ADB slammed for reckless expenditure

Justice Frank Seepersad was critical of the ADB’s actions when it rented property at No 2 Mulchan Seuchan Road, Chaguanas, from 21st Century Insurance and Reinsurance Brokers Limited and spent some $10.3 million in customising the four-storey building for its head offices which was not permitted by law. In his ruling, in which he dismissed the ADB’s claim, Seepersad said there was little regard for the welfare of the public purse.

“This type of behaviour appears to be undertake far too often by statutory bodies,” he said, adding that what was also alarming was the absence of approval for many structures in the Borough of Chaguanas and little enforcement action by the authorities.

“There is a need for a clear and revised policy in relation to national development...As a nation we have to strive to ensure that infrastructural development is planned, ordered and decentralised away from the traditional urban centres.

The haphazard development that has characterised the last 25 years has contributed to the traffic gridlock that now confronts us and there is also need to review the reclassification/zoning of areas as many residential areas are now commercial hubs,” he said.

The ADB’s board went ahead with the rental and a lease was entered into at the monthly rental of $200,000 from May 2, 2012 to May 1, 2016. A dispute arose between the two parties after the ADB called on 21st Century to produce final planning permission for the four-storey building and placed the monthly rent into an escrow account but continued to occupy the building.

In July 2013, 21st Century, which received planning approvals from the Town and Country Planning Division, served a notice of termination of the tenancy on the ADB, which agreed, and the bank eventually vacated the property.

The ADB filed its claim for breach of a term of the lease and damages for misrepresentation while 21st Century filed a counter-claim to recover all sums due and owing as arrears of rent as well as liquidated damages for the non-payment of rent, cost of the rental of car park spaces at the Centre City Car Park, electrical and restoration expenses, loss of income rental and damages