Senior Reporter
derek.achong@guardian.co.tt
The People’s National Movement (PNM) has made good on its pledge to resuscitate its legal action over the Government’s termination of over 300 Community-based Environmental Protection and Enhancement Programme (CEPEP) contractors.
Last Thursday, lawyers connected with the Opposition filed a lawsuit and an associated injunction application hours after they served the CEPEP Company with a pre-action protocol letter threatening legal action over the termination of contractors on June 27.
However, the action was withdrawn the following day after CEPEP’s lawyers, led by Anand Ramlogan, SC, responded and rejected their complaints over the terminations.
While no reason for the decision was initially disclosed, it was reportedly based on the fact that Stephen Samuel’s Contractors Limited, under whose name the lawsuit was filed, had been previously struck from the Companies Registry.
Yesterday, the party’s legal team, led by Larry Lalla, SC, filed an almost identical claim on behalf of Eastman Enterprise Limited, another Laventille-based general contracting company.
The lawsuit and an associated application for injunctions to stay the terminations and prevent CEPEP from hiring replacement contractors pending the outcome of the substantive case came up before Justice Margaret Mohammed.
Guardian Media understands Justice Mohammed set deadlines for the filing of evidence and submissions in relation to the preliminary application. She is expected to consider the application next Friday.
Arouca/Lopinot MP Marvin Gonzales highlighted the new case at a PNM media conference in Port-of-Spain yesterday.
“We look forward to the outcome of today’s proceedings and we hope to get an outcome that will be in defence of the 11,000 citizens who are now placed on the breadline and do not know how they would get an income,” Gonzales said.
He also took issue with current Government members gloating over the outcome of the initial case and for criticising the PNM for offering legal representation to the affected contractors and a reported 10,500 workers.
“These are the kind of callous and irresponsible statements that we are hearing from leaders in the Government, describing hard-working citizens as ‘ghost workers’ and what the PNM is doing is defending ‘ghost workers’ and what have you. I believe that is very unfortunate,” he said.
About the contractor’s case
According to the court filings, obtained by Guardian Media, Eastman Enterprise started its work with CEPEP under a one-year contract signed in September 2018.
The contract was renewed for two years and then for another year before the parties entered into a new contract in October 2022. The following year, the company’s contract was extended to September 2026.
On April 23, days before the General Election, the contract was modified and extended to September 2029.
During the course of the contract, Eastman received a management fee ranging from $21,999.62 to $23,947.90 per month, while its 29 employees were paid directly by the State company.
Its lawyer Kareem Marcelle, who also serves as Laventille West MP, claimed CEPEP was required to immediately pay the company for one month’s service, as it sought to terminate based on Clause 15 of the contract without giving notice.
The clause allows CEPEP to terminate by giving 30 days’ notice or making a payment in lieu of notice, if the company fails to meet its contractual obligations or performance assessments conducted by CEPE officials.
Marcelle pointed out that while CEPEP CEO Keith Eddy promised that payment would be processed and dispensed when he notified the company of the termination, the payment should have been made together with the termination letter.
“It is settled law that for payment in lieu of notice to have effect, the outstanding sum in lieu of notice must be paid simultaneously with the said service of notice,” Marcelle said.
Marcelle also suggested that the clause is unfair and in breach of the Unfair Contract Terms Act 1985, as it gave CEPEP too wide of a discretion to terminate.
Marcelle sought to highlight the severe effects of the terminations on Eastman Enterprise and the other contractors, as well as those employed by them on CEPEP’s behalf.
“The damage that has been done to the workers of the Claimant, as well as that of all the other contractors (as much as 10,000 persons) is something that cannot be easily quantified,” he said.
“Many of the said workers are single parents. They have young children, some of whom are ill, who they work hard for in order to provide for them,” he added.
In a statement issued yesterday, PNM PRO Faris Al-Rawi suggested more litigation from other contractors was forthcoming.
“The PNM will support other forms of action as may be advisable in the days ahead and will diligently seek to defend against the callous acts of the UNC Government, who seem to have nothing to offer other than contempt for ordinary and hard-working people,” he said.
Speaking on the terminations on June 29, Public Utilities Minister Barry Padarath, under whose ministry CEPEP now falls, claimed Government took the action based on concerns over alleged corruption and mismanagement.