Why did the Water and Sewerage Authority chairman and WASA Board award an “extra” ex-gratia payment of US$9 million to the company undertaking the San Fernando Waste Water treatment plant despite that the contract for the $654 million project had no provision for additional payment?
Opposition MP Ganga Singh, during the budget debate, called on the Government for answers on the ex gratia payment of US$9 million or TT$60 million.
He added that on Tuesday he wrote the Inter American Development Bank (IDB) which is funding the project, seeking a probe of the situation.
“The WASA Board—in an initiative led by its chairman—acted in a manner intended to subvert the agreed procurement practices as agreed between itself and the IDB. This action may also amount to a ‘misprocurement’ under the applicable loan documentation,” Singh’s letter stated.
Singh told the Lower House, “Ex gratia is by favour; what is the WASA chairman doing negotiating (the IDB arrangement)?”
His letter to the IDB country representative noted that WASA had completed all due diligence and upgraded its procurement systems to satisfy IDB’s procurement policies.
But he said in a March 2016 letter, the project contractors—AAA Waste Water Treatment Plant Ltd, Agua Acciona SA—issued a termination notice to WASA invoking a contract clause due to non-payment. He said WASA rejected the notice and called for dialogue with the contractor. Meetings were also held with the IDB in May.
He said the IDB arrangement had no provisions under the contract to share costs or provide additional payment to the contractors.
“But the WASA chairman—Romney Thomas— who, anointed by the Public Utilities Minister, behaves like an executive chairman, led the charge to get extra money for the contractors on a $654 million contract. A WASA Board meeting approved the US$9 million ex gratia payment.”
Singh’s letter to the IDB stated that the board’s action constituted undermining the economic and financial viability of the project.
“The making of this substantial ex-gratia payment to the contractor, without any legal obligations to do so, not only defeats the procurement process to which parties agreed but attenuates the values upon which the IDB funding is based,” the letter added.
Singh claimed the WASA chairman was bullying officials at the authority.
He accused the Public Utilities Minister, Ancil Antoine, of same, saying Antoine told a WASA operations meeting that as a former soldier, “when one conquers a territory, destabilising elements are removed.”
Calling on Antoine to deny it, Singh said, “I know the date, time place, and what he said.”
Singh also questioned a $1.9 million payment to Advance Dynamics for organising a consultation for the Local Government Ministry. He further noted correspondences from Desdra Bascombe to Gennike Mayers stating: “The minister wants us to give Andrew his cheques this week.”
Singh added: “Who’s Andrew? I know two Andrews: Prince Andrew and one time UNC Senator Andrew Gabriel, campaign manager.”
Singh said Opposition Leader Kamla Persad-Bissessar’s budget reply noted the capture of the Government by the elite represented by big business and conglomerates at the expense of the poor and vulnerable.
He said everywhere the IMF intervenes, there are oligarchies and other such groups influence from boardroom to state room with conglomerates using media. He said that occurred with former PNM treasurer/state board chairman Andre Monteil and also with TSTT.
“What will happen with the National Gas Company and conglomerate infrastructure supporting the power of the oligarchy using the media?” he questioned. Singh said another grab looms with the sale of Cable and Wireless TSTT shares. • See Page A11