Hill

Officials of the Ministry of Agriculture and Corporate Strategies Limited (CSL), the firm contracted to spearhead the sugar divestment efforts, are defending a near $2-million-a-month bill being forked out by the Government each month since July of last year for services rendered in the effort to privatise five factories.

According to figures contained in documents obtained by The Gleaner, the Aubyn Hill-led CSL is being paid $1.833 million with other expenses, including remuneration for driver and other motor vehicle-related expenses, pushing the bill to just under the $2-million mark.

Over a 15-month period, the agriculture ministry has paid approximately $22 million to CSL.

Donovan Stanberry, permanent secretary in the Ministry of Agriculture, also corroborated the approximately $2-million-per-month bill, but contended that it was money well spent.

"I think the figure is near to $2 million per month. I want to put that into context - the contract is a contract that was duly approved by the Ministry of Finance and the Cabinet," he said.

Persevering for divestment

Documents reaching The Gleaner confirmed Stanberry's comments.

Hill, in particular, was mandated to head the negotiating team to evaluate tender proposals from eight companies vying to purchase government-owned sugar assets.

The document suggested that although the contractual period had expired, it had been extended at least 10 times in the hope that the companies would be divested before the arrangements were severed.

Hill also argued that the $2 million per month represented value for money.

He cited extensive work that had to be done in the privatisation efforts in order to meet potential buyers.

No conflict of interest

Hill suggested that the figure was nowhere near the amount being spent on the move to privatise Air Jamaica.

Stanberry agreed.

"It is nowhere near what the Government pays in respect to executing the same functions in relation to the Air Jamaicas of this world and the other entities that we divest from time to time," he said.

Stanberry said he saw no conflict of interest in the appointment of Hill as chairman of Sugar Company of Jamaica (SCJ) Holdings Limited.

The question was raised because Hill's company was leading the negotiations in the Government's bid to divest the assets of the SCJ, which are held by SCJ Holdings.

Stanberry told The Gleaner that Hill was not being paid for his role as chairman of SCJ Holdings because it was not an executive position.