State vs Contractors - Bid rigging at EMBD, EFCL & HDC

[The_Honourable]

$1.3b lawsuit trial starts

Mega-contractor takes state to court



Local mega-contractor NAMALCO Construction Services Ltd’s multi-million lawsuit for $1.2 billion in unpaid bills has started in the Port of Spain High Court.

The case is being heard by Justice Ricky Rahim and yesterday, NAMALCO’s lead attorney Alvin Fitzpatrick, SC, presented his opening statement setting out his client’s contentions as well as its response to EMBD’s defence and counter-claim. Before Rahim is NAMALCO’s claim for payment, while there is a counter-claim by the EMBD, which is defending its decision not to pay out the interim certificates.

In the lawsuit, the company which is based at the Labidco Industrial Estate in La Brea, is claiming that the damages being sought represent unpaid fees for contracts performed for the EMBD. The company contends it was not paid despite completing projects and having them approved by an independent engineering company, as stipulated in its contracts with EMBD.

In its defence, the EMBD is contending that the company’s invoices were inflated and fees have to be reduced to take into account deficiencies in the quality of the work. The company also alleged a “conspiracy” in the award of the contracts and intends to argue that the contracts were not authorised by EMBD’s board, but by the CEO at the time, who is alleged to have breached his fiduciary duties. EMBD has contended that NAMALCO was aware of this.

The EMBD is mandated to manage and develop agricultural land held by the state across TT. But Fitzpatrick said NAMALCO is denying EMBD’s reasons for non-payment. He said the EMBD failed to act reasonably and there was no basis to suggest NAMALCO knew of any breach of fiduciary duties on the part of the then EMBD chief executive.

Fitzpatrick said EMBD was obligated to pay under the terms and conditions of the contract and if there were any concerns or challenges, a dispute-resolution clause in the contract should have been invoked.

This was not done and this fact, Fitzpatrick said, prevents the EMBD from now coming to court with its counter-claim.

“The court has no jurisdiction until that step has been exhausted,” he said in his opening statement, adding that the EMBD’s failure to follow the dispute-resolution process was “fatal” to its case.

He also said if the engineers – the EMBD is claiming the interim payment certificates were overinflated – were negligent, NAMALCO had nothing to do with that.

Also appearing for NAMALCO are attorneys Roger Kawalsingh, Shiv Sharma and Javid Mohammed. The EMBD is represented by two British Queen’s Counsel, Jonathan Acton Davis and George Hayman. Also representing the company are attorneys Colin Kangaloo and Danielle Inglefield.

Representing Atlantic Project Consultants Ltd as an ancillary defendant are Douglas Mendes, SC, Devesh Mararaj and Kandace Bharath-Nahous. Attorneys Anand Singh and Jayanti Lutchmedial represent the other ancillary defendants in the case.

Testifying yesterday for NAMALCO was the head of its construction department, Lenny Sookram. Originally, the court had set aside four weeks for the trial.

NAMALCO said it entered into contracts for six construction projects at Mahaica, Brickfield, Cedar Hill, Roopsingh Road, Petite Morne and Picton, Monkey Town to do infrastructural work.

Source: https://newsday.co.tt/2019/11/06/1-3b-l ... al-starts/

[pugboy]

The winners as usual will be the lawyers with taxpayers footing the bill

[The_Honourable]

Yes i'm aware as we in election season, old case popping up which might eventually lead to no arrests.


Arrests coming soon in $549M EMBD Case



Mark Bassant - Lead Editor - Investigative Desk

The Anti-Corruption Investigation Bureau (ACIB) has cracked the case involving the pillaging of taxpayers’ money through a fraudulent scheme involving the Estate Management and Business Development (EMBD) company in the lead-up to the September 2015 general election and arrests are imminent.

Over the last year and a half, officers from the ACIB with assistance from a UK prosecution and investigations firm–Edmonds Marshall McMahon–have been able to piece together complex financial information which forms part of the criminal investigation being pursued by the T&T Police Service (TTPS).

A document obtained by Guardian Media revealed that a prominent politician “orchestrated a scheme that resulted in significant funds being secured and spent by the EMBD six weeks before the general election on September 7,” amounting to a staggering $549 million, just over half a billion dollars.

Investigators believed that this politician was able to implement the fraudulent scheme with the assistance of a former senior employee of the EMBD “who has now fled the country” and his “close acquaintances,” the CEOs of at least four construction companies, “who in turn engaged the assistance of subordinates.”

Investigators have painstakingly mapped out the modus operandi of the major players, several individuals and companies, who helped to facilitate this scheme from the embryonic stages to fruition.

The modus operandi, people involved

Close to five years ago, this was the modus operandi of the elaborate scheme involving a politician, prominent businessmen, advertising heads, security services, special advisers and communications specialists:

Investigators broke down the key players and their roles in the scheme.

*First, there was the controlling mind: Someone that has significant control over others

*Second, the subordinate: Someone who is under the control of a controlling mind

*Third, the launderer: Someone whose principal involvement is to receive and dissipate the criminal proceeds

How the scheme went down

The man termed “the boss” by investigators, with the assistance of the former EMBD senior employee and a contractor, concocted a series of road upgrade projects, known as C1-C10 roads. Investigators revealed these projects “came out of the blue” and “a note to the Cabinet seeking approval for the works and funding had been drafted long before an EMBD engineer had visited the site.”

“The boss” instructed the senior EMBD employee to add the tenth road to the draft note which was sent to the Cabinet on the basis that “one particular contractor wanted to do the job.” Investigators stated that no other justification was provided for this job and the senior EMBD employee obliged.

“The boss” presented the note to Cabinet and the works and funding was approved on April 30, 2015, for the sum of $330,375,000 (excluding VAT). Investigators discovered that these projects did not form part of EMBD’s scope of work and, therefore, became additional funding.

Companies owned by “the boss’s” close acquaintances were later invited to tender for the road contract.
By the time the tender had come around, EMBD’s estimates for the cost of the roads had been arbitrarily inflated to $416,340,445 by a senior employee at the EMBD. This meant that bidders could now bid higher, the document explained.

Bidding companies colluded with each other to predetermine who would win which road. During the lengthy investigation, police found evidence of full bid information for the C7 and C8 roads, dated before the bids being submitted, on a computer of one of the companies in question.

The contracts were awarded to the companies with bids that were “suspiciously close to the estimates.” At least eight of the ten bids were within two per cent of the estimates.

Once work on the roads began, it is alleged the companies submitted fraudulent claims for material not used or work not done. In one instance a company claimed $23 million for Guaracara boulders that were not used. Another company double-counted and overclaimed a similar amount for excavation work linked to road widening that was never done.

A senior EMBD employee apparently signed off on these claims. Investigators believe he “must have been complicit.” Another employee questioned the claims made by two other companies but was told by another senior EMBD employee that he had to sign off the claims because “the boss” had ordered it. An initial international expert report has confirmed the likelihood of this fraud.

“The boss” needed the claims signed off as quickly as possible so the drawdown of the funds could be obtained from the Ministry of Finance, the investigators stated.

On August 25, 2015, “the boss” instructed an official to submit the claim to the Ministry of Finance to make interim payments to the companies in the sum of $179,626,481.63 (TT).

The Ministry of Finance, which initially said there was no money to meet the claims, approved $100,000,000 on September 1, 2015. The following day, the senior at a particular company, after receiving instructions from “the boss” as to how the $100m should be spent, sent a message to the senior employee at the EMBD. Investigators discovered that “the boss” would regularly instruct the senior EMBD employee who should be paid.

“The boss” was able to help secure additional funding for the EMBD through a $400 million loan from First Citizens Bank. The investigators revealed that in total–between August 7 and September 3, 2015–the EMBD received funding to the tune of $549 million. By the close of the business on September 4, all the money had been spent. Four companies received a total of close to $400 million. Other contractors received nothing.

The deal

Investigators detailed that in exchange for winning C1-C10 contracts, having their fraudulent claims signed off and being well remunerated, “it is suspected that these companies agreed to pay kickbacks out of the proceeds, with these being either to fund (party name called) 2015 election campaign or to reward “the boss” and his friends.”

According to the forensic investigation, a paper trail revealed that “about $60m of unexplained payments has been identified to companies or individuals that appear to have no commercial connection to the companies.” In one instance, millions of dollars were paid to low-level employees in one of the companies that benefited from the fraudulent scheme. The document stated that “as the money trail is followed the amounts converted to cash increase.”

The lengthy probe also found that apart from the enrichment of certain companies, a former senior EMBD employee who cowered to “the boss’s” instructions also benefited from payments amounting to over $1 million.

Sources told Guardian Media that the money trail has led to real estate properties that were purchased in London.

During the year-and-a-half-long investigation, the ACIB conducted searches of several companies across the country. They were able to collect digital data from EMBD and other state entities. They also obtained several production orders covering at least 24 account holders and information on close to 50 bank accounts.

The ACIB was also able to obtain production orders from two telecom companies and call and message logs for at least 12 key phone numbers.

They have also obtained witness statements from EMBD staff, police officers and cybercrime officers, Central Bank, T&T Mortgage Company, Price Waterhouse Coopers and a quarry company.

CoP responds:

Commissioner Gary Griffith confirmed that a UK firm with experience was needed to assist in the EMBD matter and other matters like LifeSport and other pending cases. But he did not give any further comments regarding the status of the EMBD case.

“Obviously, in any major investigation, I cannot give specific details. I can say there is an ongoing investigation pertaining to questionable activities at the EMBD from several years ago. As in other major investigations, as in past investigations, all the matters before it must be thoroughly investigated. I have done Emailgate, Calabar Foundation the plant-like substance at the former prime minister’s residence and others.”

Source: https://www.cnc3.co.tt/arrests-coming-s ... embd-case/

[K74T]

UNsCheme

[mero]

"arRReSts COmiNg sOoN"

[Lou Screuz]

[VII]

That's what finances all dem big car allyuh like to drop allyuh draws for..

All dem business whizzes nothing but thieves and hustlers..

Really hope we get justice here..

[rspann]

The same contractors getting multi million contracts from this govt . Nothing has changed.

[VII]

The same contractors getting multi million contracts from this govt . Nothing has changed.

Yep but its the outdated procurement process and legal terrorism that facilitates that..

[pugboy]

and at contractor xmas party govt members on both sides drinking and eating good

[Dizzy28]

Remember when Ramhit win a PNM BMW or Kallco get the single largest infrastructural project (at the time) under PNM
Pepperridge farms remembers!!!

All this is smoke and mirrors to fool the foolish

[VII]

This one isnt..this one is going all the way and went all the way to London,smoke and mirrors don't got that far.

Each case is independent of the other..And a flawed procurement process thrives with such loopholes..

Men making jail and losing assets in this one,taxpayers would take a hit on that big project though..

[De Dragon]

This one isnt..this one is going all the way and went all the way to London,smoke and mirrors don't got that far.

Each case is independent of the other..And a flawed procurement process thrives with such loopholes..

Men making jail and losing assets in this one,taxpayers would take a hit on that big project though..

Who stole money has to be held accountable, BUT when are the investigations going to look at THA, Rohan, Bamsee Squeeezer, and Weavy Buysperm? Where are the similar type forensic investigations into JUHN Scarfy "friend" AV?

[zoom rader]

Meanwhile arse wari collects his rents.

Value for money

[Country_Bookie]

Arrests coming soon? Guess this means by 2025 we should expect the preliminary inquiry to begin. By 2030 they should be committed to stand trial. Gimmickry for another 2 elections.

[zoom rader]

Arrests coming soon? Guess this means by 2025 we should expect the preliminary inquiry to begin. By 2030 they should be committed to stand trial. Gimmickry for another 2 elections.

Maybe so,

But as we know the timing of this news is to pump into PNM ppl heads that the other side can't be trusted.

Look how quickly PNM ppl forget Marlene, wiggs & weave Kamilie, Shamfa phone bills, D Smith and the rest of the mob.

[VexXx Dogg]

This one isnt..this one is going all the way and went all the way to London,smoke and mirrors don't got that far.

Each case is independent of the other..And a flawed procurement process thrives with such loopholes..

Men making jail and losing assets in this one,taxpayers would take a hit on that big project though..

I hope so.
White collar crime seems very lucrative in trinidad, especially when it involves public coffers. How much convictions actually take place?

My cynicism in not unfounded, ae?

[De Dragon]

This one isnt..this one is going all the way and went all the way to London,smoke and mirrors don't got that far.

Each case is independent of the other..And a flawed procurement process thrives with such loopholes..

Men making jail and losing assets in this one,taxpayers would take a hit on that big project though..

I hope so.
White collar crime seems very lucrative in trinidad, especially when it involves public coffers. How much convictions actually take place?

My cynicism in not unfounded, ae?

Never happen, it's almost as if there is a quid pro quo to keep convictions at zero.

[Ben_spanna]

Antyhing ever happened to What the name of that guy again, the one with no heart?????
he ever mek ah jail?
And Imps-butt ever paid his court settlement to E Alias????

[ScHoolboySoloQ]

PNM people forgot what went down with Stuarty stepdaughter, Ferrytales, Email-gate, Dragon gas and Petro-gate.

I fed up of this place.

[Dizzy28]

PNM people forgot what went down with Stuarty stepdaughter, Ferrytales, Email-gate, Dragon gas and Petro-gate.

I fed up of this place.

Blank>Everything else

[zoom rader]

PNM people forgot what went down with Stuarty stepdaughter, Ferrytales, Email-gate, Dragon gas and Petro-gate.

I fed up of this place.

Amazing how Redman and Elite don't comment on these ills

[Gladiator]

PNM people forgot what went down with Stuarty stepdaughter, Ferrytales, Email-gate, Dragon gas and Petro-gate.

I fed up of this place.

Don't forget Malcom Jones bredda.... that was the most disgusting mismanagement, skulduggery, thieving and cover-up in Trinidad history.

Worst part is that the money didn't even stay here... it went foreign

[Redman]

Waiting to find out what bearing any of that have on whether this EMBD thing is true,prosecutable and winnable,
What does it say for the elections, and how will this be prevented from happening again?

[De Dragon]

Waiting to find out what bearing any of that have on whether this EMBD thing is true,prosecutable and winnable,
What does it say for the elections, and how will this be prevented from happening again?

The bearing it has is that it exposes the hypocrisy of the PNM and their brainless supporters. Worst yet, it is all pappyshow using State resources. Prosecution of corrupt officials shouldn't be based on party lines. I hope that when the shoe rests on the other foot, you can speak about "bearing" but your track record of looking the other way is already well established, so forgive us if we don't hold our breaths.

[sMASH]

case sounding very culvert invert-ish. contractor wives getting the contracts.
bring arrests, i say.
but then again, ah man held a coup that he lost, and is now a politician.
wonder where on the time line is av drilling.

[Redman]

Waiting to find out what bearing any of that have on whether this EMBD thing is true,prosecutable and winnable,
What does it say for the elections, and how will this be prevented from happening again?

The bearing it has is that it exposes the hypocrisy of the PNM and their brainless supporters. Worst yet, it is all pappyshow using State resources. Prosecution of corrupt officials shouldn't be based on party lines. I hope that when the shoe rests on the other foot, you can speak about "bearing" but your track record of looking the other way is already well established, so forgive us if we don't hold our breaths.

No need to hope...the shoe has been on the other foot...what happened?
In fact we have run out of feet.

Maybe we should be asking why...despite every party running on an anti corruption campaign..no convictions.
Maybe it's quid pro quo
Maybe it's all lies.
Maybe it's the legal framework....

[Premchand1976]

Waiting to find out what bearing any of that have on whether this EMBD thing is true,prosecutable and winnable,
What does it say for the elections, and how will this be prevented from happening again?

The bearing it has is that it exposes the hypocrisy of the PNM and their brainless supporters. Worst yet, it is all pappyshow using State resources. Prosecution of corrupt officials shouldn't be based on party lines. I hope that when the shoe rests on the other foot, you can speak about "bearing" but your track record of looking the other way is already well established, so forgive us if we don't hold our breaths.

No need to hope...the shoe has been on the other foot...what happened?
In fact we have run out of feet.

Maybe we should be asking why...despite every party running on an anti corruption campaign..no convictions.
Maybe it's quid pro quo
Maybe it's all lies.
Maybe it's the legal framework....

Your last sentence is the " correct answer ".

[The_Honourable]

Is how Express throw shade on Guardian (see underlined comment).

WEAK EVIDENCE



There is strong evidence of bid rigging but only circumstantial evidence into other allegations of kickbacks against former government officials.

Charges are therefore hardly imminent.

The Express has been privy to a June 2020 letter which states that the joint investigation by local police and a United Kingdom company has so far netted only circumstantial evidence into allegations that there were kickbacks in the award of LifeSport and Estate Management and Business Development Co Ltd (EMBD) contracts.

UK firm Edmonds Marshall McMahon (EMM) has been contracted by the Trinidad and Tobago Police Service (TTPS) to provide support and training to the Anti-Corruption Investigative Bureau (ACIB) and Special Investigations Unit (SIU) in significant investigations into corruption allegations, into fraud and money laundering, focusing on Caroni Roads, LifeSport, and utilising T&T’s money laundering laws to greater advantage.

In a note to attorney Edward Jenkins QC, dated June 15, 2020, EMM listed their functions and gave a synopsis of “Theories as to Predicate offences underpinning suspicions of money laundering”.

Jenkins has been retained by the Office of the Director of Public Prosecutions (DPP) for advice on several high-profile matters.

In the note to Jenkins, the EMM stated: “The ACIB and SIU require assistance with updating their investigative methods particularly in relation to prosecuting larger matters, specifically with requiring assistance with production orders, document holding and review, searching and dealing with large data sets and creating and following large-scale multi-strand investigative plans. EMM have been asked to provide this.

“Currently, EMM are only contracted to assist the TTPS until 31 July, 2020, therefore the Commissioner has requested that cases be specifically brought to a position whereby EMM can assist with any relevant searches, IUC and case preparation or as many cases possible up until that date, where there will be suitable evidence for charging.
“Whilst we have excellent evidence of bid rigging, we only have circumstantial case that the scheme of payments in August and September 2015 were to be on the basis that contractors will pay kickbacks or other benefits, the evidence is purely circumstantial...this also means that offences such as ‘misconduct in public office’ would be difficult to prosecute at this point.”

Investigation widens

Apart from two former government ministers being implicated, persons under suspicion include at least four advertising companies, a former personal assistant to then-prime minister Kamla Persad-Bissessar, and a former media worker.

The former personal assistant is said to have fled the country shortly after results of the 2015 general election were announced.

Investigators believe that money paid through advertising agencies to the former regime were inducements to secure construction contracts.

However, investigators have hit a snag with this focus in the investigations since there is nothing illegal about political contributions, if the source of funds is legitimate.

The onus is on investigators to prove such funds going towards campaign financing were obtained through fraud, deception or some other illegality.

Additionally, some of the same contractors donated financially towards the current government, the Express was told by sources.

The Express understands that much more intensive investigations need to take place since both cases are based on complex fraud and, as such, a lengthy criminal investigative period, which can take years, is expected.

In this scenario, a decision was made by then-minister in the Office of the Attorney General Stuart Young in 2017 to proceed with civil cases.

The criminal investigations are along the lines of conspiracy to defraud, misbehaviour in public office, money laundering - awarding of contracts in exchange for campaign financing.

AG: EMM contract renewed

Speaking with the Express last Friday, Attorney General Faris Al-Rawi said the EMM’s contract has already been renewed.

“It was renewed already as far as I am aware. The Cabinet gave their approval. It is a continuing contract. The TTPS is paying them. I suggest you contact the Commissioner for further details,” he said.

The following questions were sent to Police Commissioner Gary Griffith last Friday:

1) Has the contract of EMM been extended? If yes, by how many months?
2) What is the contractual financial agreement for services rendered by EMM thus far and has this been paid?
3) Where are the funds coming from to pay EMM?

Griffith responded that “the contract will be renewed once financing which has been requested is approved. The value of the contract cannot be authorised by the Commissioner and as such a request has been made for same”.

“The scope of the contract is not for public consumption as it is sensitive in nature but it entails the investigation of contractors and public officials involved in corruption, fraud and conspiracy to defraud in regards to EMBD and LifeSport. All funding for the TTPS comes from the Government.”

Additionally, Griffith said: “The CoP has constitutional authority to manage the TTPS. Whilst the CoP can confirm that EMM as a specialist firm from the UK in serious and complex fraud matters has been retained by the TTPS and continues to be retained in several briefs that are ongoing, to investigate and prosecute certain matters recently disclosed in the public domain and several others, the TTPS is not in a position at this time to disclose sensitive personal information or any other information that will prejudice the several matters that are under investigation as some of these are at a sensitive stage and near completion.”

The Express indicated to Griffith that, based on its previous interview with Al-Rawi, the EMM’s contract was in fact renewed.

Griffith, however, said he was not aware, adding that EMM “could have been contracted for matters external to TTPS. But as for any contract that is directed to TTPS, I would need to send a request and get requisite approval for clearance, signing of contract and, of course, funds”.

Source: https://trinidadexpress.com/news/local/ ... 5b68a.html

[The_Honourable]

Guardian "responds" to Express

UK company confirms TTPS’ EMBD case strong

Mark Bassant

Lead Editor, Investigative Desk - Trinidad Guardian

“There are reasonable grounds to suspect criminal behaviour.”

That was the comment from Kate McMahon, of the UK firm Edmonds and Marshall Mc Mahon (EMM), as she wrote an email to investigators of the Trinidad and Tobago Police Service (TTPS) and its legal department last Friday to raise her latest concerns about the investigation into the Estate Management and Development Co Ltd (EMBD).

In follow-up correspondence on Monday (July 27), she denied recent newspaper reports that the evidence was weak and said the police were “quite comfortable with the warrants” they need to carry on with their investigations.

Mc Mahon informed the TTPS last Friday that her firm, which has been assisting the TTPS with the major probes, had intensified their communication with the Office of the Director of Public Prosecutions in “relation to the cases we are seeking to charge.” She indicated that there were three cases now being actively investigated (EMBD, Lifesport and EFCL) and “two which are currently being assessed for charge by the DPP and the third which is at an advanced stage and has warrants to be executed which will, we believe, reveal money laundering and funding for the 2015 election via government contract fees.”

Mc Mahon also pointed out a third matter has also been considered.

“We wish to execute a search soon on (name called), who is central to our investigation with the Anti-Corruption Investigations Bureau (ACIB). This is an important matter of public policy and we urge that, on the evidence as it stands, there are reasonable grounds to suspect criminal behaviour and warrant a search,” Mc Mahon said.

Mc Mahon noted that with a search warrant under section 5 (1) of the Indictable Offences(Preliminary Enquiry Act 1917), “there is a general authority granted to a police officer to search specified premises in accordance with a validly issued search warrant under this section.” She said once the magistrate is satisfied that the place in question to search may have evidence “as to the commission of any such offence,” the DPP’s permission is not needed.



She said she was optimistic that “the DPP may see fit to advance the cases we have put before him.”
On Monday (July 27), Mc Mahon also wrote to TTPS investigators about the matter surrounding Ed Jenkins QC raised in another newspaper report. She indicated in her correspondence that “Ed Jenkins has advised that he does not wish these searches done as they will appear politically motivated. We have three problems here.”

However, Mc Mahon advised the officers that “since there has been significant media attention on this case, I think evidence should be collected now.”

The UK firm partner advised that “unless the warrant was particularly tricky or difficult, that the officers should be encouraged to (a) not go to the DPP for assistance with routine policing and (b) if they do have concerns or need help, they use the TTPS legal department.”

Mc Mahon ended her correspondence by stating they were working as quickly as possible with Jenkins to get his approval “but I think that it’s a significant problem for the TTPS to ask the DPP for approval of warrants. That is a policing function and it should be sped up.”

In her Friday correspondence, she also cleared the air on the firm’s contract with the TTPS.

“It was my mistaken belief that our contract was only until the end of July... it has been approved in principal (sic) for at least an additional year and is in the latter stages of contractual approval. This potential contract endpoint was communicated to the DPP’s office in the last few weeks. Unfortunately, (incorrect) circumstances of this contract appear to have been discussed with the media.”

On Monday, Commissioner of Police Gary Griffith and T&T Police Service legal adviser Christian Chandler also defended the evidence they had so far compiled in the Lifesport and EMBD probes amid reports they had not uncovered enough to press charges concerning those cases. Chandler noted that the report which the Trinidad Express based its stories on was old and they had advanced the case substantially since then.

On July 19, a Sunday Guardian report revealed that arrests were imminent in the $549 million criminal EMBD case, with a prominent politician allegedly closely linked to the matter.

Source: https://www.guardian.co.tt/news/uk-comp ... 888d0bf2f0