BK settlement is plain “criminal,” someone must be getting kickback

Aug 14, 2016 News

‘… This should be among the first cases taken on by SARA’ – Former AG Nandlall

“The case was just filed. There was no trial, not a head of evidence was led. The government has proof of the substandard work yet they were afraid of losing. That sounds like a ‘nancy story. Nobody gives up on litigation that easily unless there are extraneous matters influencing the situation.”- Nandlall
Former Attorney General (AG), Anil Nandlall is convinced that the out of court settlement that the coalition government made with BK International in relation to the Haags Bosch dumpsite is not as straightforward as the current government is making it out to be. He insists, “There is something sinister about this entire deal.”
The Member of Parliament said that the government had a strong case against BK, so there was “absolutely no need to settle.”
“I still cannot come up with a legal reason why government should have moved to settle out of court, and the Ministers have not been able to give me an acceptable reason,” said Nandlall.
Nandlall said that the settlement is one that needs to be investigated, as there seems to be much more to the story than what has been made public.
The former AG said he noted the current AG’s announcement that the State Assets Recovery Agency (SARA) will go after all Ministers – past, present and future – but insisted that that was not enough.
“The Agency should be looking it all levels of corruption. Nandlall stressed, “The BK settlement should be one of the first cases that is investigated, because over a billion dollars belonging to the State was gifted to BK. Someone in public office must be benefitting.”
BK International’s contract to manage the dumpsite was terminated last year, resulting in the contractor’s move to the court. Having settled out of court, it has been agreed that a total of US$5.7M (approx. G$1.1B) will be paid in three parts to the company.
NUMEROUS LETTERS TO THE COMPANY
Nandlall recalled a series of events, trying to state why government should not have settled.
The former AG told Kaieteur News that BK was in breach of its contract since 2013. He said that numerous letters were sent to the company, calling for rectification of the several breaches identified.
“Several meetings were held. Some of the meetings were even chaired by former President Donald Ramotar as the government tried to get the breaches ratified,” said Nandlall.
“However, these efforts proved futile. The situation got so bad that the funding agency—IDB—said that it would no longer fund the project.”

Former Attorney General, Anil Nandlall

Nandlall said that it all became overbearing, so the PPP/C government terminated BK’s contract.
BK then challenged the termination of the contract. By that time there were elections and the government changed. The court subsequently ruled that the termination of the contract was unlawful. The court did not order the payment at that time.
Present AG, Basil Williams then appealed that ruling.  However, Nandlall noted that instead of prosecuting his appeal, Williams decided to settle the matter.
When the government changed Minister of Communities, Ronald Bulkan, and Minister of Public Infrastructure David Patterson, visited the Haags Bosch Landfill site. Nandlall said that the two created “great furor” about the substandard work done by BK International.
“But, rather than sue the contractor for substandard work, they (Govt.) rewarded him with over a billion dollars for the same shoddy work that they complained about,” said Nandlall.
The MP said that he just cannot buy the excuse given to the House on Monday last that the government settled because it was afraid to lose its appeal.
“Every lawyer knows that suing doesn’t mean winning. The fact that legal proceedings have been filed does not mean it will succeed. It also does not mean that the plaintiff will get the amount of damages claimed.”
Nandlall said that at the last Parliamentary Sitting, while in the Committee of Supply, “I asked the Minister three times if he was satisfied with the quality of work done by the contractor. He refused to answer.”
Nandlall also recalled that AG Williams told the House that 26,000 people were being affected by the Haags Bosch dumpsite. He said that the work was so atrociously done and he blamed the PPP for not fixing it.
“But, he had an opportunity to sue the contractor for the same atrocious work that he is complaining about. What he did? He rewarded the contractor,” said Nandlall.
The former AG continued, “The case was just filed. There was no trial, not a head of evidence was led. The government has proof of the substandard work yet they were afraid of losing. That sounds like a ‘nancy story.  Nobody gives up on litigation that easily unless there are extraneous matters influencing the situation.”
Nandlall said that the PPP/C government took a position that BK was in breach of its contractual obligations.  ”We would have sued BK for breach of contract. They ended up gifting this company that has breached its contractual obligation.”