Security ministry, O'Brien's heading to mediation in used-car row

The Ministry of National Security is moving to activate the mediation clause in the police used-car contact with O'Brien's International Car Sales and Rentals. Permanent Secretary Dianne McIntosh disclosed yesterday that the dealer had delivered a further six cars, bringing the total to 36 of the 200 vehicles to be procured at a cost of $400 million.

"We still have to finalise a date for mediation, and before doing so, we intend also to advise Cabinet that this is the direction that we're now moving (in) and to get approval, or the okay, on the parameters of the process of mediation," McIntosh told Wednesday's sitting of the Public Administration and Appropriations Committee (PAAC).

Ministry officials and PAAC members had a closed meeting to discuss matters that they believed would prejudice any legal proceeding that could arise from the ongoing investigation into the controversial car-purchase deal. McIntosh disclosed that she gave a statement to the police in April.

McIntosh said, "To date also, in addition to the performance bond that we spoke about having received $42 million, I think in January, we have also received from Mayberry $1.8 million, which represents the difference on the advance payment."

Fitz Jackson, PAAC member, raised concerns regarding the purpose of mediation at this point.

"I am of the thought that that is an option that you would choose as against the legal channel, but given that you have already deemed the contractor to have failed and gone as far as collecting the penalty for that failure, which is the performance bond, isn't the mediation irrelevant at this point?"

McIntosh explained that the solicitor general had advised the ministry that mediation was compulsory based on the contract, and if it was unsuccessful, arbitration would be the next step.

brian.walker@gleanerjm.com