TAJ to explain nearly $1 billion retrofitting plan
Published:Wednesday | May 29, 2024 | 11:44 AM
Tax Administration Jamaica (TAJ) is to clarify the nearly $1 billion it plans to spend to retrofit a building in Mandeville that it leased more than three years ago but has not yet occupied.
Information Minister Dr Dana Morris-Dixon gave the update at Wednesday morning’s post-Cabinet press briefing after a Gleaner query on whether Cabinet was comfortable with the spend.
“I have been in contact with the minister of finance and the TAJ team. They have noted that they will be putting out a press release that will give more details in terms of the details of that procurement activity,” said Senator Morris Dixon.
There have been public concerns over the proposed spending.
TAJ Commissioner General Ainsley Powell said procurement issues were causing the delay in occupying the building.
In a report by the Auditor General’s Department, which was tabled in Parliament in March, it was highlighted that TAJ spent $357 million up to August 2023 to lease the Mandeville property.
On Tuesday, Parliament’s Public Accounts Committee (PAC) was informed that the TAJ has spent an additional $80 million to date for leasing the building. It now moves the total sum for leasing an unoccupied property to $451 million in just over three years.
Further, Powel said it was determined it would be more costly for the Government to construct its own building, than to spend the estimated $1.5 billion – and climbing – cost to lease and retrofit the building.
Powell indicated that his agency had explored other options but came to that conclusion.
- Kimone Francis
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