The National Insurance Property Development Co Ltd (Nipdec) is seeking to construct carparks in Arima, San Fernando and Chaguanas. Its income at the end of the fiscal year in June was $59.9 million, Nipdec chairman Hamlyn Jailal told a joint select committee (JSC) yesterday.
Opposition Senator Faris Al-Rawi posed more than five questions to Jailal, asking for the answers to be provided in writing, including one on the status of the supply of drugs to the Ministry of Health. Nipdec has the $2 million annual contract to supply drugs for the regional health authorities (RHAs). Before Nipdec appeared before the committee, there was some legal wrangling over whether it was obliged to do so, which was also raised yesterday.
Jailal said Nipdec had informed the committee by letter dated September 30, 2014, that it did not fall under the jurisdiction of Section 66(a) of the Constitution to appear before the JSC, according to advice from Pamela Elder, SC. “Nipdec is not owned by the State, Nipdec is not controlled by the State,” he told the JSC.
In addition, Jailal said the Integrity Commission had told Nipdec by letter dated October 20, 2013 that its board members were not “persons in public life” under the Integrity in Public Life Act and Nipdec was not a state enterprise under the law.
Jailal said the company was not the recipient of any government funding, subventions, subsidies and or grants from the State and its operations were financed “solely by revenues generated by our procurement and project-management services, commercial, real estate and other services.” He said it was a fully-owned subsidiary of the National Insurance Board. He went on to answer questions from the committee members.
Mahabir asked Jailal to explain the reason for Nipdec’s existence and he said the late prime minister Dr Eric Williams would be the best person to answer, as it was established under him in 1977. Jailal said the company would have been established then because the government wanted a company to be involved in procurement and project management. The meeting was chaired by Independent Senator Dr Dhanayshar Mahabir at the J Hamilton Maurice Room at Parliament, Waterfront Centre, Port-of-Spain.
JSC wanted to know
The meeting was held to look at Nipdec’s:
• tendering process, tendering rules and procedures
• pre-qualifying procedures for scrutinising contractors
• structures to ensure value for money in procurement
• manpower resources, based on the scope of its projects
• relationship with other bodies of the State
• challenges faced by Nipdec