PM transfers CAP responsibility to Finance Ministry

Prime Minister Andrew Holness has transferred responsibility for Clarendon Alumina Production (CAP) to the Finance Ministry.

CAP was previously under the Transport Ministry.

The alumina company is now the subject of a major controversy involving a multi-million dollar contract with the overseas-based CCPA Capital Partners, which is leading the incorporation of the JAMALCO refinery. 

READ: Opposition wants Integrity Commission, MOCA to probe CAP contract controversy

Jamaica House says in the spirit of transparency, the Government will seek to resolve the matters raised in the public domain.

"It is also in the national interest that CAP's and JAMALCO's critical strategic initiatives continue without interruption," said a spokesperson in a statement.

Through CAP, the Government holds 45 per cent interest in JAMALCO.

According to Jamaica House, across administrations, the Government has been called on to fund CAP because of the unincorporated nature of the JAMALCO joint venture amid unfavourable global market conditions.

"CAP has therefore been a fiscal risk to the Government of Jamaica for a long time and is therefore of macro-critical importance," said the spokesperson in a Jamaica House release.

Jamaica House further said the recent fire at JAMALCO which has led to a complete halt of production threatens the momentum of the country's economic recovery and brings further urgency to these strategic interventions.

"It is important that the transformation of JAMALCO to an incorporated joint venture continues without distraction," said the spokesperson.

Jamaica House says this will allow for the Government's interest in JAMALCO to be monetised and for the containment or elimination of the fiscal risk that the current unincorporated structure has posed to Jamaica over a long period.

It says the Finance Ministry has been providing finance and strategic guidance to the JAMALCO incorporation project, and a number of significant milestones have already been achieved.

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