TAJ blames long procurement process for failure to occupy leased properties
Published:Wednesday | March 27, 2024 | 5:42 PM
Tax Administration Jamaica (TAJ) is blaming the Government of Jamaica's lengthy procurement process for its delay in occupying two properties for which it made $371.8 million in lease payments over three years.
A report by the Auditor General's Department (AuGD) on a special audit of TAJ's leasing arrangements found that TAJ had spent $356,802,893 to lease a property in Greenvale, Manchester, but the building has remained unoccupied.
The entity has also been paying $700,000 per month to lease a property in Annotto Bay, St Mary, but that building also remains occupied despite eight months of lease payments.
In a media release on Wednesday afternoon, TAJ explained that the Government's procurement policies require a lease to be in place before commencing the process to procure technical service and to renovate.
It also noted that once the lease is in place then TAJ is liable to make payments.
"The delay in occupancy is attributed to the lengthy procurement process and build out required to make the space suitable for the delivery of tax services, which in the instance of Mandeville had to be restarted and both are still ongoing," TAJ further explained.
TAJ said in the case of the Mandeville property, a competitive bidding process is being pursued and it could take another six months to engage the contractor.
It is projecting that the work will take a minimum of 12 months to complete, with September 2025 being the best estimate for a completion date.
TAJ said the current situation regarding the Annotto Bay Tax Office is that the existing tax office has been closed since the earthquake on November 3, 2023. The 5.6 magnitude earthquake exacerbated the poor condition of the building and a structural engineer's report rendered the building unsafe for occupancy, TAJ added.
"Fortunately, TAJ had already leased the new space and the engagement of the contractor is at the evaluation stage. Based on the timelines the Annotto Bay Tax Office should be open for business at the new location within the second quarter of the 2024/25 fiscal year," TAJ said.
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