Jamaica Gleaner
Published: Thursday | April 23, 2009
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Contractor general defends report on Air Jamaica's Heathrow sale

Christie

CONTRACTOR GENERAL Greg Christie is refusing to back down from statements he made in his 196-page report of investigation into the divestment of Air Jamaica's London Heathrow slots, despite sharp criticisms from two major players in the controversial deal.

The Office of the Contractor General's (OCG) findings, which were released earlier this month, called into question the roles of former finance minister Dr Omar Davies and former chairman of the board of directors of the airline O.K. Melhado, in the sale of the prime slots, which was agreed on in May 2007.

"The OCG wishes to formally advise the media and the general public that it stands firmly and unconditionally behind each and every word of its findings, conclusions, recommendations and referrals that are set out in the report of investigation," Christie said Tuesday in a press release.

Ivestment

Davies and O.K. Melhado have come out emphatically against the findings of the OCG, which suggested that they acted improperly in the divestment of the airline's slot at Heathrow.

Christie said that the OCG had an "abundance of unimpeachable documentary and sworn written evidence" to fully support and defend its stated positions on the matter.

He said the OCG had taken note of statements by Davies and Melhado over the last two weeks in the print and electronic media.

In a Sunday Gleaner article, Melhado said he rejected the OCG's claims that information he and former director of the airline, Noel Sloley, provided, in answer to the OCG's questions, was in any way false.

Dr Davies, at a recent press conference, was unrepentant about his role in the sale of the slots and argued that with the benefit of hindsight, he would not have acted differently. "I did what was correct in the nation's interest," he said at the time.

At the same time, Christie is vowing to publish documents relating to the probe.

The OCG says it will release three letters, dated April 23, 2007, written by Dr Davies to Virgin Airways, British Airways and O.K. Melhado.

"These letters, it should be noted, were the pivotal documents which influenced or directed the divestment of the Heathrow slots to Virgin Airways," Christie said.

He argued that both Dr Davies and Melhado, "quite curiously", failed to disclose the existence of the letters, together with other pertinent facts of which they were well aware, in the sworn written statements they gave to the OCG.

The OCG, in its report, had stated that the process of evaluation, selection and approval of the Virgin Atlantic proposal, in respect of the sale of the Air Jamaica Limited Heathrow slots, lacked transparency, fairness and impartiality.


Melhado, Davies

Improper and irregular

Charged with the responsibility of monitoring government contracts, the OCG concluded that the Virgin Atlantic proposal was not based on merit and was improper and irregular, and consequently, unlawful.

The Heathrow slots were sold to Virgin Atlantic for £5.1 million (US$10.2 million).

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