VZCZCXYZ0003
PP RUEHWEB

DE RUEHKG #1040/01 3451902
ZNY CCCCC ZZH
P 101902Z DEC 08
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC PRIORITY 7057
INFO RUCNCOM/EC CARICOM COLLECTIVE PRIORITY
RUEHCV/AMEMBASSY CARACAS PRIORITY 0548
RUEHLO/AMEMBASSY LONDON PRIORITY 0534
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 0098
RUEHOT/AMEMBASSY OTTAWA PRIORITY 2347
RUCNFB/DIRFBI WASHDC PRIORITY
RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY
RHMFISS/HQ USSOUTHCOM J7 MIAMI FL PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHC/DEPT OF AGRICULTURE WASHDC PRIORITY

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 
--------------------- 
 
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