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The insurance company holding the $42 million performance bond on behalf of O'Brien's International Car Sales and Rental has been given until Friday to return the money to the Ministry of National Security.
This is the second attempt by the Ministry to recover the money after the deal with O'Brien's International turned sour with the car dealership failing to fulfill its obligation to supply used cars for the Jamaica Constabulary Force.
“We made a final demand on the 10th of January, because since that first demand… they (the insurance company) wrote us needing specific information, and so on the 10th of January we made a final demand to deposit the funds in an MNS (Ministry of National Security) account within seven days, and this expires on Friday the 19th of January,” Dianne McIntosh, Permanent Secretary in the Ministry of National Security, told Dr. Wykeham McNeill, Chairman of Parliament’s Public Administration and Appropriations Committee (PACC) at the committee’s sitting on Wednesday morning.
The car company had asked for a waiver on the duties before telling the Government the vehicles would cost more than originally agreed.
The Government has refused to grant the waiver.
The company has been clearing 66 vehicles on the wharf, having missed the December 20 deadline set by the National Security Ministry.
So far the ministry has received only four of the 66 vehicles.
Ms McIntosh also revealed that, during one of the meetings with O'Brien's International, the car company was asked to voluntarily exit the contract, but that this suggestion was rejected.
Ms McIntosh told the committee that there is now a dispute over the return of the $213 million paid to O'Brien's International as part of an advance guarantee.
Mayberry Investments is holding the money on behalf of the supplier.
The National Security Ministry has asked the Solicitor General to pursue this matter on its behalf.
She added that the Ministry has partially terminated the contract with O'Brien's International.
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