Humphrey denies knowing Gov’t guaranteed loan to Calmaquip

FORMER Housing Minister John Humphrey yesterday denied knowing that his government guaranteed two loans for US$30 million for the Airports Authority (AA) to finance the CP 13 contract for speciality equipment, awarded to Miami-based Calmaquip Ltd.

He also denied knowing that former Transport Minister Jearlean John complained to former Prime Minister Basdeo Panday about the Piarco airport development project, which resulted in the disbanding of the Inter-Ministerial Committee which Humphrey chaired. Humphrey was continuing his evidence yesterday at the Commission of Inquiry into the Piarco airport development project. He was being questioned by lead attorney for the commission, Theodore Guerra, SC. Humphrey said based on a recommendation by former Finance Minister Brian Kuei Tung, the CP 13 contract was reassigned from NIPDEC and given to the AA. He said he always felt that NIPDEC should not have gotten the contract to manage the airport project because he felt they were “technically useless but politically useful.”

Humphrey said he was aware that the contract between the AA and Calmaquip provided for Calmaquip as contractors to finance its loan to provide speciality equipment. But he was unaware that the government guaranteed two loans on behalf of the AA which sourced the loan from the Dresdner Bank. One loan was for the sum of US$26.2 million and the other US$4.5 million. Humphrey said he only became aware of the government guarantee during his evidence yesterday, when he was shown documents by Guerra, but he agreed that Kuei Tung authorised the guarantee. He said Kuei Tung as chairman of the Finance and General Purposes Committee and Minister of Finance had tremendous power. He, however, noted that Kuei Tung could not have guaranteed the loans without getting Cabinet approval.  But he said he knew nothing about the guarantee although he was a senior Cabinet minister.
Asked if it was kept a secret from him, Humphrey said he really didn’t know what went on.

Asked if he was surprised by the decision, Humphrey said he wasn’t because it was normal. Questioned about the disbanding of the Inter-Ministerial Committee which he chaired, Humphrey said he didn’t know that John had complained to Panday about the project after she took control of the project. Humphrey said he also didn’t know that Panday had admitted to John that he (Panday) knew the project was a “feeding frenzy” and it was being treated like a “milch cow.” Describing himself as the “foster father” of the project, Humphrey agreed he had a great interest in seeing the project come to fruition and it was taken away from him by Panday. Humphrey will continue to be questioned by Guerra on Monday when the inquiry resumes at 9.30 am.