Grindley, Budram-Ford referred to IC’s director of corruption prosecution

Kevon Stephenson, director of investigations at the Integrity Commission (IC), has accused the former Petrojam General Manager (GM) Floyd Grindley and former head of the procurement unit at the state-owned oil refinery, Ronique Budram-Ford, of the “common law offence of misconduct in public office” and breaches of the Corruption (Prevention) Act.

In a special report into allegations of irregularity, conflict of interest, and corruption in the award of certain contracts by Petrojam Limited, the state-owned oil refinery, tabled in Parliament on Tuesday, the IC cited other breaches such as contravention of the 2014 Government of Jamaica Handbook of Public Sector Procurement Procedures and breaches of the Contractor General Act – Public Sector Procurement Regulations 2008.

Stephenson referred both Grindley and Budram-Ford to the director of corruption prosecution for “such further action, as deemed appropriate”.

The director of investigations made his recommendation on the basis that Grindley “may have acted negligently in the discharge of his fiduciary obligations and responsibilities as then general manager of Petrojam”.

Stephenson said that Grindley also apparently disregarded the advice and caution of the former procurement unit head concerning a deviation from the procurement guidelines and his subsequent approval and insistence in the award of contracts to Main Event Entertainment Group Limited, utilising the direct contracting methodology.

IMPROPER INSTRUCTION

According to Stephenson, by Grindley’s own admission, he acted on the alleged improper instructions of then Petrojam Chairman Dr Perceval Singh to approve what appears to be the irregular award of contracts to Construction Solutions Limited, Main Event Entertainment Limited, and Asha Corporation.

The IC’s director of investigations also highlighted what he described as “the apparent more-than-platonic relationship between Floyd Grindley, former general manager, and Ronique Budram-Ford, former procurement unit head…”.

He indicated that the relationship existed in the period in which several contracts were awarded in an apparent irregular manner to ASC Business Services, the company with which Budram-Ford‘s sister, Rishka Budram, acted on behalf of and is affiliated.

Stephenson said that Petrojam awarded the contracts upon the instructions of Budram-Ford as the former procurement unit head and the subsequent approval by Grindley.

The report said that the involvement of Budram-Ford in the award of contracts to ASC Business Services may amount to nepotism and a conflict of interest, among other breaches.

He noted that Budram-Ford, in the execution of her public function, appeared to have advanced a private interest, which resulted in a monetary benefit to her sister and/or her sister’s child’s father.

In this respect, the director of investigations said he had reasonable grounds to suspect that Budram-Ford’s actions amounted to a breach of the Corruption (Prevention) Act.

PERIMETER FENCING

Further, the commission has dismissed an explanation by Petrojam for engaging Construction Solutions Limited, through the emergency contracting procurement methodology, to construct a perimeter fence at the refinery.

Stephenson said that after examining the evidence and the justifications provided by Petrojam, the anti-corruption body has reasonable grounds to conclude that Petrojam breached the Government’s public sector procurement procedures.

The director of investigations also highlighted the $20.4 million variance between the estimate prepared by Petrojam Limited and the eventual contract sum, which was awarded to Construction Solutions Limited. Petrojam estimated it would cost $76.3 million to replace the north perimeter fence. However, the value of the contract amounted to $96.7 million.

According to the IC, Grindley claimed he was instructed by the then chairman to engage Construction Solutions Company Limited. However, Singh denied any such involvement or directive.

Highlighting the corporate governance framework for the public sector in Jamaica (2012), Stephenson pointed out that the chairperson is responsible for leading the board in the development of policies and strategies while the chief executive officer is responsible for the day-to-day management of the public body.