The Office of the Contractor General is investigating the arrangement between the Jamaica Urban Transit Company (JUTC) and the private firm, Millennium Security Limited, MSL.

Managing Director of the JUTC, Paul Abrahams, made the disclosure this afternoon on Cliff Hughes Online during a testy exchange with the PNP Spokesman on Transport, Mikael Phillips.

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The probe comes amid allegations by the PNP that the JUTC entered into a contract with a company which is owned by the brother of a Board Member.

Mr. Abrahams has denied the allegation stating the JUTC has no current contract with Millennium Security.

However, he says two projects–which have since been put to public tender –were awarded to MSL. Mr. Abrahams says in hindsight it should’ve been put to public tender from the outset.

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Meanwhile, Mr. Phillips is maintaining that the board and Mr. Abrahams didn’t act appropriately.

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Mikael Phillips is also conceding that contrary to his statement to the media yesterday, the JUTC did not engage MSL on a $50-million contract.