Transport Minister Devant Maharaj has written to the Integrity Commission about a board member of the Airports Authority of T&T (AATT) who has allegedly awarded contracts to his own companies. Maharaj made the revelation yesterday during an interview with the media following the signing of a memorandum of understanding (MOU) between several Caribbean Airlines Ltd (CAL), and the University of T&T, at CAL's head office in Piarco.
Other parties included in the MOU are Metal Industries Company Ltd, National Helicopter Services Ltd and the T&T Civil Aviation Authority. The core objective of the MoU is to enhance the supply of training and education available to those in the aviation sector.
Maharaj said: "It was brought to my attention that this particular board member at the AATT, with two other members and the chairman, deliberated upon a human resource contract in one of its meeting, regarding the Air Jamaica and CAL merger, whereby the said board member received three contracts."
He said the contracts, which were awarded from 2006 onwards at a cost of $4 million, were given to the board member in his name and two other companies that he owns. The three companies were contracted to conduct human resources consultancy and legal services for the merged airlines.
"Based on the facts before me, I did not see a declaration of interest nor did the board member recuse himself from the deliberation. As far as I have read in the minutes and based on the information, I felt that my legal team had sufficient grounds to refer the matter to the Integrity Commission for consideration," Maharaj said.
Maharaj explained this was a breach of Sections 23 and 24 of the Integrity and Public Life Act which call on persons to be "fair and impartial in the exercise of their duties." Asked if this type of corruption could be a contributing factor to CAL's current debt, Maharaj said, "I have to examine not only this contract, but check other contracts to see which members may have been giving themselves and other companies that might be bogus or they might be directors of."
However, Maharaj said he was willing to apologise if he was wrong. "What appears to be the act of impropriety sends flags in my mind and I say let the Commission have a look at it, to see if any breaches occurred, if not, we apologise for any inconvenience, " he said.
Maharaj dismissed reports in a weekly newspaper about current CAL chairman Rabindra Moonan awarding himself an Audi Q7 as part of his package. "Moonan indicated to me that he never asked for Q8 or Q 9/10 or nothing of the sort, not even a Q6."
During his speech prior to the signing of the MoU, Maharaj said his ministry was moving away from corrupt practices like this and embarking on positive initiatives, such as aviation studies for national development. He said, "Under the past administration, an uncollected debt at the AATT over ten years was left unattended.
"Meanwhile, a CAL chairman was using a private jet to fly to areas where CAL operates for company business where he charged CAL a fee of US$6,000 per trip-a grand total of US$28,000. "Why this happened when one can jump on a first-class flight on CAL to go to Jamaica? Look how far we have come from these backroom deals, where we are now focusing on national development."
Arthur Lok Jack's response
Former CAL chairman Arthur Lok Jack says he has no problem admitting he used a private jet to conduct business on behalf of CAL. Speaking to CNC3 yesterday, LoK Jack said he used a private jet on five occasions to travel to Jamaica to attend to urgent matters.
He said the negotiations for the Air Jamaica acquisition were breaking down and he needed to travel to Jamaica immediately to intervene. He said the jet was used at an approximate cost of US$5,000 return. On many occasions, Lok Jack said, he travelled with executives, which meant the cost was then much different from a commercial flight.
He said it was more than worth it, considering the urgency of the issues which needed to be resolved in the national interest. The charges, he said, were only for fuel, landing fees and catering.
Meanwhile, Lok Jack told the T&T Guardian the current administration should stop clutching at straws and focus on CAL's route system to try and stop the haemorrhaging of cash.
