News Statement by
Vincent Peet MP North Andros & The Berry Islands
Opposition Spokesman on Public Works
 
PROGRESSIVE LIBERAL PARTY
For Immediate Release
 
15th December, 2008
 

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.

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Vincent Peet MP
Progressive Liberal Party