OUR and Digicel[edit] In April 2001, Paulwell, who was at the time the Jamaican Minister of Industry, Commerce and Technology, instructed the Jamaican Office of Utilities Regulation (OUR ) to refrain from interfering with the rates charged for fixed to mobile (FTM) calls. Paulwell personally intervened in March 2002 by calling the OUR Director General, Winston Hay, telling him that a fourth telecommunications provider was interested in investing in Jamaica, but would only do so if the FTM rates stayed the same. After Hay refused, Paulwell issued a Direction which restricted the role of the OUR in setting the rates and tariffs on interconnection.[8] It was later reported that Paulwell had only demanded the OUR forgo changing the FTM rates following a complaint from Digicel, after the OUR had directed Digicel to alter its fees.[9] Following a judicial review, it was ruled that Paulwell had no power to issue the Direction to the OUR, and although Digicel successfully appealed at the Supreme Court, that ruling was overturned after the Court of Appeal ruled that Paulwells Direction fell outside his ministerial authority and was invalid, and the OUR did not have to comply with it.[9] Digicels last attempt appeal to the Privy Council in was also unsuccessful: the Privy Council again ruled that Paulwell’s Direction was outside his ministerial powers.[10] Wikileaks[edit] Leaked United States Government cables sent from the US Embassy in Kingston on 19 March 2008 linked Paulwell to a number of scandals. According to one cable, Paulwell has been behind the scenes of numerous imbroglios, including the NetServ scandal, the Cement Fiasco, and the Cuban light bulb scandal. The cable goes on to state that despite all the innuendos, and accusations, Paulwell has never been charged with a crime.[11] Solutrea[edit] Paulwell was at the centre of a telecoms scandal in 2007, after he noted that the sale of Jamaicas fourth cellular licence would go to a company known as Solutrea Jamaica Limited. Solutrea was to pay approximately US$7.5million for the licence. However, when it became unclear whether Solutrea had paid in the full sum, it emerged that Paulwell had issued the licence without all the required public agencies agreeing to the sale. It was further uncovered that Minnette Palmer, an advisor to Paulwell, owned a company which was a shareholder of Solutrea.[12] Cuban light bulb scandal[edit] According to a US diplomatic cable, Paulwell was at the centre of a scandal after it emerged that the Jamaican government had accrued a bill of more the US$3.95 million for the distribution of some four million energy saving fluorescent light bulbs donated by the Government of Cuba to the people of Jamaica. The matter was turned over to the Jamaican Director of Public Prosecutions and the Fraud Squad following allegations that Paulwell, the then-Minister of Energy, Industry and Commerce, and Kern Spencer, then-Minister of State within the Energy Ministry, awarded lucrative contracts for nationwide distribution of the bulbs to two companies which only recently had been incorporated by personal friend or relatives.[13] A government investigation into the affair absolved Paulwell of any wrongdoing. Cement fiasco[edit] In 2006, the Jamaica Labour Party moved to censure Paulwell in Parliament over the defective cement fiasco. The fiasco began when the Caribbean Cement Company (CCC) recalled 500 tonnes of faulty product it had released into the market. Paulwell, at the time the industry and commerce minister, was accused of negligence and gross dereliction of duty, and there were calls from the opposition on him to tender his resignation as Minister.[14] One accusation levelled at Paulwell was that, despite recommendations from the Jamaican Bureau of Standards, he had failed to exercise his Ministerial authority to declare that the production of cement must conform to the Bureaus certification programme. Prior to its privatisation in 2003, the CCC was under a certification programme.[15] He was also accused of providing false information and misleading Parliament.[15] A US cable stated that the fiasco nearly crippled the booming construction industry because of severe shortages.[16] NetServ[edit] According to a US cable, in 2001, Paulwell was at the centre of a controversial loan to NetServ, an IT firm which subsequently collapsed.[17] Paulwell approved a J$180 million loan of public funds to NetServ without matching equity[18] and after a due diligence report raised serious questions about the business conduct of the companys principal, Paul Pereira.[19] NetServ received a J$90 million cheque in 2000 to enable it to carry out start-up operations.[19] In February 2001, just before a second payment was due, JAMPRO, the governments investment promotion agency, sent two reports to Paulwells Ministry and the NIBJ raising concerns about the operations of NetServ and Paul Pereira. However, the Ministrys loan committee still decided to go through with the second payment to the company. Paulwell later admitted that it was an error not to insist that the company put up US$6 million in equity before the National Investment Bank of Jamaica granted it the original loan
Posted on: Wed, 12 Nov 2014 21:19:37 +0000
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