A civil engineering company is suing a state enterprise for over $1.2 billion in unpaid bills.
The lawsuit, possibly the largest ever brought by a private company against the State, was filed in the Port-of-Spain High Court yesterday afternoon by attorneys representing Namalco Construction Services Ltd, which is based at the Labidco Industrial Estate in La Brea.
According to documents obtained by the T&T Guardian, the company is claiming that the damages being sought represent unpaid fees for six construction contracts performed for the Estate Management and Business Development Company (EMBD) over the past five years.
The company is contending that it was not paid despite completing the projects and having them approved by an independent engineering company, as stipulated in its contracts with EMBD.
“At no stage, or at any of the material times, has the EMBD, by its agents, servants or senior employees, sought to deny that it had a very substantial liability to Namalco,” the documents stated.
In addition to the $1,291,877,247.22 the company claims it is owed, it is also seeking damages from the court for EMBD’s breach of their contracts.
It also claims that through its actions the EMBD breached its own policies for the handling of contracts its former board members had revealed at a Joint Select Committee meeting of Parliament, last year.
EMBD is mandated to manage and develop agricultural land held by the State acrosss T&T.
The previous board chaired by Heackle Lall had told the committee that its ability to perform its duties was hampered by its predecessors, who signed contracts for the development of several sites without ensuring that financing was available to perform geotechnical and economic studies on the sites.
The committee chaired by former Independent senator Elton Prescott, SC, had recommended that the then board perform a forensic audit into the projects undertaken by the EMBD to determine if there were systemic shortcomings and identify those responsible.
Since assuming office in September last year, Finance Minister Colm Imbert has repeatedly stated that the Government was still assessing its liabilities to contractors incurred during the previous administration and was working on a plan to fulfil its obligations in the light of ongoing fiscal constraints caused by low energy prices.
The T&T Guardian attempted to contact officials of the EMBD for comment but calls to its Couva office went straight to voicemail up to late yesterday.
Namalco is being represented by British Queen’s Counsel Simon Hughes and attorneys Om Lalla, Dereck Balliram and Jessica Harragin.
A date for the first hearing of the lawsuit is yet to be set.