Daraine Luton, Staff Reporter

Kern Spencer ... was responsible for the Cuban light bulb project. - Norman Grindley/Deputy Chief Photographer

THE CONTRACTOR General and the Auditor General have been asked to investigate the circumstances under which the last People's National Party (PNP) government accrued a bill of more than $276.5 million in the distribution of free Cuban light bulbs.

In a statement to Parliament yesterday, Clive Mullings, Minister of Energy, Mining and Telecommunications, said the matter requires the "most thorough investigation".

"Accordingly, the Government has requested the Auditor General to conduct a detailed audit of all expenditure in respect of this project," Mr. Mullings said.

He added, "We have also invited the Contractor General to investigate the circumstances in which such huge payments were made to these suppliers without the required procurement procedures being followed."

The PNP administration had embarked on a programme to replace incandescent bulbs in households with the more efficient compact fluorescent bulbs.

The Cuban Government had donated four million of these bulbs. The then Government was required to meet the cost of clearance, storage and delivery of the bulbs as well as the transportation of the Cuban volunteers.

An incestuous relationship

However, in his presentation yesterday, Mr. Mullings left little doubt that an incestuous relationship may have existed in the awarding of the contracts relating to the distribution of bulbs.

Mr. Mullings said Universal Management and Development Company Ltd., which he said was incorporated just about the time the delivery commenced in 2006, was due over $85.6 million.

He added that Caribbean Communication Media Network Ltd., which the Government paid over $3.3 million for its services, was incorporated a week before Universal Management and Development Company Limited. The minister said the sole shareholder and director of each company was the same.

"The services for which Universal Management and Development Company Ltd. was paid were not tendered and no evidence can be found of any contract having been awarded to this company in relation to the project," Mr. Mullings said.

Mr. Mullings said that he was informed by officers at the Ministry that the implementation of the project was carried out "on the periphery" of the ministry and was not subjected to its normal internal management, accounting and audit controls.

"Instead, the project was handled by a monitoring committee chaired by the then Minister of State [Kern Spencer]. Payments in respect of invoices submitted were made by the Petroleum Corporation of Jamaica on the instructions of the then chairman of the board," Mullings said.

Mr. Spencer was the minister entrusted with the responsibility of the light bulb distribution project. Phillip Paulwell, who was the minister in charge of the ministry, asked Mullings whether he was aware of the value of the light bulbs to which Mullings responded: "The value would not be germain ... the end does not justify the means".

Seemingly aware that Mr. Mullings was due to make the presentation, Spencer had a multi-page prepared response.

However, as he was preparing to address the House, some opposition members cautioned him and he yielded.

Mr. Mullings said that the Auditor General has already begun his investigations.

"As soon as possible a report will be presented and let the chips fall where they may," Mr. Mullings said.

The Government has already paid out $114 million to the creditors but the remainder has been stayed pending the outcome of a recommendation from the Attorney General's Department.

It costs approximately $69 for both Jamaican and Cuban volunteers to deliver and install each of the four million light bulbs, which had an estimated value of between $1.5 and $2 billion

daraine.luton@gleanerjm.com