NWC head Mark Barnett in 'conflict of interest' over $900,000 bill he disputes - IC
Published:Wednesday | October 11, 2023 | 7:54 PM
The Integrity Commission has revealed that National Water Commission (NWC) president Mark Barnett is disputing a bill of approximately $900,000 that he allegedly owes for sewage and water supply to his upscale apartment complex in St Andrew.
IC Director of Investigation Kevon Stephenson said up to July 13, 2023, a sum of $879,163 was outstanding in the name of Barnett and his wife Annette, for services to their multifamily development at 11 Charlemont Drive.
Some $211,320 is due for the supply of wastewater services, with the balance, $667,843 for the provision of water.
Stephenson said the situation has placed Barnett in an "actual conflict of interest" given his role as the chief accounting officer for the NWC and his status as property owner.
The details are contained in a scathing 90-page investigation report released Tuesday in which the commission recommended that the Kingston and St Andrew Municipal Corporation (KSAMC) “take action” against Barnett, his wife Annette, and developer Phillip Smith for “breaching” the building permit for the complex, and also against senior officers Xavier Chevannes and David Clarke for alleged failures to execute their functions.
Stephenson produced correspondence between the NWC and Barnett over the outstanding fees.
One of the emails to the Barnetts was from Ian Bennett, the NWC's assistant vice-president, system planning and water resource development.
Bennett, in an email dated November 11, 2021, said the NWC wished to advise them of the outstanding fees for water and sewage.
Mark Barnett responded in a letter dated December 3, 2021 that was addressed to Garth Jackson, vice president, engineering and capital projects.
"We were surprised to receive such communication, especially in relation to developer's fee for wastewater, considering that although approval was granted that the development can connect to the central sewers, same was not immediately available in the vicinity, hence the collaboration between NWC and the developers," he said.
Barnett added: "The construction works were undertaken by the developers at their cost of some $18m. This asset, NWC has already taken over since sewer [connection] has already [been] made to [a] recent development at [a property on Charlemont Drive]."
It was on that basis that Barnett proposed that the fee for wastewater be removed.
Barnett said the amount for water supply "should be offset against the capital invested as stated above. Furthermore, NWC has gained an asset without investing in the full cost of same as well as an increase in its sewered customer base".
The NWC has said the sewer main was approved in 2020, installed by a developer in October 2021 and that it was not unusual for it to be done by the developer who then hands over control to the state agency. At the time when Barnett's development was approved the NWC's waste water pipeline on Charlemont Drive did not reach the location of the Barnett's development.
The situation with the outstanding bills has troubled the Integrity Commission's Director of Investigation who said Barnett is in a situation in which "he must choose between his personal interest as owner/developer and the interest of the NWC, as that entity's accounting officer... in the former capacity, Barnett does not wish to pay the outstanding fees and in the latter capacity, NWC requires its fees to be paid over".
Stephenson said: "As the entity's ultimate decision maker, at the executive level, Barnett is duty bound to collect or to cause to be collected, the referenced fees. The question which therefore arises is, since he is clearly conflicted, whose interest will prevail? The NWC's or his own? ...he has clearly chosen his private interest over that of the NWC."
The Integrity Commission has argued that Barnett's “moral authority” to lead the NWC has been brought into question based on his “egregious” actions in the building of his apartment complex in alleged violation of permits.
Stephenson said he confirmed that between 2019 and 2020, the KSAMC and the National Environment and Planning Agency (NEPA) issued building, planning and environmental permits around to Barnett and his wife for the construction of two three-storey blocks consisting of 12 one-bedroom units.
However, he concluded that the erected development consists of six two-bedroom units and six three-bedroom units, “in breach of the permits issued”.
The project, which is listed as complete on the Real Estate Board's website, was undertaken under a joint venture involving the Barnetts and Phillip Smith, the developer.
The NWC is an agency of the Ministry of Economic Growth and Job Creation, which is headed by Prime Minister Andrew Holness.
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