The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Cabinet Minister has admitted that the company hired to oversee Urban Renewal’s $3.2 million Small Homes repair project was out of its depth, and that there were minimal qualifications required from contractors.

The Public Accounts Committee’s (PAC) minority report on the programme, while intended to rebut the findings of its FNM majority, actually backed up several of the latter’s key findings when it came to project oversight and contractor quality.

The minority report, presented by Shane Gibson, minister of labour and national insurance, conceded that CCMG Consulting, the quantity surveyor hired to oversee the Small Homes project, found the task “stressful and daunting”.

The document, tabled in the House of Assembly, said the hiring of CCMG and its principal, Lisa Tucker, was approved by Deputy Prime Minister Philip Davis “after the Ministry of Works and Housing advised that they could not assist with providing a quantity surveyor or building inspectors”.

The PAC minority report, produced by governing party members, Mr Gibson and Ryan Pinder, the Elizabeth MP, said “two professional quantity surveyors” were employed by CCMG.

However, the minority duo then conceded: “CCMG found the workload heavier than expected, and the urgency for certificates of completion, stressful and daunting.

“The [Urban Renewal] Commission realised it needed an in-house quantity surveyor as CCMG was not producing as expected, and engaged Randolph John to fulfill that role in August.”

Messrs Gibson and Pinder do not provide a date for Mr John’s hiring, and their report effectively confirms the FNM majority’s findings that Ms Tucker/CCMG were inexperienced and unable to perform the job required.

This, in turn, likely had major implications for the Small Home repairs programme, given that CCMG was tasked with determining the ‘scope of repair works’ on each home and estimating the costs.

It was also supposed to carry out physical site inspections before, and after, the work was performed - in the latter instance, to ensure it had been carried out properly.

Given that CCMG had the critical oversight role, in terms of determining/controlling costs and preventing shoddy workmanship, its failings will likely have jeopardised ‘value for money’ for the Bahamian taxpayer on the $3.2 million spent to repair 312 homes.

The PAC ‘minority’ report also conceded that valid Business Licences, and being current with National Insurance Board (NIB) requirements, were the only qualifications required from contractors hired to perform the repairs.

“The Government’s policy for the Small Home repairs programme, as outlined by the Prime Minister, is to give employment to small local contractors and tradespersons in the inner-city and traditional communities,” the report said.

“In this regard, the requirements for Small Home repairs contracts were limited to those with current Business Licences and current National Insurance contributions.”

The PAC minority report said the Government purchased Contractors’ All-Risk Insurance for the small contractors involved in the project, which may intrigue some, given the failure to do so over the now-notorious BAMSI dormitory fire.

And, in a final riposte to the PAC majority criticisms, the minority said: “The Government did not require the cited qualifications for this programme.”

The majority report, produced by FNM MPs Hubert Chipman, K P Turnquest and Richard Lightbourn, said there was “no evidence” of pre-qualification for contractors engaged by the Small Homes repairs initiative, and “in most cases” where Business Licences were produced, they were for other professions.

“In most cases, the Business License was for business other than construction/handyman or maintenance services. No technical proficiency was demanded to repair homes under this project,” the majority PAC report said.

Gregory Butler, the Urban Renewal Commission’s deputy director, was also said to have admitted that “most contractors” were hired based on recommendations from their MP rather than being ‘best man or woman for the job’.

With proficiency and technical qualifications ‘out the window’, as conceded by Mr Gibson and the PAC ‘minority’, this raises questions as to whether homeowner/resident health and safety may have been compromised by shoddy workmanship. Not to mention exposing the Government, and Bahamian taxpayer, to extra repair costs and other liabilities.

The situation further highlights the need to pass the Contractors Bill, as this would establish a self-regulating licensing system to certify contractors according to their capabilities.

Mr Gibson, meanwhile, also sought to downplay the alleged ‘conflict of interest’ involving the now-Bahamas ambassador to China, Paul ‘Andy’ Gomez, saying this had been rendered “moot” by his diplomatic appointment.

This was in response to the PAC majority report raising concerns about Mr Gomez being a member of the Urban Renewal Foundation council, while also being managing partner of the Foundation’s external auditor, the Grant Thornton (Bahamas) accounting firm.

Mr Gibson argued that it was “the considered opinion” that the Foundation, which solicits donations to finance Urban Renewal’s work, did not come under the Financial Administration and Audit Act.

As a result, it did not need to be scrutinised by the Auditor General, but the Minister agreed this needed to be backed up by “a legal opinion”.

As to Mr Gomez, the PAC minority report said: “Urban Renewal Foundation council member, Paul ‘Andy’ Gomez, has given his company’s services gratis [free] for the past two years.

“Mr Gomez has accepted a Ministry of Foreign Affairs posting abroad [as ambassador to China]. Therefore, the perception of conflict of interest on behalf of his company, Grant Thornton (Bahamas), is now moot.”