Perfect performer

Hart led four Udecott directors and six managers to face reporters the day after Prime Minister Patrick Manning’s nod in the Senate for Udecott to be probed by a parliamentary Joint Select Committee (JSC) — but not by a commission of inquiry — after charges of insufficient oversight made by fired Trade Minister Dr Keith Rowley.

Backed by the velvety assurances of Udecott deputy-chairman Dr Krishna Bahadoorsingh and the combativeness of director Michael Annisette, Hart ducked the politics of the current impasse which has seen Rowley fired for supposed “wajang” behaviour in a Cabinet-committee meeting where he complained about not knowing of a 60-room hotel in the National Academy of the Performing Arts in Port-of-Spain.

Hart, saying the board welcomed scrutiny of Udecott, clinically addressed each of the main criticisms of the structure and operations of his company.

The picture painted was that of a company able to get buildings built quickly, but which now faced critics with their own economic agendas.

Hart said the upcoming JSC hearings would give Udecott the opportunity to show what it does and allow an examination of its operations.

Countering Rowley’s complaint, Hart said Cabinet minutes since January 2006 had stated the performing arts centre includes a 60-room hotel.

Hart said Udecott does not get funds from Cabinet but must undergo three different approval procedures with the client ministry, in the academy’s case the Ministry of Culture, the Ministry of Planning (Udecott’s line ministry) and the Ministry of Finance.

“It is not true that Udecott has unfettered access to public funds. There are procedures for the release of funds.”

He said the Port-of-Spain Waterfront Project had been built with funds raised on the US market without the use of a government guarantee. Further, the Government would only start to pay the leases for these buildings upon occupation and these funds would not go to Udecott but to their financiers. Hart then listed the oversight mechanisms over Udecott.

Udecott, he said, is governed by the Companies Act 1998 which requires directors to disclose any interests; to act honestly and in good faith in the best interests of the company; and to exercise reasonable care, diligence and skill.

Further, the Companies Act requires an independent annual audit of Udecott’s accounts which are laid in Parliament whose Public Accounts (Enterprises) Committee (PAEC) questions Udecott on the accounts.

“The directors of Udecott are persons in public life under the Integrity in Public Life Act chapter 22:01, are governed by the code of conduct contained in the Act and are subject to the jurisdiction of the Integrity Commission. Udecott is a public authority under the Freedom of Information Act chapter 22:02.”

Hart said Udecott is overseen by the PAEC, which under section 119(8) of the Constitution, examines any reports to the House of Representatives on the audited accounts, balances sheets and other financial statements of Udecott.

“Udecott has in fact appeared before the committee on four occasions last year and was thanked by the chairman of the committee for appearing and providing the committee with all the information that it had requested from Udecott.”

He said the Auditor General is empowered by section 116 (2) of the Constitution to carry out audits of the accounts, balance sheets and other financial statements of any enterprise owned by the State, including Udecott.

Hart said although Udecott falls outside of the Central Tenders Board, it is governed by procurement rules approved by the Ministry of Finance since 1995. He said Udecott reports to the Cabinet through the three above-mentioned ministries of which it is accountable to the Ministry of Finance as corporation sole.

Hart gave specifics of Udecott’s projects, all of which, he said, had got the approval of Cabinet from whom nothing had been concealed.“Seventy-seven percent of the contracts awarded by Udecott for construction activity have been awarded to local contractors, and 23 percent are being undertaken by foreign firms.” He added that some 73 percent of consultancy contracts went to locals, and 27 percent to foreigners.

He said foreign firms have no special arrangements but bid for contracts on the same basis as local firms. Only three projects had been done on sole selective basis, including the Port-of-Spain and San Fernando performing arts academies and the Prime Minister’s Residence and Diplomatic Centre.

The arrangements with Chinese firms were not new, he said, but agreements had been signed between the TT and Chinese governments since May 21, 1999 for works now being done.

Hart gave specifics. He said the Ministry of Education tower had seen the Shanghai Construction Group bid $50 million less than the nearest rival. He denied substandard material was ever used on the Port-of-Spain performing arts centre and that local steel was used because of the late arrival of Chinese steel. “There was never any damning report by Genivar. There was never any stoppage.”

He said Hafeez Karamath was the lowest bidder on the Beverly Hills housing project at $30 million, and that its $300 million bid for the Ministry of Legal Affairs building was less than the $408 million bid of NH International. Hart said Udecott had acted properly in the Landate issue, where the Integrity Commission had probed and cleared Rowley over allegations of diversion of materials from the new Scarborough Hospital, leading to Rowley to sue the commission for allegedly breaching his rights to a fair hearing. “ I must emphasise that at no time did anyone at Udecott initiate this or any other investigation into any minister.” He ended by hitting what he called a “vicious, malicious and false” e-mail that had caused substantial stress to his family and himself, and which his attorney Om Lalla then said had been subject to a private settlement including an apology from journalist Laura Dowrich-Philip.

In the question session, Hart was supported by fellow Udecott directors and managers. Chief operating officer, Neelanda Rampaul, said the Hyatt hotel was built quickly compared to the Belmont Police Station, and asked: “Is it that economic interests are trying to block development?” Bahadoorsingh assured that Rowley had been Udecott’s line minister for three years during which time nothing had changed in the company’s functioning.

He said Udecott has a unique capability of making things happen, although when questioned casually said all their projects are not on time nor on budget. Hart did not get drawn in to political questions. Asked about his relationship with Manning, Hart said Manning was a man of vision whose heart held a special place for development, but that the duo are not “liming partners”. Hart said, “It’s a very proper relationship.”