Security Minister Says Taxes for Cars on Wharf Getting Priority Attention

Minister of National Security, Hon. Robert Montague, says the taxes surrounding the 66 cars for the Jamaica Constabulary Force (JCF), which are on the wharf, is getting priority attention.

The Minister was giving an update on the matter in a Statement to the House of Representatives on Tuesday (December 5).

Mr. Montague was responding to concerns raised in the public after it was revealed at the Public Administration and Appropriations Committee (PAAC) that O’Briens International Car Sales Rental Limited had failed to deliver the 200 pre-owned motor vehicles it was contracted to supply for the JCF.

The Minister explained that on January 25, a contract was signed between the Ministry and O’Briens, stating that O’Briens provided a performance bond and an advance payment guarantee bond as per regulations.

“This is to ensure adherence to the contract by the supplier and that the tax dollars of the Jamaican people are always protected. At no time was or will the Jamaican taxpayer be at risk. Any lack of performance will not place the taxpayer at any risk. At no time will the people of Jamaica suffer any financial loss,” Mr. Montague said.

He noted that in May, the first shipment of 30 vehicles arrived and was delivered on June 2 and June 12, 2017.

He further informed that on July 5, the supplier wrote a letter to the Ministry highlighting the challenges they were experiencing and requested a 90-day extension.

“In July, the first set of 31 vehicles, which form the basis of the 66 vehicles that have now accumulated, started to arrive. On August 25, O’Briens wrote a letter requesting that the General Consumption Tax (GCT) and Special Consumption Tax (SCT) charged on the vehicles be paid,” Mr. Montague said.

“At this point, the Ministry said no and informed him to comply with the terms of the contract. However, the Ministry got advice to look at Clause 16.3 of the said contract. With this in mind, the Ministry did its due diligence in honouring the contract. This was in anticipation of this matter going to court,” he added.

Minister Montague said on October 27, the Security Ministry wrote a letter to the Ministry of Finance and the Public Service requesting that the taxes on the vehicle be waived. He noted that on November 2, the Finance Ministry advised that the request was not supported.

The Security Minister also informed that on November 15, the Ministry wrote to O’Briens and demanded that the vehicles be delivered no later than November 24.

Mr. Montague stated that on November 23, the day before the vehicles were to be delivered by the supplier as demanded by the Ministry, the Parliament summoned the Ministry to appear before the PAAC.