TAJ spent $371m to lease, but not occupy, two properties

Despite spending some $371.8 million of taxpayers’ money to lease two properties over a three-year period, Tax Administration Jamaica (TAJ) failed to occupy the buildings up to August 31 last year.

The report was tabled in Parliament yesterday after being held by Speaker of the House Juliet Holness for approximately two months. The report was sent to Parliament on January 29.

The Auditor General’s Department (AuGD) conducted a special audit of TAJ’s leasing arrangements in response to certain allegations which came to the attention of the department.

Reports are that TAJ was seeking a property to relocate its tax office in St Mary. It was further alleged that the sitting member of parliament, through his private company, bought a commercial building within his constituency, a few metres from the existing tax office, which was subsequently rented to TAJ for approximately $700,000 per month.

It was also alleged that the building was not yet occupied by the TAJ, although approximately eight months’ rent had been paid and renovation or retrofitting works were yet to commence.

Based on the allegations, the AuGD sought to assess whether there were breaches in the TAJ’s policies and procedures as well as government of Jamaica guidelines.

During the audit, the AuGD determined that the information received in the allegations were true.

NO EVIDENCE OF INTERFERENCE

However, no evidence was presented which suggested that the sitting member of parliament, who is listed as the director of the private company that owns the Annotto Bay location in question, interfered with the TAJ’s procurement process, or influenced TAJ’s decision to lease the property.

Auditor General Pamela Monroe Ellis said the TAJ did not receive permission from the Commissioner of Lands prior to entering into the lease agreement for the Annotto Bay property.

The Monroe Ellis-led Auditor General’s Department reported that the TAJ is also yet to occupy a property leased in Greenvale, Manchester, although it spent a total of $356,802,893 over the past three years.

As at August, 2023, the auditor general (AG) said despite the completion of the proposal for renovation and furnishing in June 2019, and the first lease payment in September 2020, the necessary retrofitting/renovation works had not yet commenced as of August 2023.

The AG pointed out that there are two other locations within the Mandeville area that TAJ occupied, costing the Government $51.2 million per annum.

TAJ’s monthly lease payments for the properties combined, as at August 2023, amounted to $11,378,371.

The TAJ indicated that it sought to relocate its operations in Mandeville to the 42,300-square-foot location to eliminate the challenges in the management and delivery of taxpayer services occasioned with operating the other two locations.

Edmond Campbell