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CORRUPTION AND MISMANAGEMENT IN HIGH OFFICE

The cases of Jamaica and Trinidad and Tobago

  Discussion     Back to Caribbean Highlights   Homepage   Social Development in the Caribbean

Jamaica - The Netserv Scandal

The Netserv nightmare- D.K. DuncanPOWERLESSNESS ­ 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

 

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.

Trinidad and Tobago - The case of the Biche High School

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?

 

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.

                                                      © 2001. Lynette Joseph-Brown. All Rights Reserved.