Not certified

Elhydro Limited, the company awarded a $1.4-billion contract by the Jamaican Government to import 110 used school buses, is not certified to do so, the Trade Board has confirmed.

The Trade Board, which operates under the Aubyn Hill-led Ministry of Industry, Investment and Commerce, also confirmed that the buses were shipped without pre-shipment inspection certificates (PSIC), as required by the 2014 Motor Vehicle Import Policy.

The confirmations follow the leaking of correspondence between the Ministry of Science, Energy, Telecommunications and Transport (MSETT) and the Trade Board concerning the facilitation of Elhydro, a fuel manufacturing company, to import the buses.

Neither the ministry nor the Trade Board has denied the authenticity of the leaked documents, which have intensified scrutiny of the procurement process. The Trade Board is responsible for regulating import/export licences, certifying exports, and ensuring compliance with international trade rules.

The Sunday Gleaner asked the Trade Board to confirm whether Elhydro is certified as a dealer for new or used motor vehicles and, if so, when the current certification was issued. In response, the agency said the company is not certified as a dealer of either new or used motor vehicles.

“Elhydro was issued an import licence to import three motor vehicles as an importation by a company in keeping with the guidelines set out in the Motor Vehicle Import Policy, 2014,” the Trade Board said.

Under the 2014 policy, companies are only allowed to import three vehicles, no older than 10 years, over a three-year period. The policy also includes a 12-month restrictive clause prohibiting the unauthorised sale, transfer, or pledging of such vehicles.

Any requirement for more than three units within the specified timeframe must be met through purchases from local certified dealers.

In a letter dated May 27, 2025, and addressed to MSETT Minister Daryl Vaz, Trade Board Chairman Danville Walker stated that approval had been granted for Elhydro to import the 110 buses on behalf of the ministry for the Rural School Bus Transportation Programme. Walker was responding to a letter from Vaz dated May 10.

“Please note that all necessary administrative support has been extended to Elhydro to facilitate their registration via the Jamaica Single Window for Trade Platform (JSWiFT), to ensure a smooth application process for import permits for the buses,” Walker’s letter read.

Additional units expected

At a news conference last week, Vaz revealed that more than 26 of the buses had already arrived in the country, with additional units expected later this month.

“So, in essence, all 110 buses will be here by the end of July,” said Vaz, noting that this marks phase one of the programme. Phase two will involve the importation of another 200 to 300 buses.

He said a dedicated team from the Jamaica Urban Transit Company (JUTC) inspected the buses in the United States to ensure their safety, reliability, comfort, and maintenance cost efficiency.

“So, let me make that clear: we did not buy buses based on pictures,” said Vaz. “We sent a team from the JUTC, along with the supplier, to go and inspect and select the buses that we deemed and [thought] suitable for Jamaica.”

The Sunday Gleaner also asked the Trade Board to confirm whether preshipment inspection certificates (PSICs) were received for each bus imported under the Government’s Rural School Bus Transportation Programme.

In response, the Trade Board reiterated that PSICs are required under the 2014 policy but disclosed that a waiver was granted for Elhydro’s importation.

Since February 1, 2018, vehicles shipped from designated countries must undergo pre-shipment inspection before an import permit is issued. As of June 1, 2019, the process also includes sanitisation to protect Jamaica’s biosecurity.

The board explained that the waiver was granted by the Motor Vehicle Import Committee (MVIC) under “compelling circumstances”.

110 buses without the accompanying PSI certificates

According to the board: “ ... The MVIC considered the request of the Ministry of Science, Energy, Telecommunication and Transport for the importation of 110 buses without the accompanying PSI certificates,” the Trade Board said. “After considering the compelling circumstances, the MVIC recommended that the import permit/licence should be granted.”

The board said the waiver was allowed because the buses were intended for use under the Rural School Bus Transportation Programme. Additionally, the Island Traffic Authority (ITA) was expected to inspect and sanitise the buses upon arrival in Jamaica to ensure roadworthiness and safety.

“This was a Government of Jamaica initiative [and] time was of the essence to ensure that the buses would be landed, inspected by ITA and ready for use by the new school term in September, 2025,” the board said.

It said the requirement of a PSIC is to ensure that imported vehicles are safe, roadworthy and fit for purpose and the ITA has the skill set and competence to inspect for these criteria.

“As a cost saving measure, instead of the Government of Jamaica paying for an inspection of 110 buses in order to obtain 110 PSI Certificates, the inspection cost would be significantly reduced with same results when undertaken by ITA,” the board added.

Local motor vehicle dealers are questioning the decision, disclosed Lynvale Hamilton, president of the Jamaica Used Car Dealers Association.

“The dealers are wondering why. They are wondering why there were no pre-shipment inspections given the age of the vehicles. They find it quite strange,” Hamilton told The Sunday Gleaner on Friday, declining to comment further.

Vaz has said the average age of the buses is 10 years, compared to 14 years for those in the public passenger system.

The minister did not disclose the waiver of the PSICs nor the company’s non-certification as a dealer at the press conference. The ministry acknowledged Sunday Gleaner questions submitted on Thursday, which included queries about the procurement process used to engage Elhydro. There has been no response so far.

According to its online profile, Elhydro, incorporated in 2017, is an independent manufacturer, supplier, and distributor of industrial lubricants, greases, oils, chemicals, and other industrial products. It specialises in automotive, industrial, and heavy-duty applications.

Elhydro has received at least two multimillion-dollar government contracts since 2020. In December that year, Cabinet approved a $251.55-million contract for the supply of the Elhydro Kleenoil Bypass Filtration System to the JUTC. In April 2021, the company received a $301.9-million contract to supply biodiesel fuel for the state-run bus company.

“Unsolicited proposal”

The Sunday Gleaner also contacted Tanya Morgan and Phillip Scott, listed as directors of Elhydro, according to Companies Office of Jamaica records. Morgan declined to comment, but Scott defended the company’s selection for the contract.

Scott revealed that Elhydro submitted an “unsolicited proposal” to the Government for the school bus initiative and that his company is “the only one” that could import the specific type of buses required, citing the company’s dealership connections.

He said Elhydro has “a well-documented history” in transportation and dismissed concerns about the company’s lack of vehicle import experience. “Anyone can buy and import buses,” he said. “It’s a matter of knowing what to look for and when. A business can expand as it sees fit.”

“It was just based on the premise that we saw a need for that which could actually transform the transportation sector,” he said, noting that the proposal was made “a few years back” with multiple follow-ups before approval.

Scott dismissed objections to the programme, saying it serves a “noble cause”.

“There’s no one in Jamaica now that can literally tell us that there is no need for a school bus service. Our business does not have anything to do with politics. I don’t play [or] practise it… We’re never political,” he said.

The Opposition People’s National Party has raised concerns about the policy, particularly the inspection regime and the use of “retired old buses” from the US school system. One of its alternative proposals involves using existing taxi and bus operators, though that has drawn criticism. Claims that the imported buses could endanger lives have also stirred backlash.

kimone.francis@gleanerjm.com jovan.johnson@gleanerjm.com

Sunday Gleaner questions

to MSETT – July 10, 2025

1. What procurement method was used to select ELHYDRO as the importer or supplier of the 110 buses under the Rural School Bus Transportation Programme?

2. Was the contract to ELHYDRO awarded through competitive tender, and if not, why?

3. What criteria were used to determine that ELHYDRO was the most suitable company to supply the buses?

4. What is ELHYDRO’s core business, and what experience does it have in supplying vehicles or buses?

5. Were any other local or international suppliers considered or consulted before the decision was made?

6. When was the contract awarded to ELHYDRO?

7. At the time when the contract was awarded, was ELHYDRO certified as a new or used motor vehicle dealer by the Trade Board?

8. What role did the Cabinet or Public Procurement Commission play in the arrangement?

9. What is the total cost of the 110 buses being imported under this programme?

10. What’s the ministry’s response to concerns that the costs of the buses are inflated?

11. How is the purchase being financed – through the Consolidated Fund, loan, grant, or public-private partnership?

12. What is the per-unit cost of each bus, including shipping, duties, and retrofitting

13. What are the expected costs for monthly maintenance and insurance?