GOVT FACES $600 MILLION LAWSUIT

One corrupt act by a former minister could cost Trinidad and Tobago over TT$600 million.

Government is facing a US $100 million lawsuit from an international oil company, FW Oil, which is claiming, among other things, that a former UNC minister and officials of Petrotrin asked for bribes in order to secure the multi-million dollar contract to develop the South West Soldado oil field.  FW Oil had made an unsuccessful bid in 2000. The arbitration proceedings for this lawsuit are expected to begin in December 2003, in Tobago, and are estimated to last six weeks. A pre-hearing conference will take place in September 2003.

Attorney General Glenda Morean, speaking at a news conference at Whitehall, declined to name the former minister who was accused of soliciting the improper payment in return for favourable treatment. However, she did say that the former minister was no longer a member of Parliament. She also revealed that the former minister “did not show” for an interview with Government London-based attorneys, who came here several weeks ago. But the Attorney General conceded that it was not judicious to acknowledge anything in the light of all the investigations taking place. In fact, Morean noted that there were also counter allegations, which were coming from the Government’s side against the company — “that the company itself did have some dealings with persons in the jurisdiction.”

The AG said there was no coincidence between the announcement and the local government election campaign. She said that the timing of the announcement was based on the fact that Cabinet took a decision to engage London attorneys to investigate the claims (of the alleged improper consideration). She said Government had been given until July 31 to deliver “our bundle of documents,” and in order to have them properly prepared we need certain other information. She said Lord Mustil, former Privy Councillor and President of the Chartered Institute of Arbitrators is the arbitrator for Trinidad and Tobago. The AG said arbitrations have been taking on a very expensive character recently, although they are supposed to cut down on time and costs. She said Government had already paid a “couple hundred thousand pounds” in the process of defending this matter. And in a worse case scenario, Trinidad and Tobago, if it loses this arbitration, could end up having to pay US $100 million plus other costs. She said, however, she believed that Government had a good chance of success in the matter.

Morean said there would be no legal follow-up (against the persons involved in securing payment). There was a previous investigation into the Soldado matter. An ISS report in 2000 had concluded that “there was compelling information to suggest there is a high level conspiracy involving international companies, a minister with the TT government and senior members of Trinmar, to benefit financially.” At the time the then PNM Opposition had much to say about the attempt to procure an improper payment.