Did corrupt former State officials ask US oil firm, FW Oil, for a bribe to access Southwest Soldado Oilfield? And if so, is this bobol now the basis for a legal claim by FW Oil, or are they claiming for a breach of contract by the State in wrongfully terminating the Soldado deal? These are the two key issues in a war of words between Attorney General Glenda Morean and FW Oil. On Thursday Morean had said this country faces a $600M lawsuit from FW Oil which she said is claiming among other things that a former UNC government minister and officials of Petrotrin had asked FW Oil for bribes to win the contract for Southwest Soldado Oilfield. But on Friday FW Oil said Morean’s statement was inaccurate. FW Oil denied it had been approached for a bribe, and said its claim was actually based on wrongful termination of its contract by Petrotrin and Trinmar. FW Oil had stated: “FW Oil notes that it did not allege that a former minister of the government requested any payment. The basis of its claim is the unlawful termination of the tender contract by the state companies Petrotrin and Trinmar”. However yesterday Morean issued a statement reiterating her position, citing as evidence the court documents filed by FW Oil itself. Morean said: “Given the nature of the arbitration proceedings between the two parties, the Ministry of the Attorney General has been very careful in releasing any information on the dispute but now feels constrained to respond, in the public’s interest.”

She cited FW Oil’s “Summary of the Dispute”, a document it filed in its claim against the Government for US1.5 million compensation for the termination of the Soldado contract. Morean quoted: “FW Oil’s claims in this arbitration results from corruption and other unlawful conduct by officials of TT state enterprises…”. The complete document sent to Sunday Newsday continued: “In retaliation for FWO’s refusal to pay a US$1.5 million bribe in connection with an oil and gas contract, senior officials of the TT state oil and gas company engaged in wrongful conduct that caused a subsidiary to breach its contractual obligations to FWO and to violate rights guaranteed to FWO as an investor under the Bilateral Investment Treaty (BIT) between Trinidad and Tobago and the United States. This conduct was part of the plan to avoid the acknowledged contractual rights of FWO.” The FW Oil document explained that in February 2000 Trinmar had invited FW Oil to tender for South West and West Soldado oil and gas fields, and in September 2000 FW Oil had been awarded the contract, after a detailed nine-month evaluation supervised by independent auditors. FW Oil’s proposed capital commitment to the project was over US$60 million (over TT$360 million). FW Oil’s Summary of the Dispute continued: “During the negotiations, however, and without FWO’s knowledge, certain TT officials hoping to benefit personally from the Trinmar project, had embarked on a course of conduct that would ultimately cause Trinmar wrongfully to withdraw the award of the contract. “In July 2000, acting through intermediaries, certain TT officials demanded a US$1.5 million bribe and threatened to block FWO’s proposals unless the bribe was paid. FWO refused. They later caused a fax to be sent to FWO listing a Cayman Island bank account and demanding that US$200,000 be deposited into the account as the first payment of a bribe. FWO again refused. The officials then commenced a campaign of disinformation, designed to force FWO’s removal as the successful bidder and abused their oversight positions in Petrotrin and the TT Government to block Trinmar from proceeding with the award. These officials ultimately caused Trinmar to withdraw the award in February 2001.

“Finally in June 2001, TT submitted the project to a new tender. In breach of its contractual obligations and duties of good faith and confidence to FWO, TT modelled its new tender on FWO’s confidential business plans and economic models. “By its conduct, TT has breached its agreements with FWO and its obligations under TT law, the BIT, and international law, and has caused FWO substantial damage and loss. FWO respectfully requests that it be awarded compensation for its lost profits and wasted costs.” The Attorney General sent to Sunday Newsday a continuation of the FW Oil’s court documents, entitled “Continuing discussions between FWO and TT”, describing it as “an affidavits supplied by FW Oil which accuses a named [former] government minister of blocking the project for his own personal interests”. The ex-minister’s name was deleted from the supplied document. The affidavits of FW Oil  said that at a meeting on 19 March 2001, Trinmar told FW Oil that Petrotrin had put the Soldado project on hold, but that the Trinmar letter of 26 February 2001 did not actually withdraw the award from FW Oil. But the statement (in its censored form sent to the media by the AG’s Office with the ex-minister’s name deleted) said: “However, acting in his own self-interest and without board approval, a  Minister inserted the final paragraph of the letter withdrawing the award from FWO. He held an interest in an energy company that was a potential bidder for the Soldado Fields Project. It was thought that he was trying to ‘guide’ the project to that company.” In Morean’s statement she lamented FW Oil’s reference to “TT officials” and “officials of TT state enterprises”, and she concluded: “Based on the allegations contained in FW Oil’s claim, the Government has initiated its own enquiries, which also informed the statements made by the Attorney General on the matter…The Attorney General reiterates her position that the Government will do everything possible to protect the interest of the people of Trinidad and Tobago in bringing settlement to this issue.”

The Commission of Inquiry into the Piarco airport project has entered its second phase. That is the phase where persons who were implicated by the evidence of witnesses are summoned to appear to challenge the evidence by cross examination, direct evidence or by calling supporting witnesses. The inquiry has sat for 157 days.

Monday
Bernard tells witness:
I can do what I want

TEMPERS flared at the Commission of Inquiry into the Piarco Airport Development Project on Monday, resulting in former Security Manager at the Airports Authority (AA) Dennis John being reminded that failure to answer questions satisfactorily could draw a $2,000 fine. The warning from Commission Chairman Clinton Bernard followed John’s questioning of why Bernard was pointing his finger and threatening him. Bernard told John he could do anything he wanted. The exchange came after the Commission’s lead attorney, Theodore Guerra, SC, asked John to read a memo. John was looking at the last page of the memo and when told by Guerra he had to read from the front, he angrily replied: “You can’t tell me how to read”. On hearing the comment Bernard pointed his finger at John and warned him about the response, saying it was “out of place”. After John questioned why he was being “threatened”, Bernard forcefully reminded him that under Section 12 of the Commissions of Inquiry Act, any witness who failed or refused without sufficient cause to satisfactorily answer questions put to him was liable to a $2,000 fine on summary conviction. John apologised for his comment but insisted that Bernard not point his fingers at him. “I can do anything I want, if you have an objection you can take it elsewhere,” Bernard told him. Bernard later said it was his habit to point his finger at people when speaking. John was recalled to give further evidence on the contract awarded by the AA to the Firearms Training Institute to service the firearms. He said the contract was “mysterious”. John confirmed that then Transition Manager at the AA, Brendan Carmody, sent him a memo dated March 13, 2000, about the contract to the Institute. That memo was also sent to AA Finance Manager Joshey Mahabir. In his letter, Carmody expressed concern about the contract. Carmody said that he had learnt that the Defence Force had initially serviced the firearms at no cost to the AA and they were willing to resume.

Tuesday
Maritime- Spider in web of corruption

MARITIME Life Ca-ribbean Limited (MLCL) was the spider at the heart of a web of corruption while former National Security Minister Russell Huggins, UNC financiers Ishwar Galbaransingh and Steve Ferguson were allegedly involved in a paper trail flowing into MLCL from several subsidiary companies. This was reaction from lead attorney for the Commission Theodore Guerra SC, to Deputy Registrar in the Registrar General’s Department, Francis Sandy’s testimony on Tuesday. Questioned by Guerra’s co-counsel Margaret Rose, Sandy revealed an elaborate trail of shares flowing out of MLCL into a series of smaller companies. He said a major shareholder in MLCL was BRI Investment Company of which Galbaransingh was both a director and shareholder. Sandy said BRI filed only one return in 1997 which, suggests that it is no longer operational under the Com-panies Act. Asked if he located BRI’s major shareholder, RC Investments Ltd, Sandy said he only found a company called R&C Investments. He then revealed Galbaransingh and Ferguson were directors of a company called International Castle Hol-dings Ltd in which Gal-baransingh and Dagwood Investments Ltd held 100,000 shares apiece. Questioned further, Sandy said Huggins was one of two directors at Dagwood and held no shares compared to the company’s only shareholder, Rocher Trust and Financial Services Ltd. He added that his checks of  Rocher revealed Huggins was also a director of that company. At this point, Guerra interjected: “In the centre of this spider web of companies is Maritime with its tentacles stretching out from the centre.”

Wednesday
Panday allowed BHC too much power

FORMER Prime Minister Basdeo Panday allowed Birk Hillman Consultants (BHC) too much power on the Piarco Airport Project and ignored NIPDEC’s warnings that this was “dangerous for the success of the project”. This was the testimony of former NIP-DEC general manager Noel Garcia on Wednes-day. Under questioning from NIPDEC attorney Chris-topher Hamel-Smith, Garcia said NIPDEC chairman Edward Bayley told him in September 1997 about a Cabinet decision to transfer control of the project from the Airports Authority (AA) to NIPDEC and on March 31, 1998, an agreement to that effect was reached between NIPDEC and the former UNC government. However, Garcia said a previous contract signed between the AA and BHC, which gave the latter extensive powers on the project, remained intact. He said those powers included responsibilities for architectural design, engineering and being project managers on a fast-track method. Garcia said he was “outraged” because NIPDEC had extensive experience on such projects for the government and the concentration of all these functions in BHC’s hands was “highly unusual and inadvisable in the interest of the Government and the project”. According to Garcia, BHC claimed monies for work done on the CP6 package although no work was being done on that aspect of the project. Garcia said NIPDEC’s Board of Directors agreed with his recommendation that BHC’s powers be suspended, he wrote to Works Ministry Per-manent Secretary Justin Paul on the matter and even “raised it directly” with Panday. The former NIPDEC GM said no response was received from Government “urgent or otherwise”.

Thursday
Cateau: BHC
was overpaid

MINISTRY OF Works and Transport client representative on the Piarco Airport Development Project, Peter Cateau, said yesterday he was surprised and shocked that Joshey Mahabir, Finance Manager at the Airports Authority (AA), authorised the payment of US$626,296 to Birk Hill-man Consultants (BHC). The payment was for implementation of  institutional strengthening and support services. He also admitted that BHC was overpaid and it would be difficult to get back the excess money paid to them if they had already received all monies owed to them. Cateau, who was questioned on Thursday by the Commission’s lead attorney Theodore Guerra, SC, admitted he was the one to sign cheques for work on the project and BHC had gone behind his back to Mahabir to get paid for the work. He said Mahabir had no authority to pay any monies to BHC. He agreed with Guerra that either Mahabir or former AA Chairman Tyrone Gopee interfered with the ordinary operations of the contract. Cateau also admitted that the AA has since written him seeking to be reimbursed but to date he has not done so. He said the money paid to BHC was part of BHC’s original fees for its scope of work. Asked why BHC was paid twice and treated with kid gloves, Cateau said they did additional work and had to get more money. However, he agreed that BHC was overpaid. Asked why it had to take a Commission of Inquiry to bring out that fact, Cateau insisted that the final accounts of the project would have revealed that BHC was overpaid. He assured the Commission the matter would be corrected. Asked if he shared the view that tax payers dollars were wrongly paid to BHC and whether it would be recovered, Cateau said it would be difficult to get back the overpaid money.

Friday
Humphrey admits
airport cost too much

FORMER Housing Minister John Humphrey on Friday admitted that the Piarco Airport although very well designed has some faults and should not have cost as much as it did. It has been suggested that the cost of the airport is $1.6 billion. Humphrey also said he felt he had fulfilled his duties as Chairman of the Inter-Ministerial Committee until recently when a number of questions arose as to whether he was truly effective in his role. He said his doubts arose because of evidence he heard at the Inquiry. Humphrey was being re-examined by his attorney Sean Cazabon. When he was asked what he thought were the reasons for the cost overruns on the project, Humphrey said the major reason was that NIPDEC did not understand the fast track method which was being used. He said NIPDEC was allowed to use its own tendering process which bore no relation to the fast track method and did not put the personnel in place to deal with the project. He insisted that the Airports Authority (AA) was the competent authority to handle the project as was done initially and whoever had informed then Prime Minister Basdeo Panday to remove the project from the AA to NIPDEC “was ill-advised to do so”. Humphrey also said it was a mistake to fire the professional team which was on the project initially. He also suggested to the Commission that it recommend measure on how to proceed with similar projects in the future. He agreed with Chairman Clinton Bernard that in the future all major government projects should have local experts at the helm leading foreigners, rather than vice versa, as happened on the Piarco project. He denied he was trying to defend Birk Hillman Consultants (BHC) and pointed out that besides Northern Construction Limited (NCL), other contractors got substantial increases in their contracts compared to their original contract price.

A San Juan man charged with possession of a firearm, on Friday informed Port-of-Spain Magistrate Melvin Daniel that he is unsafe in jail and needs the gun to protect himself when in public. Shawn Samuel, 22, of Mohammed Trace, El Socorro was arrested outside his house by PC Mohammed of the Barataria Police Station on Wednesday. Samuel allegedly had in his possession a home made shot-gun and one round of ammunition. While the Magistrate was reading the charge, Samuel said, “Well Sir what I really had the gun for was protection.” Samuel, who was not represented by an attorney, was then scolded by Daniel for interrupting him. When the magistrate adjourned the matter to June 16, Samuel dropped his head and walked off, but was called back from the prisoners’ holding bay to complete what he was attempting to say. “What I was saying is that right now my life at risk because I’m a witness in a murder and right now, those men after me, and some of them in the jail now,” mumbled Samuel with his head down. He added, “Sir, it is best you give me bail.” Daniel told the man that he would take into consideration what he said when the matter came up on Monday.

THE OPPOSITION United National Congress (UNC) has five questions on the Order Paper for next Monday’s sitting of the House of Represent-atives but will that session again see the UNC refusing to ask its own questions? When the Lower House sat two weeks ago, the UNC refused to answer nine questions it placed on the Order Paper as part of its promise to give House Speaker Barry Sinanan “thunder”. In the line of fire will be Public Utilities Minister Rennie Dumas who has to answer three questions from the UNC. Bara-taria/San Juan MP Dr Fuad Khan wants Dumas to reveal the exact number of dead dogs retrieved by the Solid Waste Manage-ment Company Ltd’s (SWMCOL) Dead Animal Retrieval Team (DART) while Tabaquite MP Dr Adesh Nanan wants to know the identity and compensation package of SWMCOL’s communications manager and the percentage of electricity from TTEC which reaches regularly metered customers. Fyzabad MP Chandresh Sharma wants Planning Minister Dr Keith Rowley to update Parliament on the expenditure to date from the US$20 million World Bank loan for an HIV/AIDS Prevention and Control Project. Chaguanas MP Manohar Ramsaran wants Local Government Minister Jarrette Narine to say whether the Chaguanas Borough Corporation was consulted about road paving in the Enterprise South electoral district.

A FYZABAD woman is seeking damages from a truck driver and the trucking company which owned the 25-foot long trailer involved in a fatal crash that claimed the lives of her son and his fiancee ten years ago. Shakunti Ramnarine Singh, of Siparia Road, has brought the action against truck driver Hajarie Doorgan and his former employers Central Trucking Company Limited, of McBean Village, Couva. The company is owned by Kawal Lakhan. Singh’s son, businessman Dianan Ramesar, 32, of Siparia Road, Fyzabad, and his fianc? Caryll Kangaloo, 29, were killed on the night of February 21, 1993, after their car slammed into the back of a trailer on the south-bound lane of the Solomon Hochoy Highway near Freeport flyover. Kangaloo was the sister of Appeal Court judge Justice Wendell Kangaloo and daughter of former San Fernando mayor Carlyle Kangaloo. Doorgan and Central Trucking Company Lim-ited are represented by Avery Sinanan, while Singh is represented by Ernest Koylass.

The plaintiff told Justice Gregory Smith in Third Civil Court of the San Fernando Assizes on Friday that her son was a “kind and polite person who did the best he could for his family. He tell me he was going out with his girlfriend. He went to party but I don’t know which party he went to. He was never a drinker,” Singh said. Former principal of St Stephen’s College Clifford De Coteau, who witnessed the accident, said he was a back-seat passenger in a car driving on the right lane, while Ramesar’s car was on the left lane. He said he saw the back of the trailer only moments before the crash but did not notice if there were reflectors on the back of it. He recalled that Ramesar’s car was abreast of the one in which he was a passenger, and “within a flash” the vehicle was wedged under the trailer. “The tail lights were not lighting properly because they were not working that night,” De Coteau testified. Another witness, Joseph Bona, of Carolina Village, Couva, a maintenance and mechanic worker at Central Trucking Company Limited, said the truck which Doorgan  was driving was fitted with headlights, a revolving lamp, two lights on either side of the rear and a light over the number plate, while the trailer had lights to rear on both sides, another over the number plate, and reflectors on both sides. He recalled that hours before the fatal crash, at around 4.30 pm Doorgan drove into the company’s yard and checked the fuel, oil, and the lighting systems of the truck but did not report any problems on the vehicle. Bona testified that the back of the trailer was dusty, adding that was normal during the crop time. The case continues on Monday.

A COUVA man is fighting for his life at hospital after being shot three times on Friday after a cricket fete match in the area. Kenton Legere, 31, of the NHA Housing Scheme, underwent emergency surgery to remove bullets to his head, stomach and shoulder. Police reports said around 10.30 pm Kenton was liming on Majorie Street, Point Lisas, after participating in a fete match at a nearby recreation ground when he had an altercation with three men who then pulled out firearms. Witnesses told police when they  heard three loud explosions Legere slumped to the ground and the men ran off. Legere was rushed to the Couva District Hospital, He was transferred to the San Fernando General Hospital (SFGH) for emergency surgery. Police said he is warded in critical condition.  Visiting the scene were a party of officers led by ASP Rampersad, Homicide Sgt Phillip, Sgt Dookie, and Cpl Corbett.

Prime Minister Patrick Manning has called for an immediate probe into reports of some citizens in East Trinidad being attacked and beaten by so-called members of the Defence Force. In a release issued by the Communications Unit of the Office of the Prime Minister, the incident in question is reported to have occurred in El Socorro on Thursday evening. According to information reaching the Prime Minister, residents complained that a contingent of men dressed in “ski-masks” and transported by vehicles which appeared to be army trucks with their licence-plates covered, descended on them and began assaulting them. They alleged that a home in the area had been burglarised. Manning announced yesterday that based on these preliminary reports, he has called on the Minister of National Security Senator Howard Chin Lee to launch an investigation into the matter immediately, and to report his findings to the Prime Minister by today.

The Prime Minister stated that his Administration has absolutely no intention of tolerating any instance of lawlessness by anyone, “and even much less so by those who are charged with the very responsibility of upholding and enforcing the laws of our land.” He said: “Any such occurrence will be met by my Administration immediately seeking the fullest extent of punishment and correction that may be warranted and available.” He added: “May I extend my sincerest regrets to those of our citizens who may have had such a nightmarish experience, and give the assurance to all that wherever we find offences of any sort committed, we will vigorously pursue the appropriate steps of investigation and decisive action.”

An AK-47 was discovered in a yard at La Puerta, Diego Martin on Friday night. Reports revealed that around 10 pm on Friday, officers of the Western Division led by Inspector Cadette and including PCs Williams, O’Neil and others executed a search warrant at a house. Officers searched the yard of the house where they discovered the AK-47. No one was arrested. Police officers believe that the gun was used in gang related murders. The gun will be taken to the Forensic Science Centre on Monday for tests to be carried out by Ballistic Expert, Neil Clapperton.

THE father of kidnap victim Marc Prescott will spend today — Father’s Day in Church saying a special prayer for the safe return of his son who was kidnapped a month ago. Wayne Prescott, an off-shore worker, said that he has faith that he would soon be re-united with his son. Prescott said although many people believe his son would not be returned to him he had not given up hope. And today, he intends to go to church and pray that his boy is safe and would be released soon.The rest of the day, he said, he would spend with his wife Gill, and other relatives. “There isn’t a day that goes by that I do not miss him. When I see him again I will hug him tight and tell him how much I love him,” he added. Marc Prescott, a pupil of San Fernando Boys’ RC, was abducted from his school on May 14. The kidnappers called once and demanded $150,000. Investigators believe that the child was abducted by a relative and was sneaked out of the country. San Fernando CID is continuing investigations.

A MINISTRY of Agriculture surveyor working in a Moruga forest was shot after triggering a trap gun, police said yesterday. Nearly 50 pellets were said to be lodged in the right hip, forearm, and hand of Phali Singh, 53, of Windsor Park, California. Reports said around 1.30 pm Singh and three other ministry employees were some three miles into the Moruga forest surveying a piece of land on Phillip Trace off Blas Cha Cha Trace, when Singh accidently discharged the gun set on the ground. Singh’s co-workers rushed him out of the forest and took him to the Barrackpore Police Station where the officers contacted the  Emergency Health Services (EHS) to take Singh to the San Fernando General Hospital. Singh was admitted to Ward Seven in stable condition. PC Lawrence Suphal of the Moruga Police Station is continuing inquiries.