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Auditor General uncovers weaknesses in NROCC operations

Acting Auditor General Delores Linton Williams and PAC Chairman Mark Golding
 
More worrying information was revealed on Tuesday morning regarding the National Road Operating and Constructing Company (NROCC) which was established to implement the Highway 2000 project.
 
An assessment by the Auditor General's Department uncovered several weaknesses in its operations.
 
Acting Auditor General Delores Linton Williams, outlined the findings at Tuesday morning's sitting of Parliament's Public Accounts Committee (PAC).
 
She announced that NROCC has recorded consistent losses over the six year review period, except for 2011-2012. Additionally, NROCC's solvency position was "significantly weak" although its short term liquid position was "fair." 
 
"NROCC continually had negative equity, indicating that the entity is over-leveraged, accumulating more debt than assets," she said.  
 
NROCC, which was set up in 2002, has over the years racked up billions of dollars in losses.
 
PAC Chairman Mark Golding said he is fully aware of the challenges NROCC faces and the government's commitment to intervene.
 
"It is really for its debt obligations that it is reliant on support from the government which funds the interest payments, and I suppose any principle payments that may have fallen due so far. It's loans, NROCC's borrowings, have been guaranteed by the government of Jamaica," he said, adding that Ministry of Finance "will pursue actions to provide any required financial support for the operations of NROCC in the foreseeable future."


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