Evidence of sweetheart deal in DB&G deal – Christie

The Office of the Contractor General (OCG) is pointing to irregularities in the handling of the sale of receivables from the sale of shares in the National Commercial Bank (NCB).

The findings are contained in a 110-page report, titled Alleged "Sweethart deals", involving the then-governing People’s National Party (PNP) administration, and former Investment Bank, Dehring Bunting and Golding Limited (DB&G).

The OCG's investigation was sparked by allegations made by Finance Minister Audley Shaw during an April 23, 2008 sitting of Parliament.

Mr. Shaw pointed accusatory fingers at the former Finance Minister over what was an agreement signed on March 26, 2004, for the sale to DB&G, of Government-owned receivables due from AIC Limited following the sale of government shares in NCB.

Mr. Shaw also questioned the resale of a portion of the said receivables by DB&G to two public bodies, the National Insurance Fund (NIF) and the National Housing Trust (NHT).    

DB&G brokered the deal

In his report Greg Christie, Contractor General, said evidence provided by Dr. Omar Davies, and Dr. Wesley Hughes, former head of the Planning Institute of Jamaica, shows DB&G went to the Finance Ministry with a proposal for the sale of AIC receivables in January 2004.

The OCG concluded that this was an unsolicited proposal and there was no evidence that Dr. Davies tried to solicit other financial institutions to provide similar services which DB&G provided to the Government in regard to the sales.

In addition, the OCG was unable to determine that the transaction was fair, transparent and beneficial to the government, given the lack of competition.

No more unsolicited proposals

In his three paragraph recommendation the OCG said the concept of the unsolicited proposal should be immediately removed from the Government's Procurement Guidelines.

The matter has been referred to the Solicitor General and the Attorney General to determine whether the actions amounted to a breach of the National Insurance Scheme Act.