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The Integrity Commission has found that a construction company linked to then-permanent secretary in the Ministry of Labour and Social Security, Colette Roberts Risden, incurred a cost overrun of more than $23 million for works done at the Ministry in 2019.

The 75-page investigative report, tabled in the House of Representatives on Tuesday, found that a $37.18 million contract was awarded to Nubian 1 Construction through direct contracting on March 15, 2019 for emergency repairs of capping of double TBeams and painting of building.

But, the company incurred a cost overrun of $18.64 million for additional works in relation to the contract for the repair works.

A subsequent contract valuing $10.14 million was also awarded to Nubian 1 Construction on April 23, 2019 using the limited tender procurement methodology for renovations of executive suites. This project had a variation of $4.97 million.

According to the report, the cost variation was as a result of additional works required to enhance layout, functionality and public spaces such as the outer bathrooms, corridor leading to executive office and elevator areas that were not part of the original scope.

Director of Investigation Kevon Stephenson concluded that the failure on the part of the Ministry of Labour and Social Security to obtain the requisite National Contracts Commission endorsement prior to the start of the ‘variation’ works, breached Section 1.5.3 of the Government of Jamaica Handbook of Public Sector Procurement Procedures.

Mr. Stephenson also concluded that the invitation of only three bidders in respect of the ministry’s use of the limited tender procurement methodology was contrary to the provisions outlined in the Ministry of Finance and Public Service Circular number 27 of 2016.

The Integrity Commission said it began investigations after it received allegations in August 2019 that all procurement done by the Ministry of Labour and Social Security since 2016 were by way of direct contracting or limited tender.

But, these claims were unsubstantiated.

The complaint also alleged that Nubian 1 Construction was a “favourite” of the ministry; again the commission found no evidence to support this.

In the meantime, it was disclosed that the principal of Nubian 1 Construction, is the cousin of the former permanent secretary Colette Roberts Risden’s husband.

Director of Investigation Kevon Stephenson concluded that the familial link raised significant conflict of interest concerns.

But, in a written submission to the commission, the former permanent secretary said she was initially unaware of the connection of the principal of the company to her.

She said she became aware of Wayne Gadishaw, whom she knew as Ludwig Gadishaw, at the time the contract was presented to her for signing.

Mrs. Roberts Risden said this information was shared with the ministry’s former director of administration. However, she could not recall the date the disclosure was made.

She also noted that a contractor being a relative of her husband should not be the main factor considered to determine that there exists a conflict of interest.

The Director of Investigation recommended to the Cabinet Secretary and Chief Public Procurement Policy Officer that there be clear rules governing the procedure to be followed where an accounting officer who is conflicted is a Permanent Secretary.

A copy of the report is to also be referred to the Office of the Services Commission for consideration.