The Office of the Prime Minister (OPM) yesterday denied reports that a new official car valued at $13 million was being purchased for Prime Minister Bruce Golding.

"A contract, in the amount of US$64,400 (J$5.4 million), was approved by the National Contracts Commission (NCC) on December 10 for the purchase of an official vehicle for the prime minister," the OPM said in a release.

"However, Prime Minister (Bruce) Golding gave instructions for the order to be cancelled, as he considered it important to set an example at a time when Government must use every possible means to reduce expenditure and contain the fiscal deficit," the release added.

The release pointed out that the official car being used by the prime minister is 16 years old and was "purchased shortly after Mr P J Patterson became prime minister in 1992".

"It has broken down on four occasions while conveying Prime Minister Golding and a decision was taken for it to be replaced. With the cancellation of the order for a new vehicle, the prime minister will continue to use the 16-year-old vehicle," OPM said.

The OPM also disclosed that a letter issued by Golding on January 19 gave instructions that there is to be no expenditure on official vehicles or official residences for Government ministers during this year, except for essential maintenance.