The Community-based Environmental Protection and Enhancement Programme (Cepep) yesterday said it planned to remove contractors who have spent more than three years in the programme. The plan will affect 90 per cent of its contractors who, according to the company, have been operating in the system for over five years.
The company made the announcement in a media statement published yesterday, in which it noted the move had become necessary because the programme had “deviated from the principles of transparency and uprightness” over the years.
Up to last night, Cepep chairman Trevor Lynch had not responded to a call or text message querying how many people would be affected, if the contracts would be reviewed and how many jobs would be lost in what appears a streamlining exercise.
Calls to Minister of Public Utilities Ancil Antoine, under whose purview Cepep falls, also went unanswered. Cepep was conceptualised as an incubator facility affording contractors the opportunity to learn and grow their businesses over a three-year period.
It was felt that upon graduating from the programme, the contractor would be able to offer services and compete successfully in the private sector without Government support.
But in its statement yesterday, Cepep said: “Currently, 90 per cent of the existing contractors have been engaged by the programme for more than five years. Most of this group of contractors have six teams of ten persons per team and have earned in that period over $3,500,000 (per contractor) in management fees.”
The statement noted that some contractors had signed new contracts in the weeks leading up to the last general election on September 7, 2015 and in some cases on the day of the election.
It was also noted that contractors engaged in the programme were not paying health surcharge, NIS, VAT or Green Fund Levy to the State on behalf of their employees, as required by their contracts with Cepep and by law.
But rather than discipline the contractors, Cepep said the former board established a point system to grade contractors as “compliant” or “non-compliant.” It said in spite of finding only a handful of compliant contractors the board “took no action against the contractors, who misappropriated or embezzled as much as $500,000 in some cases.”
Cepep also noted that all contractors’ employees were paid directly by Cepep and not the contractors. The company is responsible for over 12,000 staff, contractors and contractors’ employees, it said.
While Cepep assured that its overall level of employment would be maintained, it said the intent of the programme was to provide short-term income support for the employees of the contractors while upgrading their skills through training. It said the company was currently in the process of realigning the programme with its core objective as a business incubator.
The company said staff whose jobs were made redundant under the emerging organisational structure would be screened for suitability in other areas of the company and subject to their acceptance, would be deployed to those suitable positions.
Moonilal: Diversion tactic
In response to Cepep’s statement, former housing minister Roodal Moonilal, in a press release, insisted that it was seeking to divert attention from plans to dismiss 12,000 workers and contractors.
Asked how many contractors awarded contracts for more than five years were likely to be released by Cepep, Moonilal estimated the figure to be 150 based on figures he had. He said that figure meant 10,000 employees could sacked.
“The stark reality is that the company is moving to terminate contractors and workers without justification and appropriate public explanation.
“That disturbing and irrefutable fact is compounded by grossly irregular hiring practices and summary removal of several staff employees.”