CHARGED: Light bulb scandal brings dark days for former minister

Jamaica's former junior energy minister, Kern Spencer

KINGSTON, Jamaica, February 27, 2008 – Jamaica's former junior energy minister and two others caught up in the Cuban light bulb controversy have been charged with fraud, corruption and money laundering.

Kern Spencer was formally slapped with seven charges late yesterday - three charges of conspiracy to defraud, one corruption charge, and three money laundering offences. He will have to remain in police custody at least until he appears before a magistrate either today or Thursday.

One of his attorneys, Deborah Martin said Mr Spencer's legal team had taken him into police after hearing of the charges laid against him.

The Opposition North East St Elizabeth MP who two weeks ago took leave from parliament and from all positions within the People's National Party (PNP), insists he is innocent and another one of his lawyers, Patrick Atkinson has described the situation as "a witch hunt".

The other two in the spotlight are Mr Spencer's former executive assistant and supervisor at the Petroleum Corporation of Jamaica, Coleen Wright; and Rodney Chin, managing director of Universal Management Company which was set up around the same time the project began and given the contract for the distribution of the bulbs.

If convicted, they face heavy fines and prison time. The Prevention of Corruption Act provides for a fine of up to JA$1 million (US$14,214) and/or imprisonment of a term not exceeding two years, while the Money Laundering Act would see a convict paying that same amount or spending up to five years in prison.

Spencer's arrest brought to a climax days of police interrogation and weeks of investigations into what the current Bruce Golding government charge was a misappropriation of funds in the project which was started under former prime minister Portia Simpson-Miller's PNP administration.

The project was supposed to have seen four million florescent light bulbs, costing approximately $92 million (US$1.3 million) and donated by the Cuban government, distributed to consumers free of cost. But according to Energy Minister, Clive Mullings who brought the matter to national attention, it racked up a JA $276 million (US$3.9 million) bill – JA$114 million (US$1.6 million) already paid and invoices for a further $162 million (US$2.3 million) still outstanding.

However, a hold has been placed on any further payments, with Mr Mullins explaining that they will have to be verified to ensure that any goods or services sought payment for were actually delivered.

It was in October last year that the Energy Minister ordered an internal investigation into the project by the country's Contractor-General Greg Christie and the auditor-general. In his report, Mr Christie pointed to what he said was "a very strong inference of an unlawful criminal conspiracy and corruption", adding that Spencer had undue influence on the project. The auditor-general reported that more than 176,000 of the bulbs were unaccounted for, there was no effective budgetary system and therefore called for a criminal investigation into the matter.

Meantime, Mr Mulling has described the parliamentarian's predicament as a "dark day" in Jamaica's history, but said he was not surprised by the move to charge him.

"That was what we found that led us to call in the auditor general, contractor general and the Fraud Squad," he said.