Head No. 6500A

and Title: Ministry of Transport, Works and Housing (Capital)

(formerly Ministry of Transport and Works)

P R O P O S A L S

Activity/ Service & Object of Approved Provided Savings or Approved

Project Expenditure Estimates by Law Supplementary Under New Remarks & Object Classification

No. 2011/2012 (Statutory) Estimates Expenditure Estimates

SECOND SUPPLEMENTARY ESTIMATES 2011/2012

$000

PROGRAMME 233 - INFRASTRUCTURES

SUB-PROGRAMME 25 - IMPROVEMENT OF ROADS

AND STRUCTURES

0655 Jamaica Development Infrastructure Programme (JDIP) 750,000.0 271,244.0 1,021,244.0 Provision to meet payment of GOJ 15% counterpart

on additional expenditure of US$21m

Additional

30 Grants and Contributions 271,244.0

FUNCTION 23 - TRANSPORT AND COMMUNICATION SERVICES

SUB-FUNCTION 03 - ROAD TRANSPORT

PROGRAMME 558 - IMPROVEMENT OF PUBLIC TRANSPORT

SUB-PROGRAMME 30 - JAMAICA URBAN TRANSIT COMPANY

1845 Maintenance of Buses 45,000.0 45,000.0 Additional requirement to purchase maintenance parts

and tyres for the JUTC fleet.

Additional

30 Grants and Contributions 45,000.0

GROSS TOTAL 5,625,816.0 333,324.0 1,789.0 5,957,351.0

LESS APPROPRIATIONS-IN-AID 1,500,000.0 1,500,000.0

NET TOTAL HEAD 6500A 4,125,816.0 333,324.0 1,789.0 4,457,351.0

6500A - 234

Head No. 6500A

and Title: Ministry of Transport, Works and Housing (Capital)

(formerly Ministry of Transport and Works)

P R O P O S A L S

Activity/ Service & Object of Approved Provided Savings or Approved

Project Expenditure Estimates by Law Supplementary Under New Remarks & Object Classification

No. 2011/2012 (Statutory) Estimates Expenditure Estimates

SECOND SUPPLEMENTARY ESTIMATES 2011/2012

$000

21

22

oth 316,244.0

add 15,291.0

red

4,457,351.0

6500A - 235

Head No. 6500B

and Title: Ministry of Transport, Works and Housing (formerly Ministry of Transport and Works) $000

(Capital - Multilateral/Bilateral Programmes)

P R O P O S A L S

Activity/ Service & Object of Approved Provided Savings or Approved

Project Expenditure Estimates by Law Supplementary Under New Remarks & Object Classification

No. 2011/2012 (Statutory) Estimates Expenditure Estimates

FUNCTION 09 - HOUSING

PROGRAMME 201 - HOUSING SCHEMES

SUB PROGRAMME 21 - CONSTRUCTION OF HOUSES AND

RELATED INFRASTRUCTURE

9356 Jamaica Economical Housing Project (GOJ/ China EXIM Bank) 318,760.0 318,760.0 Additional requirement due to the transfer of Project from Head

6400A - Ministry of Housing, Environment, Water and Local

Government effective January 1, 2012.

Additional

30 Grants and Contributions 318,760.0

FUNCTION 18 - ROADS

PROGRAMME 005 - DISASTER MANAGEMENT

SUB-PROGRAMME 09 - FLOOD DAMAGE

9241 Flood Damage Rehabilitation Project (CDB) 17,000.0 17,000.0 Additional requirement to settle claim from contractor.

Additional

25 Purchases of Other Goods and Services 17,000.0

9334 Palisadoes Shoreline and Road Project 1,300,475.0 502,200.0 1,802,675.0 Additional requirement due to higher than programmed

expenditure.

Additional

25 Purchases of Other Goods and Services 100,906.0

32 Land and Structures 401,294.0

502,200.0

SUB-PROGRAMME 32 - TROPICAL STORM NICOLE

9369 Natural Disaster Management - Immediate Response Tropical

Storm Nicole (CDB) 70,200.0 5,426.0 64,774.0 Revised requirement due to completion of works. Amount

reallocated to 9241 - Flood Damage Rehabilitation Project

to avert legal action

Reduction

25 Purchases of Other Goods and Services 5,426.0

SECOND SUPPLEMENTARY ESTIMATES 2011/2012

6500B - 236

Page 25 Performance Audit

JUTC: Governance, Procurement and Operations Management July 2020

JUTC’s breach of government guidelines resulted in unauthorized car rental payment totalling $1.2 million.

2.11 We found no instance where the Board was held accountable by the Ministry for breaches

of Government guidelines. For example, the Board breached the Government motor vehicle guidelines when its authorized car rental payments of US$2,400 monthly effective May 20, 2016 for a car utilised by the Acting Managing Director without approval from the MoFPS. This resulted in total charges of $1.2 million for 114 calendar days. The Revised Comprehensive Motor Vehicle Policy for the Public Sector Circular # 8 (2003) requires that, except in the case of emergency, no Ministry, Department or individual shall enter into a contract for the hireage of a motor vehicle, whether through the Hire Fund Scheme, private rental agency or private individual without the specific permission of the Ministry of Finance and Planning. Further, the circular states that each hireage case will be considered on its own merit and that officers found in breach will be liable to surcharge up to the amount of any unauthorised expenditure so incurred. Of note, a similar breach was identified in a previous report of the Ministry of Transport, Works and Housing (MTWH), dated March 6, 2012, against advice of Ministry of Finance and the Public Service (MoFPS) (Case Study 6).

JUTC has unapproved staff capacity that cost an accumulated $1.15 billion

2.12 The MoFPS Service Circular #15 dated July 1, 2016, Revised Guidelines for the Operation of Post in the Public Sector requires that in an effort to achieve public sector efficiencies while maintaining fiscal discipline, several guidelines must be followed, one being that MDAs and Public Bodies should contain employment within their approved establishment. The Ministry of Finance approved 1,652 positions in 2014 for the JUTC, which stood at 1,691 as at July 2019. We found that JUTC did not contain employment within its approved establishment, contrary to the guidelines. We noted that 508 positions, which had not been approved by the Ministry of Finance were being operated by the JUTC, costing the entity $1.15 billion for the period April 2014 to July 2019 (Appendix 3).

2.13 JUTC indicated in its Strategic Plans that an annual staff to bus ratio target of 4.5: 1 was set

in accordance with an international benchmark. However, we saw no details of the nature of the specific international benchmark. Notwithstanding, JUTC exceeded the targeted staff to bus ratio of 4.5:1; and it was not evident that the JUTC leveraged these excess positions for operational gains in terms of effectiveness and efficiency given concerns related to service delivery and financial weakness. (Table 2).

Head No. 6500B

and Title: Ministry of Transport, Works and Housing (formerly Ministry of Transport and Works) $000

(Capital - Multilateral/Bilateral Programmes)

P R O P O S A L S

Activity/ Service & Object of Approved Provided Savings or Approved

Project Expenditure Estimates by Law Supplementary Under New Remarks & Object Classification

No. 2011/2012 (Statutory) Estimates Expenditure Estimates

SECOND SUPPLEMENTARY ESTIMATES 2011/2012

PROGRAMME 225 - ARTERIAL ROADS

SUB-PROGRAMME 20 - MAINTENANCE OF ROADS

AND STRUCTURES

9091 Bogue Road Rehabilitation Project 208,050.0 150,000.0 358,050.0 Additonal requirement to faciltate final measurement and

claims payment to the contractor

Additional

32 Land and Structures 150,000.0

9238 Transportation Infrastructure Rehabilitation Programme (IDB) 1,125,020.0 308,000.0 817,020.0 Revised requirement due to implementation delays which

facilitated the reallocation of funds to Project 9334 -

Palisadoes Shoreline and Road Project

Reduction

25 Purchases of Other Goods and Services 64,680.0

32 Land and Structures 243,320.0

308,000.0

9335 Road Improvement Programme 240,750.0 89,000.0 151,750.0 Revised requirement due to implementation delays which

facilitated the reallocation of funds to Project 9334 -

Palisadoes Shoreline and Road Project

Reduction

25 Purchases of Other Goods and Services 89,000.0

9380 Support For Decentralised Road Maintenance Programme 51,600.0 29,974.0 21,626.0 Revised requirement due to implementation delays which

facilitated the reallocation of funds to Project 9091 - Bogue

Road Rehabilitation Project ($18.4m) and 9241 - Flood

Damage Rehabilitation Project ($11.574m)

Reduction

25 Purchases of Other Goods and Services 29,974.0

SUB-PROGRAMME 21 - CONSTRUCTION AND

IMPROVEMENTS

9031 Northern Jamaica Development Project (OECF/IADB/EU/GOJ) 720,000.0 193,300.0 913,300.0 Additional requirement to meet agreed payment schedule in

settlement of contractors claim on Segment 3 of the Project

Additional

32 Land and Structures 193,300.0

6500B - 237