PLP CONCERNS ABOUT THE AWARD OF US$120 MILLION ROAD
IMPROVEMENT CONTRACT
TO JOSÉ CARTELLONE CIVIL CONSTRUCTION OF ARGENTINA
The public interest demands that the Government answer
pertinent questions about the ability of the Argentinean contractor José
Cartellone Civil Construction to complete the road works for the New Providence
Road Improvement Project job that will mean 120 million dollars of hard
earned Bahamian money being spent. This contractor has a history
that raises questions both at home and abroad about its ability to complete
the works within the contractual costs.
The FNM government under whose watch the first part of
the New Providence Road Improvement Project was botched should be particularly
careful in the expenditure of these funds.
Firstly, the services of the selected contractor, José
Cartellone of Argentina, were previously rejected by The Bahamas Government
under the PLP just four years ago because of its inability at that time
to secure the required Performance Bond to complete the road works ordered
under the project, even after the Government reduced the amount of the
Performance Bond. Further, the financial statements presented by
this company raised many questions.
The financial solvency of the present company is relevant
because another company hired by the FNM Government to complete the road
works went into bankruptcy and left the Bahamian people high and dry, a
mess which the PLP had to clean up. The public need only remember
that under the FNM, Associated Asphalt, the contractor that the FNM hired
to construct the roads, ended up filing for bankruptcy and could not complete
the road improvement project. The present government should therefore
take the utmost care and seek to avoid going down this same road again.
The PLP calls on the Government to make public the financial
health of this contractor, José Cartellone of Argentina and to confirm
the security and amount of the Performance Bond required by the contract.
Further, we call on the Government to make public the level of imported
manpower and equipment associated with this contract.
We refer to an article in the Jamaica Gleaner on September
14th, 2005 that quotes excerpts from the Contractor General’s report tabled
in Parliament about the North Highway Project in Jamaica, a contract awarded
to the very same contractor José Cartellone. The report from
the Jamaican Contractor General said:
“We concluded from our observation that poor management
and inadequate financing account for many of the delays”, the report said.
“Some of the overruns can also be attributed to poor planning and failure
to adhere to strict contract administrative procedures.” The report
went to say that much of the delay was “due to financial problems experienced
by the Argentinean contractor José Cartellone Construcciones Civiles.”
The PLP raises these issues to ensure that the requisite
steps will be taken so that at the end of the day, the Bahamian taxpayer
receives value for money and unnecessary construction costs are not passed
on to them.
Secondly, the PLP calls on the Government to explain
the reasoning behind its decision to abandon the successful Bahamian joint
partnership and the engagement of wholly Bahamian talent and expertise
during the previous phase of this project. One needs only to travel
along Tonique Williams Highway, the Baillou Hill Road Roundabout to Robinson
Road, and the Sir Milo Butler Highway extension to Carmichael Road to appreciate
the wealth of world class talents and skills right here in The Bahamas.
Thirdly, the PLP calls on the Government to fully disclose
the level of involvement of the company Bahamas Hot Mix in this project.
Hot mix is a company in which, reportedly, the Deputy Prime Minister had
a shareholding. This should be clarified. We are told that
this Argentinean company has its offices in the Town Centre Mall, another
company in which the Deputy Prime Minister reportedly has shares.
There should be complete transparency and full disclosure
in this matter so that there is no question about a possible conflict or
even the appearance of a conflict between the public duties and responsibilities
of a Cabinet Minister MP and his private business interests.
The PLP reminds the FNM government that public policy
must necessarily reflect the collective will, desires, and sensibilities
of the people who would be served by these policies, and on the face of
it, these sets of policy decisions made by the Government must be fair,
cost effective and transparent.