PS’s family connection sparks concern over ministry contracts, $23m overrun

A construction company viewed as having a connection to then-permanent secretary (PS) in the Ministry of Labour and Social Security, Colette Roberts Risden, has incurred a cost overrun of more than $23 million for works done at the ministry in 2019, an investigative report from the Integrity Commission (IC) has revealed.

The report, tabled in the House of Representatives yesterday, disclosed that the principal of Nubian 1 Construction, the company that was awarded two contracts by the ministry, is the cousin of Roberts Risden's husband.

It noted 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”.

However, 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, elevator areas [that] were not a part of the original scope”.

The report further revealed that the contracts were endorsed by Roberts Risden and that both recommendations from the procurement committee were approved by her.

However, Roberts Risden stated that she was initially unaware of the connection of the principal of the company to her.

According to her, she became aware of the principal of the company at the time the contract was presented to her for signing.

“After signing, recognising the surname, I made enquiries and realised that Wayne Gadishaw (the principal) is the same person who I know as Ludwig Gadishaw,” she said.

DISCLOSURE

She said this information was shared with the ministry's former director of administration. However, she could not recall the date the disclosure was made.

“The disclosure was made to ensure and to try as best as possible to not have any real or perceived conflict in the execution of said contracts,” she said.

However, when the IC made enquiries of the former director of administration for this information, he noted that the former director did not “recall the facts surrounding the matter”, nor have any documentation relating to the award of the contract.

IC Director of Investigation Kevon Stephenson highlighted sections of the Government of Jamaica Handbook of Public Sector Procurement Procedures, which outlined that a public officer shall declare any relationship with a bidder, contractor or consultant and shall take no part in either the decision-making process or the implementation of any contract where such a relationship exists.

A personal relationship is defined as consanguinity or affinity. Disclosure may be made in writing or verbally, in the context of a meeting. However, having made the disclosure, the individual shall not sit in the meeting while deliberations on the issue are being conducted.

Last month, the Ministry of Labour and Social Security announced that Roberts Risden, who had been PS since 2015, was reassigned to the United States to become Jamaica's lead on the farm work programme in North America under a two-year assignment.

In its 75-page report, the IC said it commenced investigations after it received allegations in August 2019 that all procurement done by the ministry since 2016 were by way of direct contracting or limited tender.

The complaint also alleged that a “favourite” of the ministry, Nubian 1 Construction, was awarded contracts by way of direct contracting under emergency circumstances to carry out repair works at the ministry when no emergency existed.

In its findings, the IC outlined that, for the period 2016-2019, 238 contracts were awarded by the ministry, totalling more than $820 million. Of this amount, 102 contracts, valuing more than $246 million, were done through direct contracting, while 101 contracts with a value of more than $348 million were done through limited tender.

The IC also noted that there was no evidence to support that Nubian 1 Construction was a favourite of the ministry as only two contracts were awarded to Nubian 1 during the referenced period; and one of the two contracts awarded underwent a limited tender competitive process, whereas the other was by way of direct contracting, under emergency circumstances.

The IC recommended that the report be referred to the Office of the Services Commission (OCS) for “consideration”.

The OCS is the administrator for the three services commissions which recommend appointments to key public posts.

sashana.small@gleanerjm.com