Jamaica
KINGSTON, Jamaica — In response to allegations made by Opposition Spokesman on National Security, Peter Bunting, regarding the SPARK Programme, the Government of Jamaica has reassured the public that the initiative is being conducted with transparency and in accordance with the law.
The ‘Shared Prosperity through Accelerated Improvement to our Road Network’ (SPARK) Programme aims to improve road conditions island-wide.
Bunting, who was speaking on a political platform over the weekend, said “Dem run this likkle con business weh dem talking bout SPARK programme” while lamenting that despite the government’s indications that the programme is transparent, he believes Chinese companies will be awarded the majority of contracts under the initiative.
“Dem done know who a get the contracts already…me a prophesy say is a Chinese company a get dat contract,” he said, while also claiming that the government will be using the programme’s funds to finance the upcoming elections.
“You mark my word, the JLP (Jamaica Labour Party) a go nyam out most a dat money,” Bunting alleged.
However, in its release on Monday, the government outlined that the $40 billion initiative is designed to promote sustainable community development across Jamaica and shared that the procurement process for the programme is conducted in adherence with local laws and international best practices.
“All contract packages will be subject to approval by the Public Procurement Commission (PPC) and the Cabinet. Additionally, all contracts, as is customary, will be reported to the Integrity Commission, ensuring full compliance with regulatory standards and transparency,” the release outlined, highlighting key aspects of the initiative.
The statement further noted that the narrative currently surrounding the initiative is baseless and seeks to “detract from the positive impact this programme aims to achieve.”
“The SPARK Programme is committed to working collaboratively with communities to ensure that the benefits of the programme are realized in a fair, transparent, and effective manner. This initiative is a testament to our dedication to building a better Jamaica for all citizens, free from political influence and focused on genuine community upliftment,” the release continued.
In another release addressing Bunting’s claims, Member of Parliament for West Rural St Andrew, Juliet Cuthbert-Flynn, on Monday described the allegations as “evil and barefaced.”
“The fact of the matter is this programme has met the standard of probity and will address a critical need of the Jamaican people for better roads,” she said in her statement.
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Bahamas
NASSAU, BAHAMAS — The Organization for Responsible Governance (ORG) says that it is “sorely disappointed” over what it called the inadequate funding allocated to the Freedom of Information Unit in this year’s budget.
The funding in the 2024/2025 budget is listed at $140,000, which is unchanged from last year.
In a statement, ORG said: “This amount is insufficient for necessary technology, training within the government, and public education. Adequate funding is essential for realizing the benefits of this long-awaited right.
“Additionally, the draft budget lacks designated funding for an Ombudsman office and maintains insufficient funding for the Public Disclosure Commission, despite a planned revamp of the law. These mechanisms are vital for transparency, accountability, and effectiveness in government decision-making and spending.”
ORG has long advocated for the full implementation of the Freedom of Information Act (FOIA), describing it as a pivotal piece of legislation that upholds the fundamental principles of democracy: government accountability, transparency, and public participation in national decision-making processes.
Despite their concerns, ORG commended Prime Minister Philip Davis and his administration for their efforts outlined in last week’s Budget Communication. “We applaud the significant strides in advancing the Public Procurement Act 2023 highlighted in the address. The registration of over 6,000 vendors and the reported substantial savings for the last fiscal year are commendable achievements that demonstrate progress toward transparency and efficiency in public procurement.”
ORG noted that the online procurement portal must fully comply with the legislation to fully realize the Public Procurement Act’s potential in fostering sustainable and inclusive economic growth.
“This includes the timely presentation of all procurement opportunities and the disclosure of award details. Ensuring that state-owned enterprises adhere strictly to these requirements is also crucial. By committing to complete transparency and comprehensive enforcement, we can enhance public trust and create a more competitive and fair procurement environment. ORG hopes to see these priorities emphasized in the coming year, as they remain essential for engaging the private sector, citizens, and civil society in our shared goal of good governance and economic resilience,” the statement continued.
Additionally, ORG commended the government for the increased revenue raised over the past year through the enforcement of outstanding taxes and fees and for achieving the estimated reduction of national debt to GDP levels.
“ORG is particularly excited about the planned re-establishment of a Fiscal Council as mandated by the Public Finance Act, which will enhance fiscal oversight and transparency,” ORG continued.
“The reported savings and inclusiveness of the Government Procurement Portal, with over 6,000 vendor registrants, are encouraging. The full development of this platform is crucial for transparent and accountable public procurement processes.
“ORG looks forward to learning more during the budget debate about how the Procurement Act will be fully implemented. All government and state-owned enterprise procurement opportunities and awarded contracts must be publicly available.
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Trinidad and Tobago
The Joint Consultative Council (JCC) is concerned about Procurement Regulator Beverly Khan’s failure to issue an annual report as required by section 24 of the Public Procurement and Disposal of Public Property Act, which was operationalised in April last year.
In a press release on Monday, the council, through its president Fazir Khan, shared its concern, while also saying this was important given Finance Minister Colm Imbert’s projected $9 billion deficit.
In a June 4 press release, the International Monetary Fund (IMF) – which welcomed Trinidad and Tobago’s sustained economic recovery – commended the proclaimed Procurement Act, which it said “should help improve the efficiency of public spending.”
The council’s release said the independent report should have been submitted to Speaker Bridgid Annisette-George, Senate president Nigel de Freitas and Imbert in December 2023.
It added that eight items were to be included in that report, including a figure representing the total value of contracts awarded by public bodies, another representing the cost of the total value of procurement-contract variances for 2023 and the number of unfulfilled contracts awarded by public bodies in respect of procurement.
Other items to be included were a summary of public procurement transactions for each public body, including subsections with the number of procurement contracts awarded; the number of procurement contracts varied; the quantum of those variances; number of unfulfilled procurement contracts and cost incurred; a brief description of the projects for procurement, the awardees, the value, scope of works and the expected deliverables of projects,as well as the lessons learnt from the management of procurement contracts.
The report also should have included the names of public bodies failing to comply with the act, an assessment of the overall performance of the procurement system and a summary of unresolved issues to be addressed as well as recommendations needing action on the part of the procuring entity.
The release said that report would have supplied critical data and information to Parliament and the public.
“Only then can any assessment of the efficacy of the new legislation be determined and adjustments can be made.
“This is even more dire at this time, when the 2024 mid-year budget review presented by the Finance Minister now projects a $9 billion deficit. Procurement reform is supposed to eventually realise savings in the vicinity of $4 billion-$5 billion annually.”
The council said it indicated to Khan that about 80 per cent of expenditure in public procurement was spent by only ten per cent of the approximately 400 public entities.
So, it said, “The Office of the Procurement Regulation, OPR) can concentrate their resources on the fewer large spenders in order to have the largest positive impact soonest.”
The release said a dangerous precedent was being set by the OPR in not issuing the report, which did not instil confidence in the public. It added that it sent a bad message to procuring entities that it was “business as usual.”
“We therefore urge the OPR to issue the annual report in compliance with section 24 of the Procurement Act, immediately,” it said.
Checks to the OPR’s website showed a 2023-2025 strategic plan with former regulator Moonilal Lalchan listed as its chairman among more recent reports. There are seven reports on the OPR’s website.
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Trinidad and Tobago
The Audit Office of Guyana has launched a probe into contracts issued by the Public Works Ministry for the supply of aggregate. The Minister of Public Works, Juan Edghill has confirmed that the probe is underway.
The issue was recently brought to light after reports surfaced that one of the contracted suppliers who benefited from sole-sourcing might have provided aggregate that may not be usable for the projects it was earmarked for.
In a statement last evening, the Works Ministry noted that since the current government took office, it has been fast tracking its developmental agenda which placed a demand on local aggregate in particular stone and crusher run, which saw prices being bumped up overtime.
The Ministry explained that in an effort to understand the capacity of the current market, Government met with several noted local aggregate providers/quarries and new quarry operators to ascertain their capacity and logistical challenges back in 2020, while contractors were also given the opportunity to import aggregate materials in an effort to meeting the demand and to keep the rate competitive.
The Ministry said it was realised that the local market could not service the demand sufficiently at the time and as result, severe price increases were experienced.
In November 2022, the Ministry went out to tendering for the supply of aggregates, but it claimed that there were still shortages and it made a decision to single source contracts.
“As such, and having conducted a public procurement process, and bearing in mind the over 1,100,000 tons supply deficit, the Government engaged 8 other suppliers much lower value contracts using Single Source Method of Procurement as catered for in the Procurement Act of Guyana. These suppliers were all vetted, samples of their aggregates tested and rates agreed upon to be in keeping with fair market value. This amounted to approx. 985,000 tons and sought to cater for the demands in regions 2, 3, 4, and 6; all of which had extensive projects being executed,” the Works Ministry explained.
It is that process that is now triggering both an internal and external investigation into the awarding of the contracts.
The Ministry believes that it had to intervene since there was an outcry in the construction and associated sectors over the high prices for aggregates.
There are reports that hundreds of millions of dollars in contracts were handed out through the single source method.
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Barbados
Barbados is set to receive US$56 million (BDS$112 million) more in financing from the International Monetary Fund (IMF).
The Washington-headquartered agency said on Friday it would immediately release the money after its executive board concluded the third review of the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). US$19 million (BDS$38 million) of the money is being paid out under the EFF while the US$37 million (BDS$74 million) falls under the RSF.
This latest release will bring the total disbursement which Barbados has received under the two funds to US$112 million (BDS$224 million).
Following a visit by a mission team May 13-21, the IMF reported on Friday that as far as the programme implementation for the EFF was concerned, “all quantitative performance criteria for this review have been met”, and in some cases surpassed target.
“Key structural benchmarks have also been completed, including those to: implement a formal and time-bound process for requalification of tax exemptions and waivers under the modernised framework; establish a Cash Management Unit in the Treasury Department; develop standard contracts for routine government procurement; and approve of plans for the reform of key state-owned enterprises,” it added.
However, two end-March structural benchmarks were not met: The National Insurance and Social Security Service (NISSS) has only submitted some financial statements, with the others to be handed in in the coming months; and efforts to launch a central online platform for government services and monitoring of public investment are still progressing,
“albeit with some technical delays”, the IMF said.
“Modifications to the June and September primary balance targets are proposed to accommodate a modest frontloading of critical capital expenditure ahead of the rainy season,” the international lender said.
As for the RSF, the IMF said the Barbadian authorities had completed both reform measures for this review. It noted that in March, the government tabled a Stormwater Management Act, replacing the Prevention of Floods Act; and Cabinet approved the Energy Efficiency and Conservation Policy
Framework to reduce energy use of all government agencies and develop efficient public lighting.
According to the IMF: “The authorities are also advancing important work on: a new Electricity Supply Bill to enhance competition and promote local participation in renewable energy investment; integration of climate risks into financial stability assessments; and integration of climate concerns into the public financial management process.”
The IMF noted that the island’s economy has recovered to pre-COVID-19 pandemic levels and its external position has improved. It further highlighted that gross domestic product (GDP) growth is expected to remain strong in 2024, driven by a rebound in tourism and related sectors.
The island’s US$1.5 billion in international reserves at the end of 2023, which represented seven months of import cover, was also highlighted by the Fund.
At the same time, the IMF highlighted a number of risks to the growth outlook for the economy, including the potential global economic and financial shocks, as well as natural disasters.
“The medium-term growth outlook remains vulnerable to potential global economic and financial shocks and natural disasters. An abrupt global slowdown or recession in key source markets (US, UK, and Canada) could impact tourism and weaken growth,” it said.
“An intensification of regional conflicts could also increase global
commodity prices and inflation, reducing real incomes in both source markets and Barbados. An abrupt adjustment in global financial markets could also see a rise in global risk aversion and a further increase in the cost of external financing, affecting the fiscal and external accounts.
“The economy remains highly vulnerable to climate change risks and natural disasters, which could have an adverse impact on economic activity, increase the fiscal deficit and public debt, and pose
financial stability risks. On the domestic front, deceleration of reform momentum could generate concerns about the fiscal consolidation and debt sustainability,” it added.
However, it added, these risks are mitigated by “the authorities’ excellent track record of implementation and strong commitment to reform”.
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