National Security Ministry refers O'Brien's Car Sales to police fraud squad

The National Security Ministry has referred O’Brien’s International Car Sales and Rental Limited to the police fraud squad.

In a statement this morning, a ministry spokesperson said several relevant documents have also been handed over to the police.

O'Brien's was contracted to provide 200 used vehicles for the police, at a cost of $400 million but failed to do so as set out in the contract.

The company only delivered 30 cars and twice requested additional time to procure more.

Already, the ministry has recalled the $42-million performance bond that was paid by O'Brien's and it says it is now actively pursuing the return of the $200 million advanced payment guarantee.

"The Ministry in its dealings did all that was required," former National Security Minister Robert Montague is quoted as saying.
IN PHOTO: Robert Montague 

Montague was reassigned to the Transport and Mining Ministry on Monday.

"The contractor failed to perform. The handing over of the matter to the Fraud Squad should be taken seriously by all contractors and should bring to bear the importance of performing on a contract," he said.

Montague said no point was taxpayer's money at risk as it was protected by bonds, one of which has already been received.

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