Former National Infrastructure Development Company limited (Nidco) president Dr Carson Charles yesterday condemned the Government for claiming monies are still owed to international contractor Constructora OAS for its role in the construction of the Point Fortin Highway extension and that a clause was removed from their contract.
He made the comment during debate on the 2024 Budget in the Senate, in an apparent response to Prime Minister Dr Keith Rowley's claims at the opening of the Archibald De Leon Highway, an extension of the Solomon Hochoy highway to Point Fortin, which was started by OAS before it forfeited the contract after the Brazilian company filed for bankruptcy and then left T&T.
Dr Rowley had said the state may still have to pay over a billion dollars to the former contractor due to a clause that was removed from the contract during the tenure of the People’s Partnership government.
Speaking at the opening of the highway on October 15, Rowley said, “If one day some judge drinks a babash and decides to rule in OAS’ favour in this matter, against all that I have told you here, it would mean you, your children, your grandchildren and your great-great-grandchild will have to find over $1 billion to pay OAS only because a clause was taken out of the contract.”
Filling in as a temporary senator for Damian Lyder yesterday, however, Charles, who was Nidco president during the start of the project, denied that OAS is still owed over a billion dollars.
Charles said, “You (Govt) know full well no clause was removed from the contract. Addendum did not remove any clause. I've said it over and over what happened. No clause was removed. No clauses were actually removed. What happened was, there were consequences to entering negotiations and to deciding that you’re going to continue with the works. There are obvious consequences to that, so it’s not a simple matter of removing a clause.”
He added, “Stop saying that we overpay. We paid exactly for the work that was done. OAS is not any company that we were all in love with because we have no idea who they are, how they got here.
“At no time was OAS overpaid. Why you keep on saying that they were overpaid $5 billion and the job only reach half when that is not true, when the total amount of money ever received on the job was $5.1 billion. Half a billion gone for acquisition... How could OAS get that when that's all the money that was received. Why are you making these things up?”
Charles said up until 2015, he was able to oversee 61 per cent of the highway's completion and only the best consultants were hired to work on the mammoth project.
As a result of this, he knocked Works and Transport Minister Rohan Sinanan for taking all the praise for the project when the majority of the work was done under the PP government. He said Sinanan was praising himself for putting in the doors and windows in a house built from foundation up by someone else.
Admitting, however, that Nidco did not do everything right when it came to working alongside OAS, Charles said he found undertaking to complete such a large project within four years was ambitious.
He also stressed that there were consequences for the way in which someone decides to terminate a contract.
He said, “I’m not saying what we did was perfect. We were faced with a unique situation. The first ever in this country to manage a project of this magnitude in four years… There are ways to terminate a contract. If you terminate the contract by first starving the contractor of money and after he ain’t get no money and he can’t work, you could get to terminate for non-performance, then you could probably estimate what could happen after that. I don’t have to say what could happen after that," Charles said.
"But I could tell you, I was there until December 2015, and we did not get a red cent from no administration for the highway. I doubt very much they got any money after I left, so I don’t think the contractor was paid.”
He also called on the Government to say when it will complete the rest of the highway project, including the extension from Penal to Mon Desir.
According to PM Rowley, in September 2015, the People’s Partnership reaffirmed its desire in writing to continue the highway contract with OAS against the Nidco consultant’s advice. As such, Rowley said it entered into an agreement with OAS called Contract Addendum No 2, giving up its right to terminate and the contractor cannot be liable to the state.
Rowley said in 2016, Nidco, then under the stewardship of the PNM, terminated the OAS contract on the advice of the engineer. The project was then given to several local contractors.
Last year, an arbitration panel ruled that Nidco was wrong to terminate its contract with OAS because it believed OAS abandoned the project in 2015. The matter is still pending.
