Much ado about nothing - Part II

Howard Hamilton - HORSE SENSE

As expected, there was some caustic criticism of the contents of Part I of this article, which was published on February 13.

This is not surprising since there are those who want to maintain the status quo from which they derive some level of false security. The filth and indiscipline of the stable area, the lack of efficient security, the total absence of any integrity in the industry are of little interest to this minority, whose voices are the loudest. Those who take pleasure in convincing the 'masses' that they can move mountains and have already removed four sets of directors.

I say 'a pox on those', and the quicker our industry is structured to weed them out then the better off we will all be. Those who keep running to the Government with half-truths and cooked-up stories create more mischief than benefits for the industry. It is time that we all learn that: GOVERNMENT IS NOT THE SOLUTION TO OUR PROBLEMS ... GOVERNMENT IS THE PROBLEM.

This week we continue looking at the contractor general's report, and in particular some of the recommendations embodied therein.

On page 166 it is stated that: "CTL should prepare a detailed Request for Proposal (RFP) and/or tender document, when any form of procurement is being undertaken. The RFP and/or tender document must, at a minimum, make provision for:

(a) Details of the scope of work for this project.

(b) Standard format for technical and financial proposals.

(c) Details of the selection procedure to be followed.

(d) Deadline for submission.

(e) The method by which the proposal shall be submitted.

(f) If not included in the TOR or in the draft contract, details of the services, facilities, equipment, and staff to be provided by CTL.

(g) Any conditions for subcontracting a part of the assignment.

(h) The procedure for handling clarifications.

(i) Location for the deliverables.

(j) Tender security (if required).

(k) Evaluation methodology.

(l) Selection criteria."

See page 166 of report.

Not appropriate

These recommendations are not appropriate to the dynamics of simulcast racing and show a lack of understanding of the operation. Decisions on the purchase of betting rights on overseas racing are based on availability, customer acceptance and price. This is not a service that one puts out to tender.

Certain tracks negotiate directly while some prefer to deal through an agent. The development of simulcast racing by CTL has been the designated responsibility of an executive member of its management team, Donald Tankoy, from its inception. He has always operated with a deep sense of commitment and loyalty to his company and its customers.

I worked with Tankoy in my capacity as chairman of Racing Promotions Ltd between 1983 and 1985 and never had occasion to question his honesty and integrity. He has single-handedly been responsible for building the simulcast business of CTL to the position where it now contributes more than 50 per cent of the total revenue of CTL.

In addition, as the executive manager in charge of the off-track operations, he has been singularly responsible for growing that business to the point where it now contributes 80 per cent of the total sales of CTL.

On page 151, Section 8, the OCG concludes: "By all accounts, most overseas simulcast contracts were signed by Donald Tankoy, CTL's former executive manager, Off-Track Betting (OTB) and, up until 2008 June 26, CTL board approval was not required for the signing of the simulcast contracts.

"In addition, the OCG has concluded that this constitutes a breach, inter alia, of the Financial Administration and Audit Act since Tankoy, who signed several of CTL's contracts, was neither the accounting and/or accountable officer for CTL."

I find this conclusion remarkable. At all times Tankoy was the executive manager with the full responsibility for negotiating simulcast contracts. The aspersions and comments concerning Tankoy in the report are unwarranted and unfortunate.

The analysis by the OCG of payments to the suppliers of simulcast satellite signals are founded on a total misunderstanding of what simulcast operations are all about.

On pages 98-100, details of their analysis make interesting reading. The report identifies that CTL has paid J$166 million of public funds to the suppliers of simulcast satellite signals for the period 2006 January to 2008 July, all in violation of applicable government procurement procedures. This, of course, is arrant nonsense. This was not public funds but money wagered by the punters to whom the signals are directed.

The saga continues. It is of interest to note that the Government has seen it prudent to move certain government entities from the purview of the OCG. Those who read this report with an open mind can see why.

The important participants in the racing industry need to make the strong decisions that are necessary to save this industry. More and more it becomes evident that GOVERNMENT IS NOT THE SOLUTION. IT IS THE PROBLEM.

Howard L. Hamilton, CD, JP, is a former chairman of Caymanas Track Limited. He is the current president of Thoroughbred Owners and Breeders' Association. He can be contacted at howham@cwjamaica.com.