PNM suffers blow in CEPEP court challenge

Derek Achong

The People’s National Movement (PNM) has suffered a major blow to its bid to challenge the termination of over 300 Community-based Environmental Protection and Enhancement Programme Company (CEPEP) contractors. 

Delivering a 25-page ruling a short while ago, Justice Margaret Mohammed upheld an application from CEPEP’s lawyers led by Anand Ramlogan, SC, of Freedom Law Chambers, to stay the case. 

Justice Mohammed found merits in CEPEP’s claim that Laventille-based general contracting company Eastman Enterprise Limited rushed to file the lawsuit when a clause in its contract provided for mediation and arbitration before litigation. 

She also noted that CEPEP had raised serious concerns over a decision taken by its former board to extend the contracts, which were due to end next year, by three years, days before the general election on April 28. 

She ruled that its claim that the renewals were facilitated based on a fraudulent representation of Cabinet approval, allegedly given to former CEPEP chairman Joel Edwards by former Rural Development and Local Government Minister Faris Al-Rawi, was sufficient enough to be probed by Director of Public Prosecutions (DPP) Roger Gaspard, SC. 

She said: “The Claimant did not take all steps possible to comply with pre action protocol prior to filing the instant action.”

“Further, the serious matters concerning the extension of the agreement to September 2029 necessitate the granting of a stay of the claim and all proceedings and a referral of all the documents filed in this action to the DPP for his consideration,” she added. 

The issue of Cabinet approval arose after the PNM filed a breach of contract lawsuit. 

Responding to the lawsuit, CEPEP put forward an affidavit from continuing CEPEP chief executive officer (CEO) Keith Eddy, who claimed that Edwards gave assurances to him and the company’s board that Cabinet had approved the renewals. 

Edwards provided an affidavit in response on Eastman’s behalf in which he claimed he never gave such assurances and sought to correct a board note over the renewals that indicated that it was being done with the blessing of the then-Cabinet. 

Eddy then filed another affidavit challenging Edwards’ claims. 

Eddy provided a transcript of Whatsapp messages between him and Eddy to buttress his original claim. 

He further contended that before Edwards gave the alleged assurance, he (Eddy) was pressured by Al-Rawi into facilitating the renewals of the contracts. 

Several former Cabinet members including former finance minister Colm Imbert have claimed that in 2015, the then-Cabinet, delegated the authority to extend contracts to CEPEP’s board. 

“That was never rescinded. That note was never varied. Even the same UNC has not rescinded that,” Imbert said. 

CEPEP was also represented by Kent Samlal, Jared Jagroo, Natasha Bisram, and Asha Ramlal. The contractor was represented by Larry Lalla, SC, St Calir O’Neil, and Kareem Marcelle.