PM steps in to resolve controversy, allegations now boiling at CAP | Loop Jamaica

The content originally appeared on: Jamaica News

Prime Minister Andrew Holness has ordered Transport and Mining Minister, Robert Montague, to furnish a report on issues of instability that have arisen in relation to Clarendon Alumina Partners (CAP), which owns the Government’s 45 per cent stake in Jamalco.

In describing the reports and allegations that have emerged about CAP, including controversy over a review of a particular service contract, as being “troubling”, Holness said he has also directed Montague to indicate to the board of CAP “that the contract in question should be put on hold until the Cabinet has had a chance to review the minister’s report.”

Reports indicate that amid the controversy, CAP’s Chairman, Norman Reid, has resigned, and there are indications of sharply divided positions among the remaining board members on the issues that are now at play.

In a release on Thursday, Holness said Jamalco is a major strategic asset of the Government of Jamaica, and the level of public resources invested in CAP is of “macro-critical importance”.

Below is the full text of the prime minister’s statement on the matter.

“Clarendon Alumina Partners (CAP), which owns the Government’s 45 per cent stake in Jamalco, is a major strategic asset of the Government of Jamaica.

“Given the level of public resources invested in CAP, it is of macro-critical importance.

“Currently, the entity has been engaged in a multi-year project to incorporate Jamalco to better secure and manage its value.

“Reports and allegations in the press regarding CAP are troubling. Instability in its governance is inimical to the national interest, given the significance of the Jamalco incorporation.

“I have therefore asked Minister Montague to provide me with a report on the situation at CAP, particularly on the incorporation process and the contract in question.

“I have also directed the minister to indicate to the board of CAP that the contract in question should be put on hold until the Cabinet has had a chance to review the minister’s report.”