No trace of document in $1.8 Billion settlement paid to BK in Haags Bosch dispute — PAC hears
Kaieteur News – The Ministry of Local Government and Regional Development has no trace of the $1.8B settlement paid to BK Contracting firm following a row it had with the government for missing targets at the Haags Bosch landfill development project.
BK contracting firm was part of a project to develop the landfill site at Haag Bosch.
The issue came up before the Parliamentary Public Accounts Committee (PAC) on Monday after a team from the Ministry of Local Government and Regional Development were asked to provide documentation for the settlement. Permanent Secretary (PS) of the Ministry, Prema Roopnarine told the PAC that even though the amounts were paid in full, she could not locate any documents relating to the settlement.
The payments were negotiated in 2017 as part of an out-of-court settlement between the Ministry of Legal Affairs and the BK firm. The company had filed a lawsuit in 2015 claiming it was wrongfully terminated from the Haags Bosch Landfill development project.
The project was funded by the Inter-American Development Bank (IDB) and supplemented by state funds. The court matter concluded with Chief Justice (ag), the late Ian Chang, ruling in favour of the company. The parties had reached an out of court settlement. However, when faced with questions before the PAC about documentation, even former PS of the then Ministry of Communities, Emil McGarrell could not provide the proof of the payment.
McGarrell who joined the meeting virtually, explained that contract for BK contracting firm to develop the landfill was signed under the Donald Ramotar Administration but the out-of-court settlement happened after the A Partnership for National Unity +Allianmce For Change (APNU+AFC) government took office. According to McGarrell, the payments in the settlement were not handled by what was known then as the Ministry of Communities but the monies were disbursed by the Legal Affairs Ministry, which was, at that time, headed by Attorney General, Basil Williams S.C.
In this regard, McGarrell said that as PS he, too, never saw the transaction documents. “All I can say is I believe that they can be sourced from the Legal Affairs Ministry,” the former PS told the committee during the session. But the response was not satisfactory to some members of the committee, who questioned the authority and regulations under which the monies were processed via the Legal Affairs Ministry.
Minister of Public Works and PAC member, Bishop Juan Edghill lamented the fact that even years after the payments were made, the settlement document could not be found much less presented to the PAC for scrutiny. “Under whose authority was it done?” Edghill asked. The question prompted Opposition member of the PAC, David Patterson, to follow up with similar queries. PAC government member, Gail Teixeira also made queries about the Cabinet decision which paved the way for the funding to compensate the company. Attorney Sanjeev Datadin, who represents the government ‘s interest at the PAC also asked for the minutes of the settlement meeting, as well as the settlement contract.
Given the list of queries left unanswered, the PAC requested that PS Roopnarine furnish the committee with several documents within the next two weeks. These would include the initial application filed in the court, evidence of the court hearing on the issue and evidence of negotiated settlement. PS Roopnarine was also asked to submit any additional documents that may be relevant to the issue and can help to answer the PAC’s questions.