radhica.sookraj@guardian.co.tt
As it emerged yesterday that the Government is now owing $852 million to bankrupt Brazilian firm OAS Constructora, Prime Minister Dr Keith Rowley has called on Police Commissioner McDonald Jacob to investigate who signed an addendum to the OAS contract allowing the firm to walk away with the near $1 billion.
Speaking at a People’s National Movement meeting in Arima last night, Dr Rowley launched a scathing attack against Opposition leader Kamla Persad-Bissessar, saying three days before the United National Congress lost the 2015 election, an addendum was added to OAS’s contract with the National Infrastructure Development Corporation (Nidco) which robbed the country of money when the Brazilian firm became bankrupt.
“The contract documents had clauses in it that protected the country against bankruptcy. There was one clause, 152E, which said if the contractor is insolvent or goes bankrupt, the bonds the contractor put up go to the State. But they (UNC) did something to allow the contractor to go away with the money,” Rowley charged.
He said when the PNM won the elections on September 7, 2015 and got into office, it went to the court in a bid to get the addendum declared null and void.
“We went to court and argued that this behaviour was not a reasonable action and what happened was an attempt to defraud the State. It was agreed that we should get the bonds and that is how the highway is being built,” Dr Rowley revealed.
However, he noted that recently, a ruling from the tribunal has now mandated Nidco to pay OAS a total of US$126 million (TT$852 million).
The Prime Minister said the contractor is now seeking arbitration.
Blaming the UNC for changing the contract to benefit the contractor rather than the country, Rowley said this should be a matter for the police.
“I want the Commissioner of Police to go into Nidco. I have instructed the Minister of Works and Transport to instruct Nidco to cooperate fully with the police so the country can determine under whose hand and direction this travesty took place,” Rowley stated.
He added, “You could imagine what we could go with $852 million that belongs to us that they gave away for love and affection? The contractor is going to arbitration and we will only know our fate when the arbitration decision comes in.”
He also pointed to the silence of the UNC when OAS Constructora declared bankruptcy on March 31, 2015.
“In March, the contractor goes bankrupt and in April, May, June, July August, the UNC did nothing to protect the public money,” Rowley said.
“Nidco cannot defend itself because it has waived such rights because of the terms of the addendum which was added on the 4th of September 2015. That was the last working day that Kamla and UNC were in government. The UNC removed the clause and allowed the contractor to go away with $1 billion,” he added.
The Prime Minister said while Persad-Bissessar has been maligning his ministers, including Faris Al-Rawi, Stuart Young and now Foster Cummings, she has not responded to the injustice involving OAS.
“If there was ever a case to be made for misbehaviour in public office it’s the person who authorised the removal of that clause which is now costing the country $852 million,” Rowley said.
He added, “I call on the Commissioner of Police tonight to go into Nidco and find out by what authority and under whose authority that clause was removed. I have been raising this matter for years and nobody at the UNC will ever respond. Yet they’re calling on people to march. Every day they have complaints. You know what we can do with $852 million?” he asked.
OAS Constructora was hired by the UNC to build the $7.2 billion Point Fortin highway. In April 2015, Constructora OAS’s parent company, Grupos OAS in Brazil, filed for bankruptcy after its access to financing was severely restricted by a corruption investigation at Brazilian state-owned oil company, Petrobras. By December 2015, OAS demobilised from its sites. Construction materials were left abandoned and over 860 workers did not get severance pay.