Government officials who ignore the law in awarding multi-million-dollar contracts should be penalised, High Court judge Frank Seepersad has said.He suggested that the Central Tenders Board Act and regulations should be amended to this effect.Seepersad made the call in the Port-of-Spain High Court yesterday, while delivering a judgment in a lawsuit over a $5 million government contract for works on the San Fernando Harbour Project.
"There is no penalty for default by permanent secretaries or ministers who do not follow the procedures laid down in the act, nor is there any provision for the imposition of penalties and deficiencies ought to be addressed," he said.Seepersad noted that the procurement legislation was passed by Parliament to promote "transparency and fairness" and to prevent state officials from awarding contracts on "an arbritrary or self-serving basis."
"If the spirit and tenor is rigorously followed, many of the unfortunate allegations of kickbacks and financial impropriety that have been levied against successive governments would be curtailed," he said.In his 28-page judgment, Seepersad ruled that the permanent secretary in the Ministry of Works did not have the authority to enter into the contract with the company, Trinsalvage Enterprises Ltd.
"Once the total value of the works or services exceeds $1 million then the Central Tenders Board, in accordance with the provisions of the act, has the sole and exclusive authority to act for and in the name of and on behalf of the Government," Seepersad said.Despite ruling the contract illegal, Seepersad said the company was still entitled to be paid for the work it completed on the project.
"It was clear that the claimant did not agree to undertake same free of charge and the value that can be attached to same is significant," Seepersad said.He said the company should be compensated, as the State had been unjustly enriched and had directly benefited from the work done during a four-year period, which ended last year.
As part of his judgment, Seepersad ordered that both parties should appoint an independent expert within 28 days to ascertain the value of the work the company had done . Once the valuation is completed, the State will have 30 days to compensate the company.The company was represented by Anand Singh and Mandavi Tiwarie, and Tamara Toolsie and Michelle Benjamin appeared for the State.