Delsacott fraud charge

VALSAYN businessman Hafeez Karamath was released on $1 million bail yesterday when he appeared in court to answer a charge of defrauding the Trinidad and Tobago Government with respect to the controversial Desalination Company of Trinidad and Tobago (Desalcott).

Karamath, 50, of Palm Road, Valsayn surrendered to members of the Anti-Corruption Bureau shortly before midday yesterday when it was learnt that a warrant was out for his arrest. After he was processed, he was taken to the Port-of-Spain Magistrates’ Court.

It was not until 1.55 pm that he appeared before Magistrate Lianne Lee Kim in the Fourth Court. Attorneys Ravi Rajcoomar, Donna Prowell, and Daryl Allahar were present to represent Karamath. The magistrate then read the charge.

It was alleged that between January 1, 1998 and August 25, 1999, in the island of Trinidad and Tobago and elsewhere, he conspired together and with other persons to defraud the State of Trinidad and Tobago with a view to gain for himself, by dishonestly arranging a water supply contract to be awarded to a joint venture between Hafeez Karamath Engineering Services Limited and Ionics, known as the Desalination Company of Trinidad and Tobago (Desalcott) by the State through the Water and Sewerage Authority, by:

(1) falsely pretending that the said process was open, honest and competitive,

(2) the manipulation of the Desalination Project Committee (the Bid Evaluation Committee) so that the grant of the water supply contract to the said Desalcott was pre-determined.

The charge was laid indictably by Inspector John Telesford of the Anti-Corruption Bureau. It was learnt that charges are expected to be laid against two foreigners and other locals in this case.

In his application for bail, Rajcoomar said Karamath’s arrest was part of an ongoing investigation by the police. “We were well aware that charges were going to be laid,” Rajcoomar told the court.

He said his client had no previous convictions and he was well-known. But the police prosecutor objected to bail, saying the police needed time to conduct a trace and to know if the accused has previous convictions.

Rajcoomar said he was surprised that the police were taking such a position, saying his client surrendered to the police earlier in the day. He said a letter dated March 17, 2006 was sent to the police indicating that Karamath would appear if he was needed.

“There is no question of flight, he is a well-known businessman,” Rajcoomar added. Lee Kim was satisfied and granted Karamath bail in the sum of $1 million with a surety. He was ordered to hand over his passport and to report to the St Joseph Police Station on Thursdays between 2 pm and 6 pm. The case was transferred to the Eighth Court on June 6.