Prime Minister Dr. Keith Rowley says, many pertinent questions are left unanswered by the United National Congress over Brazilian contractor, OAS that initially got the contract to design and construct the San Fernando to Point Fortin Highway, over which taxpayers lost billions of dollars.
00:00 Prime Minister Dr. Keith Rowley says there is an attempt to push
00:03 misinformation on the Parliament's records as he mentions a paper laid in
00:08 the lower house called the saga of the Sir Solomon Hojo extension 2.14
00:13 project from 2010 to 2023 and accounts and execution of the largest
00:19 infrastructure development project implemented in Trinidad and Tobago. This
00:24 document has been referred to a joint select committee on land and physical
00:29 infrastructure. While the Prime Minister has given the House of Representatives
00:33 the government's account of what transpired. According to Dr. Rowley
00:38 although the plan for the San Fernando 2.14 highway was formulated under
00:42 Patrick Manning led PNM administration the bids that came in as the general
00:47 election of 2010 was approaching were way too high when compared to the 3.6
00:52 billion dollars estimated by the engineer and a review that was supposed
00:57 to take place did not occur because of a change in the reins of power. Dr. Rowley
01:02 says the Kamloopsad-Bissessa led People's Partnership administration
01:06 proceeded to contract Brazilian contractor OAS through NIDCO for the job
01:11 at a cost of 5.2 billion dollars 1.6 billion dollars more than the engineers
01:17 estimate. This contract he says commenced with a meeting between a minister of
01:22 cabinet and OAS officials in Johannesburg South Africa amid the FIFA
01:27 World Cup which also took place in that country. No member of the UNC government
01:32 has ever acknowledged that this meeting took place nor has any one of them ever
01:39 attempted to explain what was the purpose and outcome of this transatlantic
01:45 secret meeting on the eve of an award of this multi-billion dollar contract which
01:51 was hurriedly wrapped up here in Trinidad and Tobago after the World Cup.
01:55 Dr. Rowley says FIDEC yellow book terms and conditions to guide such contracts
02:00 are standard and used internationally and should only be amended if it is
02:05 vital to do so. As such the Prime Minister outlines that FIDEC should
02:09 have applied to the OAS contract but it was amended by the UNC to allow for a
02:15 20% advance payment to OAS instead of 10% amounting to some 856 million dollars
02:22 and a sum of 236 million which was supposed to be deducted from the advance
02:28 was never subtracted. So even before the construction began, Madam Speaker, before the ground was scratched, the former government provided OAS with over 1 billion dollars of tax pay off funds.
02:45 The UNC government chose to pay OAS and others via cash transfers from the Ministry of Finance.
02:54 According to the Prime Minister, by March 2015 after OAS was paid over four
02:59 billion dollars with about 49% of the works completed and defaulted on paying
03:05 workers, it eventually filed for bankruptcy in Brazil which could have
03:09 allowed a contract with the PP governments to be terminated in order to
03:14 protect the public purse. But on the eve of the 2015 general election he says
03:19 another decision was taken against advice from NIDCO where the People's
03:23 Partnership signed an agreement to keep OAS as the preferred contractor for the
03:28 highway waiving any claim of liability against OAS, positioning the state to
03:33 possibly lose 900 million dollars in bonds in the event of the contractors
03:38 bankruptcy. In addition he states sections of the unfinished highway were
03:43 removed from OAS's responsibility with the intention of paying other
03:47 contractors an additional two billion dollars to complete the job.
03:53 Not one of them has ever attempted to provide a plausible explanation as to why they were so
03:58 generous and protective of a disgraced Brazilian contractor. Dr. Raleigh says it
04:04 was his government through NIDCO that terminated OAS and did a drawdown on the
04:09 advance payment and securities to the tune of just over 139 million US dollars
04:15 and after a lot of litigation in foreign courts recouped 970 million dollars.
04:22 The Prime Minister says this money was used in the completion of the 0.14 highway.
04:26 In light of the pending JSC, Dr. Raleigh is calling for the UNC to account to the
04:31 public on the following questions. What was the process and documentation used
04:36 to amend the FIDIC laws for a higher advance payment to OAS and who authorized it?
04:42 What was the purpose and benefit to be gained and who did it favor?
04:48 Who actually carried out these instructions? Five, what was the role of the Ministry of Works and Transport and the Board of NIDCO,
04:55 the consultant and the management in effecting the amendment and its
04:59 consequent waiver? Oropuch East Dr. Rudal Munilal was allowed to pose a
05:04 question after the Prime Minister's statement.
05:07 Are you aware that a 15 member committee comprising PNM government officials met on May 20th 2010,
05:14 four days before general election and recommended that the contract be
05:19 awarded to OAS which had the lowest bid of 5.2 billion and in addition the very
05:25 NIDCO board appointed by the then PNM government hosted NIDCO on the 25th of
05:31 May 2010, hours after general election to indicate that they were the preferred
05:36 bidder of the People's National Movement government.
05:41 That was one question.
05:43 Thou doth protest too much. Tell that to the committee of Parliament.
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