Airport cost jumps from $650M to $1.6B

FORMER Works and Transport Minister Senator Sadiq Baksh and former NIPDEC Director Trevor Romano knew the Piarco airport project would cost a billion dollars instead of the budgeted $650 million, but opted to keep that fact hidden for fear that the public would not accept the billion dollar project.

The startling revelation was made by the Ministry of Works and Transport client representative Peter Cateau when he continued his evidence yesterday. Cateau’s disclosure came when he being questioned by the Commission’s lead attorney, Theodore Guerra, SC, based on the contents of a confidential letter Cateau sent to Guerra dated April 17, 2003.  Cateau vowed in the letter to  “reveal things to stop the deliberate distortion of facts”. The letter was read into the records despite an objection by Cateau’s attorney Keith Scotland. Cateau in the letter to Guerra expressed concern that his life might be put at risk based on the revelations he had to make and asked that the Commission protect him. At the start of yesterday’s sitting, after adjourning Towfeek Ali’s matter to May 20, Cateau was recalled to the stand to be questioned by Guerra.

Guerra immediately sought to deal with the letter he received from Cateau. After Cateau confirmed he had sent the letter, his attorney Scotland objected to it being made public on the ground that it was written under confidence. Guerra however said Cateau as a witness for the Commission had written him in confidence stating certain facts and that he intended to do certain things, and therefore the letter should be made public. Chairman Clinton Bernard ruled in Guerra’s favour. Cateau stated in part in the letter that recent observations had moved him to make known “revealing things which need to be said” as it related to his former boss, Minister of Works and Transport Sadiq Baksh, Trevor Romano, main contractor NCL and other contractors, Birk Hillman Consultants (BHC), NIPDEC and Justin Paul, his Permanent Secretary.

He said the revelations had to be made to “stop the deliberate distortions of facts”, but he cautiously added that “it might result in my life being at risk and I trust you will protect me.”
Questioned by Guerra about the revealing issues concerning Baksh, Cateau said when he came on the project in 1998 as client representative, he was concerned about the project budget and arrangements in place for the project. He said although the budget was $650 million, he knew with the addition of VAT and fees to BHC and NIPDEC, the budget would have been closer to a billion dollars. Cateau said he expressed his concerns about the budget to Baksh during a meeting with Trevor Romano and Justin Paul, a Permanent Secretary. He said he requested that correct funding be put in place and Cabinet be approached on the issue, or else problems would develop. However he said Romano commented that making the budget of one billion known, the public might not accept the project and Baksh agreed with him.

Baksh did not say no, he emphasised to the Commission. Asked if in that discussion the question of speciality equipment arose, Cateau said yes. He said Baksh pointed out that the equipment would be funded outside of the $650 million budget. Cateau said Baksh also did not take a leading role as he would have expected a line minister in charge of the project to do. Cateau said things appeared to be ad hoc with no real identifiable project team to manage the project and the contractual arrangements did not allow for proper accountability. Cateau said he spoke to Baksh about his concerns but got no “real response.” He said Baksh merely told him NIPDEC was there to do its job but he (Baksh) did nothing. Cateau also said he had requested from Baksh that a financial audit be done on the project but Baksh never complied. Cateau said at the end of construction of the terminal $1.3 billion was spent and with the completion of other works the cost was $1.6 billion. He also repeated that for BHC to be effectively challenged on the project he and NIPDEC needed the support of the Baksh. Cateau also spoke of pressures brought on him by the Inter-Ministerial Committee to award a contract to NCL. He said to get anything sanctioned on the project the Committee, BHC and the Airports Authority had to approve it. Cateau will continue his evidence today to speak of more “revelations” he promised in his letter.