officials have no answers. They are the overt signs
of the underlying crisis of legitimacy in the Modern State."
A dysfunctional system disempowers everybody - rulers and ruled.
Sufficient analyses abound to point us to a shared vision and a renewal of
hope. The information is accessible - use it. A Shared Vision can empower
us." Natty never get weary yet" One Love, One Heart.
Dr. D.K. Duncan is a former General Secretary and Cabinet
Minister in the PNP administration in the 1970s. He is currently in
private dental practice . He recently established 'The D.K. Duncan
Political Institute: Centre for Transformation and Political
Entrepreneurship'. E-mail: dktruth@hotmail.com
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The
Netserv fiasco
IN ANY society that places a value on accountability Minister Philip
Paulwell would by now have done the honourable thing and tendered his
resignation from the Cabinet over the fiasco of Netserv Global
Communications Ltd., and what seems to be the unravelling of his
information technology policy.
Netserv, which has been placed in receivership by the National
Investment Bank of Jamaica (NIBJ), was one of the beneficiaries from a
fund created by the Government to create jobs in the IT sector using the
US dollar windfall generated from the sale of cellular licences.
A number of companies, the majority being overseas entities, were lent
millions of dollars from the fund at very low interest rates with the
understanding that they would set up call-centres. Minister Paulwell's
promise, which was announced with great enthusiasm and received widespread
public support, was that 40,000 jobs would be created in the sector. But
enthusiasm is never a surrogate for diligence. There were warning signs
about some of the companies that Mr. Paulwell was enlisting to be a part
of his IT revolution. At least three of the companies have been the
subject of negative publicity. One was said to have owed over $20 million
in statutory deductions, Government sources said the figure was closer to
$5 million.
In the case of Netserv, this company was granted a loan of $180 million
in June and undertook to create 3,000 jobs in the first year of operation,
and to boost this to 10,000 jobs within three years. Within months there
were reports of problems with the company; its inability to pay rent and
to meet the wage bill. And the employment figure was nowhere what had been
projected.
Now that Netserv has gone under Mr. Paulwell has gone very silent on
the issue and we are now hearing about the company through the president
of the NIBJ, Mr. Rex James. Mr. James has not said anything about the $180
million loan but said the operations of the company are no longer viable,
hence the need for a receiver.
Mr. James has also said a great deal more and has raised issues which
speak to the viability of the IT sector. He has described the sector as
one of high risks, highly competitive and volatile. Were these factors
taken into consideration before millions of dollars of money which belongs
to the people of Jamaica were given as loans on very concessionary terms
to companies to launch IT operations in Jamaica? Many more questions need
to be answered. |
Mission for Manning

March 10, 2002
By Raffique Shah
FEW people rank Patrick Manning as their favourite politician. In all
the polls conducted over the past 15 years or so, when respondents were
asked who they favoured to be Prime Minister of Trinidad and Tobago,
Manning's ranking was second at best, and sometimes lower than that. In
fact, even inside the PNM, which he has led since 1986, he in nowhere as
popular as his two predecessors. Yet, in this hour of reckoning, at this
critical juncture in our politics, I do not believe the nation could
have asked for someone better than Manning.
Before Lloyd Best blasts me to smithereens, and Denis Solomon and some
other political analysts question my sanity, let me explain. Manning may
not possess the charisma that 50 years of "doctah politics"
has left us yearning for, or the sense of timing that characterises
astute leadership. But he is neutral enough to steer us through a period
in our political history that demands neither of the above qualities.
Besides running the day to day affairs of government, what are the
issues he must address urgently?
Firstly, he must do all within his power to ensure that when next an
election is called, it must not only be free and fair, but it must be
seen to be free and fair. And secondly, he must bring to justice those
who have pillaged the Treasury, those politicians and their unholy
allies who not only stole from the people's patrimony, but who borrowed
more money in the people's name and proceeded to steal from that, too.
All that is required of a prime minister to fulfill these needs are a
basic understanding of governance (which Manning has), honesty, and a
will of steel that can withstand the verbal and other assaults that are
sure to come as he pursues these goals.
His detractors may question whether he has any of the above-mentioned
qualities. Time will tell-and he does not have much of that to prove it.
Let us, however, be realistic in assessing the man, and among
"us" I include strong UNC supporters. If the scandal
surrounding the Biche Secondary School has not shocked the nation into
numbness, into accepting that all was far from well when Basdeo Panday
was Prime Minister, then I don't know what would. That alone should send
signal to everyone who was misled by his tart tongue that Panday was at
best a negligent leader, and at worst....well, I'd better not venture
there.
Really, that Biche school scandal is so outrageous, it defies
explanation. When Colm Imbert, who was in opposition at the time,
queried the locations of some of the schools being built under the
IDB-funded programme, including the one at Biche, he was dubbed a
"douen". Now we have other evidence before us that support
Imbert's views about the remote areas in which some of the schools were
located. A consultant hired by the IDB, one Kenric Burgess, all but
concurred with Imbert regarding the siting of some of the schools.
Today, the Biche building (I don't know that we can afford to label it
"school" or even "structure") is crumbling proof
that the UNC's highly-touted performance team sent $30 million down a
fissure in the earth, never to be recovered.
What is curious about this affair is that the two ministers who presided
over the project claim to know nothing about the site being unsuitable.
Kamla Persad-Bissessar told the media that the site had already been
chosen when she took office as Minister of Education. Her predecessor,
Adesh Nanan, also denied knowledge of problems with the site.
Persad-Bissessar claimed she had never seen the Burgess Report, which
was sent to Panday government since last July. On the other hand,
ex-Finance Minister Gerald Yet Ming said he'd seen it and had taken
certain steps to ensure that the IDB funds were not badly spent.
So, returning to the scene of the crime-and believe me, there can be
nothing more criminal than frittering away money borrowed in the name of
the populace-we have to question who is lying and who is telling the
truth. If Yet Ming read the damning report, surely he must have alerted
the Prime Minister? And why not the Minister of Education, since the
building fell under her portfolio? If he didn't, if he kept the report
secret, then he must be held liable. But I don't believe that. Yet Ming
may be a UNC-til-ah-die type, but he does not strike as being so
dishonest as to cover up a major scandal that would put his reputation
as Finance Minister, and as a professional, in jeopardy.
What we can deduce from the evidence produced thus far is that the UNC
was so bent of portraying itself as a performance-driven government, the
Cabinet could not be bothered with trivial issues like the selection of
sites for several schools. Biche just happens to be the most scandalous
of the lot. But the Tableland School was also built in an area that
every fool knows is prone to massive landslips. The Blanchissuesse
School is in the midst of a forested area that makes security a
nightmare. Worse, the Biche building already shows signs of fundamental
structural problems, which is why I shall not refer to it as a
"structure".
To compound the criminal negligence displayed by the former government,
up comes Bill Chaitan, geophysicist by claim, saying that he
"looked and the site" and reported back to Cabinet that all
was well. Really, were they playing "dolly house" in Cabinet?
The scandal surrounding these schools, among them significant cost
over-runs, stinks. And to think that there are one-eyed midgets out
there who see nothing wrong with what the UNC government did, or failed
to do. This is where Manning's resolve must come into play.
President Robinson's decision to appoint him, not Panday, as PM, was
fortuitous. Because if Panday had remained in office, we'd hear nothing
about these multi-million-dollar scandals. Now, not a day passes that we
don't hear of the trickery we were subjected to by him and his
ministers. Manning's mission, therefore, must be to bring to light what
the UNC kept in darkness, and to bring to justice those who were
criminally negligent-or wholly corrupt-in dealing with the people's
money. We do not need a rocket scientist to accomplish that.
The ball-and balls-is in his court. We tolerated Panday's grossness for
six years. Can't we allow Manning one year to restore some integrity in
public life?
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Biche High...

All for nought... An estimated $30
million went into the construction of the Biche High School which was
never occupied and which has now been declared unfit for human habitation.
school in danger zone
By Debra Ravello Greaves
THE Biche High School, which has now been found “unfit for human
habitation”, was plagued with trouble right from the start of
construction. Even while there were strong protests that the school was
located in a danger zone, construction pressed on.
The Inter-American Development Bank has now recommended
the $30-million school be abandoned as “unfit for occupancy”. This
coming on the heels of the shutting-down of the $30-million Ibis High
School on Sackville Street, Port of Spain, for different environmental
reasons.
Both schools formed part of former education minister
Kamla Persad-Bissessar’s drive to provide “universal education for
all” in the year 2000.
Cariri and the Pan American Health Organisation (PAHO)
conducted tests at the compound and Persad-Bissessar later announced that
a Cariri report stated the “air standards there are within accepted
world standards”.
The Trinidad and Tobago Unified Teachers Association
(TTUTA) had sounded the warning from early that the school was being built
on dangerous ground and posed a threat to life.
The compound is located on a geological fault zone and
deposits of hydrocarbon and natural gas were also found in the area.
The Ministry of Energy warned, too, that the site posed a
threat to life as there were poisonous gases being released there.
The Ministry alerted the Planning Division’s director of
possible hazards such as health and environmental risks at the site. It
stated that “the dangerous releases of flammable liquid or gaseous
hydrocarbons would always be a possibility and would place lives and
property at risk”.
A letter dated May 12, 2000, from the Ministry to the
Planning Division stated: “As you are aware, naturally occurring
deposits of hydrocarbon and natural gas have been discovered on the
subject site. The Ministry of Energy associates these deposits with the
presence of a major geological fault zone existing in the area.”
The letter, signed by the Director of Operations, said
that it was alerting the division “about the serious health, safety and
environmental risks that might exist” and recommended:
• a proper engineering geological assessment of the site
to be undertaken to determine its suitability for the type of construction
being done and
• that dangerous releases of flammable liquid or gaseous
hydrocarbons would always be a possibility and may place lives and
property at risk.
TTUTA wrote then-Education Minister Persad-Bissessar
expressing its worry over health and safety conditions at the Biche site,
stating that “young students will face potential risks”.
Biche High was one of 11 new secondary schools which were
constructed in 2000 through the Secondary Education Modernisation
Programme (SEMP) and funded by the IDB. Cost overruns and delays saw the
project escalate from $136 million to $344 million.
The school was built to accommodate 525 students.
Persad-Bissessar was fast-forwarding the Government’s
“universal education” plan. It was also the final year of the Common
Entrance exam and Persad-Bissessar had promised “places for all” in
secondary schools. The schools would have been taking in new students but
only four of them were complete at the start of the 2000 school year.
Biche was not ready in September 2000 and students
assigned to the school are still being accommodated at the Manzanilla High
School. The school was rescheduled to open October 2, 2000 but remained
closed for further environmental tests.
TTUTA conducted extensive site visits at the Biche to
check out the readiness and safety conditions at the schools during
construction. Not letting up on its safety campaign, TTUTA demanded the
compound be given a certificate of clearance before students were allowed
in the gates.
“Given the fact that there are concerns about where it
is being built and that poisonous gases might be emanating it is important
that when the school is delivered this is done,” TTUTA president Trevor
Oliver said.
He also suggested that findings on the assessment of the
area be made public “so that people could feel confident that our
children are not at risk”.
However, Persad-Bissessar continually responded: “I will
not put in danger the health and safety of any child.”
On one visit to the compound, the Express was told by a
construction official that a Cariri agent who was monitoring the release
of gases at four points found very low emissions of gases.
The main focus was on completing construction. But while
the official acknowledged a fault zone, he said the school should be safe
as it was being built as an emergency centre as well. An earthquake, he
said, should be “the least of worries”.
Then-Minister of the Environment Reeza Mohammed,
geological experts and Energy Ministry officials had also inspected the
site.
TTUTA wrote Persad-Bissessar in 2000 expressing its worry
over health and safety conditions at the Biche site, stating that “young
students will face potential risks”.
“We are very uneasy that work continues at the Biche
site where experts have warned about serious health and safety risks,”
TTUTA said.
Persad-Bissessar said at the time, a team of experts,
including Environmental Management Authority officials, were looking at
the Biche site and she was awaiting a report and PAHO would be brought in
as well to assess conditions at the school. She subsequently called in
PAHO, who recommended further testing as that done was inconclusive. |