JAMAICA: PRIME MINISTER BRUCE GOLDING'S GOVERNMENT

C O N F I D E N T I A L KINGSTON 001040

SIPDIS

DEPT FOR WHA/CAR (ANDRE CADIEUX)
INR/IAA (PETER KNIGHT)
TREASURY FOR IA/WH (ERIN NEPHEW)
PASS TO CENTRAL AMERICAN CARIBBEAN BASIN COLLECTIVE

E.O. 12958: DECL: 12/10/2018
TAGS: PREL PGOV PINR SNAR EFIN ASEC KCOR CARICOM
IBRD, IDB, FBI, JM, XL
SUBJECT: JAMAICA: PRIME MINISTER BRUCE GOLDING'S GOVERNMENT
UNDER SIEGE; POSSIBLE CABINET RESHUFFLE?

REF: A. 07 KINGSTON 1336 (042044Z SEP 07)(NOTAL)

B. 07 KINGSTON 1462 (251614Z SEP 07)(NOTAL)

C. 07 KINGSTON 1629 (021501Z NOV 07)(NOTAL)

D. 07 KINGSTON 1681 (19200Z NOV 07)(NOTAL)

E. KINGSTON 571 (251519Z JUN 08)(NOTAL)

F. KINGSTON 596 (031845Z JUL 08)(NOTAL)

G. KINGSTON 809 (161457Z SEP 08)(NOTAL)

H. KINGSTON 972 (171906Z NOV 08)(NOTAL)

I. KINGSTON 1016 (011931Z DEC 08)(NOTAL)

J. KINGSTON 837 (222015Z SEP 08)(NOTAL)

K. KINGSTON 707 (052139Z AUG 08)(NOTAL)

Classified By: CDA JAMES T. HEG, Reasons 1.5 (B) AND (D)

Summary and Analysis
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1.(C) Besieged by an alarming wave of violent crime,
resurgent inflation, pressure on the Jamaican dollar, high
unemployment, heavy damage to the agriculture sector from
hurricanes Dean and Gustav, and a recent downgrade of the
country's financial rating, until recently Prime Minister
(PM) Bruce Golding's Jamaica Labour Party (JLP) at least
could claim progress in the area of good governance and
transparency. Unfortunately, recent events have undermined
this claim, leading many to wonder whether the current
government is any cleaner than its predecessor.

2.(C) Speculation is rife regarding a possible cabinet
reshuffle by Golding. However, the JLP's razor-thin 32-28
parliamentary majority limits his options; any reshuffle
would have to avoid antagonizing the current cabinet, or
indeed any sitting JLP members of parliament. Nor, with the
country reeling from crime and economic weakness, can Golding
risk calling a snap general election in hopes of winning a
stronger majority: Opposition Leader and former PM Portia
Simpson Miller (PSM),a charismatic populist recently
reelected as Chairman of the People's National Party (PNP),
might well be returned to power.
End Summary and Analysis.

Alleged Corruption at State-Owned Bus Company
--------------

3.(SBU) The Office of the Contractor General (OCG),headed
by Greg Christie, recently completed an investigation of
alleged cronyism and breaches of procurement guidelines at
the Jamaica Urban Transit Company, Ltd. (JUTC),which
operates the country's notoriously inefficient state-owned
bus system. Christie's 104-page report, delivered to
Minister of Transport and Works Mike Henry, reportedly:

-- paints a damning picture of rampant corruption dating back
several years;

-- accuses JUTC Acting Managing Director Bindley Sangster of
criminal offenses;

-- strongly criticizes the leadership of the late Douglas
Chambers, who served pro bono publicum as JUTC Chairman,
ostensibly to clean up the organization, until he was
assassinated gangland-style on June 27, apparently by workers
facing layoffs (reftel F). The OCG's investigation had been
launched following Chambers' murder.

Possible Cabinet Reshuffle?
--------------

4.(C) In recent days, Sangster, together with JUTC
procurement committee members Dennis Chung and Raphael
Barrett, have resigned from the JUTC Board ) thus lending
credence to Christie's allegations. Chambers had been widely
perceived as one of a handful of crusading figures installed
in key positions (the new Police Commissioner, Customs
Director, Finance Minister) by Golding in an effort to clean
up Jamaica's corrupt institutions following 17 years of rule

by the opposition PNP. PNP Chairman Robert Pickersgill
publicly has called on Golding to replace Minister Henry, who
thus far has had little comment. Speculation abounds
regarding a possible cabinet reshuffle by Golding. He is
said for example to be displeased with National Security
Minister MacMillan (who has yet to get a grip on the soaring
crime problem) and Energy Minister Mullings. However, in
post's estimate, the JLP's razor-thin 32-28 parliamentary
majority limits his options; any reshuffle would have to
avoid antagonizing the current cabinet, or indeed any sitting
JLP members of parliament.

Fertilizer Imbroglio
--------------

5.(SBU) In a separate development, Agriculture Minister Dr.
Chris Tufton has announced a full-scale investigation into
the circumstances surrounding the purchase of 6,000 tons of
fertilizer by Jamaica Cane Product Sales (JCPS) from the
Indian company Shreeji Impex Corp. Under the terms of a deal
brokered in March, JCPS deposited USD 1.4 million with agents
of Shreeji Impex in New York. However, the shipment of
fertilizer, scheduled to arrive in April/May, was never
delivered. JCPS reportedly has recovered only USD 250,000
from the New York-based agents, and thus has lost USD 1.15
million at a time when Jamaica's vital agriculture sector has
been devastated by hurricanes Dean and Gustav and as the
Government faces extreme budgetary pressures (reftel I).

Ammunition Purchase from Unlicensed Arms Dealer
-------------- --

6.(SBU) On another front, local media have reported that the
Government has been unable to recover any of the USD 81,100
expended to purchase ammunition from unlicensed arms broker
Lance Brooks, the owner of Florida-based Taylor and
Associates, whose bank accounts reportedly have been frozen
by U.S. authorities (reftel G); however, post understands
that in fact the FBI has recovered, and will return to the
Government of Jamaica (GoJ),at least USD 20,000. In a
letter to the PM, Commissioner of Police Hardley Lewin
reportedly has asserted that "every effort is being made to
recover the money paid and, from the lessons learnt, controls
instituted to prevent a recurrence of this nature."

Gang-related Gunfight at Annual JLP Party Conference
-------------- --------------

7.(C) At the JLP's annual conference held at the national
arena on November 16, before a crowd of thousands, as Finance
Minister Audley Shaw accused the previous PNP government of
gross mismanagement, gunfire erupted immediately behind the
stage and gang-related mayhem ensued, leaving one dead and
two wounded (reftel H). This incident served as a stark
reminder of the historical ties of both major political
parties to Jamaica's powerful criminal elements, whose
"dons" control entire garrison districts in Kingston, Spanish
Town, and Montego Bay. While the Golding Government may have
made progress in cleaning up Customs, replaced a disreputable
Commissioner of Police, and indicted a senior police
superintendent on corruption charges (reftels C,D,K),the JLP
cannot claim to have severed its ties to organized crime.


Minister's Residence Searched in U.K. Investigation
-------------- --------------

8.(C) Finally, an ongoing international investigation by the
British Serious Fraud Office (SFO) led the Jamaican Serious
and Organized Crime Branch to search the home of the JLP
Member of Parliament (MP) for East Rural St. Andrew and
Minister of State in the Ministry of Transport and Works
Joseph Hibbert on the morning of December 9. The police
reportedly sought evidence relevant to the dealings of an
unnamed U.K.-based firm in Jamaica some 15 years ago, when
Hibbert served as a civil engineer with the Ministry of

Housing and Works in the previous JLP Government of former PM
Edward Seaga. Hibbert's attorney has stoutly denied any
wrongdoing by his client, and a JLP press release maintains
there has been no impropriety on Hibbert's part, and that the
case will be resolved in the U.K. courts. However, post's
sources indicate that he may have continued to receive
payments after having relinquished his position as a civil
engineer.
Johnson