Joint Select Committee member Franklin Khan yesterday admitted that the agent for the Super Fast Galicia, Inter-continental Shipping Ltd, was paid $18 million by the former People’s Partnership government for services it never provided to the sea bridge.
Khan also disclosed that in April 2014, a cheque was sent from the then Ministry of Transport to the Port Authority of T&T (PATT) to be placed in an account until a contract was executed for the Galicia, which raised a lot of questionable circumstances.
He made the revelation during the second day of the inquiry into the inter-island sea bridge which specifically focused on the procurement and maintenance of the ferries.
Khan said the 18-month contract between Inter-continental Shipping and PATT was breached on Inter-continental’s part when they unexpectedly withdrew the Galicia from the sea bridge service in April of this year.
“The nation should know that this precipitated the crisis, ”Khan said, referring to the ongoing sea bridge fiasco.
Khan said before departing our shores the country did a lot of good things for the Galicia, which the public was unaware of.
“And check how they behaved at the end. I want to go on public record,” he said.
Khan recalled that a contract involving the Galicia was signed on May 7, 2014 with an effective date of May 1 at $15,000 Euros per day. However, he said the boat started to work the sea bridge on August 4.
“Is it that we paid over that period approximately $18 million before the vessel worked a single day? Is that true? So this country paid Inter-continental the sum of $18 million for services not provided?”
This figure was confirmed by the Ministry of Works and Transport acting permanent secretary Sonia Francis- Yearwood.
Khan also drew reference to another matter involving the Galicia, regarding an April 2014 cheque which was sent from the then transport ministry to the Port Authority of T&T to be placed in an account on hold until a contract was executed.
“Something about this company and this boat found favour with the then administration,” he said.
Khan said while Francis-Yearwood should not be blamed for this action, he queried if it was normal practice for a cheque to be issued without there being an executed contract or an invoice submission.
Francis-Yearwood said she had never experienced such a situation.
“Then who possibly, from your experience, in the hierarchy of the ministry, could have initiated an event like that... far less, get a cheque cut and sent to the Port Authority under these questionable circumstances?”Khan enquired.
Francis-Yearwood said that would have been an activity between the Ministry of Transport and Ministry of Finance.
“I don’t want to put you in a spot, it could have very likely involved a minister,” Khan said.
Francis-Yearwood said she would not place herself in that spot.
“I have absolutely no record of that time,” she responded.