WASA settles six legal matters for $70 million

OVER $70 million was paid by the Water and Sewerage Authority (WASA) to settle six legal matters during the period December 2001 to January 2003.

One settlement, to Water Farms Trinidad Ltd, amounted to $51 million, when according to the Opposition UNC, it was recommended that the matter be settled for $9-$13 million. The disclosure was made in the House of Representatives on Friday last. Opposition Chief Whip Ganga Singh had asked Public Utilities and Environment Minister, Rennie Dumas, whether any legal matters were settled by WASA during the period December 2001 to January 2003, and to state the terms and conditions of each settlement.

Dumas announced that a payment of $51 million was made to Water Farms, and three other payments totalling over $19 million were made to three other contractors. The payments were in the sums of $16.5 million; $2 million and $775,000. He said a total of $285,250 was also paid to two former Public Relations Managers of the utility. Debbie Ann Sankarlal received $260,000 and Gideon Hanoomansingh got $25,250. Told by Singh that WASA was told to pay Water Farms between $9-$13 million, based on an audit and evaluation done by Ernst and Young and Lee Young and Partners, Dumas said he was unaware of the recommendation.He however said the payments, excluding those to the managers, were settlements for contractual disputes under the former UNC government.

Asked what made WASA settle for $51 million, Dumas refused to answer saying it was a new question. However, the Minister said the payments were under investigations by the Central Audit Committee of the Ministry of Finance. The Minister promised that as soon as the investigations were completed he would report the outcome to Parliament. Another question by Singh to the Minister, relating to the operating expenditure and revenue collection of WASA, showed the utility during the period January 2002 to December 2002, spending  $832 million and earning $402 million.