JIS News

In response to speculation in a recent media report re expenditure on the home where Transport and Works Minister, Hon. Mike Henry, now resides, the Port Authority of Jamaica (PAJ) has provided the following outline of the facts behind the matter:
A property at 5 Millsborough Crescent, St. Andrew, comprising a dwelling house with helper’s quarters, a pool and related amenities owned by the Jamaica Omnibus Service, was offered for sale to the Port Authority in 2007.
Two valuations were done in October to November of 2007:In the first instance, the National Land Agency valued the property at $65 million;An established private sector valuator, Allison Pitter & Company, placed a value of $60-65 million on the property.
Major work was required on the piping system, which was comprised of asbestos and needed to be replaced. The vendor had the option of doing the work itself, or have the Port Authority do the refurbishing of the property. The vendor opted to have the Port Authority do the work and adjust the purchase price accordingly.
A Sale Agreement was signed for an agreed purchase price of $35 million, subject to -Cabinet Approval and;The Port Authority obtaining vacant possession of the premises.
In addition to replacement of the pipes throughout the premises, which entailed considerable excavation of walls and flooring, as well as refinishing on completion of those works, a retaining wall which was seriously damaged by Tropical Storm Gustav, also had to be repaired.
There was also a need to replace a pump, and a refrigerator and a stove were bought for the house.
The amount of $12.32 million has been spent on the property for:The extensive work relating to the revamping of the piping system,Roof repairsGeneral refurbishing, equipment and appliancesAs well as painting.
An amount of $2.14 million has been spent on the construction of a gabion retaining wall, for a combined expenditure of $14.46 million.
It should be noted that the combined expenditure on the purchase and refurbishing works actually falls below both valuations received for the property of $60 million and $60 million to $65 million.
The property is a solid asset which will no doubt appreciate in value as time goes by.

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