BASSETERRE, St. Kitts – THE St. Kitts and Nevis Chamber of Industry and Commerce (SKNCIC) has established a group from within the private sector to advise its Board members on the Beacon Heights Project’s controversy involving the Social Security Board and Construction Technologies Limited (CONTEC).
In a release dated November 17, 2011, the SKNCIC indicated that it had observed with great concern the public controversy over the Beacon Heights Project undertaken by the Social Security Board, and that its members have expressed serious misgivings about the project.
“The Board of the Chamber has set up a panel comprising members of the private sector, including finance executives, construction and other professionals who have been involved in real estate developments similar to or larger than Beacon Heights, to advise the Board of the Chamber on the matter,” the release read.
The release also addressed the presence of a member of the SKNIC on the Social Security Board of Directors, noting a confidentiality clause restricts the member from divulging any information discussed at that forum.
“The Chamber wishes to make it absolutely clear that while it nominates a member of the Chamber for appointment to the Board of Directors of Social Security, that person, by law does not report to the Chamber on the business conducted and investments made by the Social Security Board.
“That person is bound by the same duty of confidentiality as is every other member of the Social Security Board. The Chamber therefore has no more information on the project than has been made available to the general public.”
The SKNCIC however promises that a release would be made available to the public when the panel reports its findings to the private sector organisation.
The Beacon Heights Project is a Social Security Board’s residential venture involving the construction of 191 homes.
In December 2008, CONTEC was awarded the contract for the construction of these homes, with a projected target of completing the first 10 by June 30, 2011.
However, to date, the construction company has not reached that deadline although, so far, it was allegedly paid some $49M by Social Security.
This information was made public through a leaked memo, purportedly written by a Director, which initiated debates and an outcry on how contributors’ money were being spent as well as calls for the Board’s resignation.
Consequently, CONTEC issued a “Statement of Facts” concerning the issue, and sharply on its heels was one by Social Security Board which addressed the events that led to the cost overruns and delays of the project.
Following those two statements, Deputy Prime Minister Sam Condor, who has responsibility for Social Security, said in an address on ZIZ Radio and TV Stations he was confident that the overruns would not undermine the viability of the Social Security Fund.
“I am satisfied that the structures put in place to manage the project conforms to the highest standards of accountability and good governance,” Minister Condor said.
Minister Condor told the nation that the reports he received suggested that in spite of the many unforeseen challenges encountered, the project does not constitute a loss of people’s money from Social Security.
“Rather,” he added, “that with continued oversight, productivity and management, the possibilities for a state-of-the-art development, yielding tremendous returns is still anticipated.”
Prime Minister Dr. Denzil Douglas also weighed in on the issue, noting that he had viewed the project to be a very profitable one as was envisaged by the Social Security Board at its conceptualisation.
Since its establishment almost 32 years ago, the Social Security Fund has seen tremendous growth.
And as Minister Condor said, “…The Fund has undergone tremendous growth, from $15M in 1978 to its present status of just over $1.2B.”
