Young: Was NGC successful in SIS arbitration?

Port of Spain South/St Ann's West MP Stuart Young, right, speaks at a PNM media conference as PNM senator Dr Amery Browne, and Political Leader Pennelope Beckles look on at the Office of the Opposition Leader, Charles Street, Port of Spain, on August 25. - Ayanna Kinsale

Former prime minister Stuart Young is calling on the government and the current NGC board to state whether the arbitration against Super Industrial Services (SIS) was successful in favour on the state-owned enterprise.

Speaking during a media conference at the Office of the Opposition Leader, Charles Street, Port of Spain, on August 25, Young said he understood the arbitration decision was handed down on August 1.

“My understanding is that NGC has been successful. I am asking the government and the board of the NGC whether it was found that SIS was properly terminated and whether it was found that there was overpayment to SIS of approximately US$49 million/TT$343 million.

“Further, were costs resulting and flowing from the termination also awarded to NGC in the sums of millions of dollars?”

Young said the saga began in March 2014 when the UNC government awarded a contract to SIS for US$162 million/$1.13 billion to design and build a water recycling plant at Beetham. He said these works were supposed to be completed on or before October 22, 2015.

He said the UNC paid NGC a 20 per cent mobilisation advance of US$34.4 million/ $226.8 million, double the normal amount, which was never applied or repaid.

Young said NGC terminated the contract on November 20, 2015 after SIS said it had underbid on the contract, would not be proceeding with the work and began abandoning the site. He said SIS began distancing itself from completing the works on September 14, 2015 and started demobilising from the site in October 2015.

He said by this time SIS had been paid US$121 million/$852 million, approximately 75 per cent of the contract sum.

Young said on December 23, 2015, NGC obtained an ex parte interim freezing injunction over the assets and property of SIS of up to $180 million, and there had been court proceedings up to the Privy Council where NGC succeeded in setting aside sham mortgages and a debenture the SIS granted to a company called Rainforest Resorts Ltd to try and place its assets out of the reach of NGC and any creditors.

He said in 2016, NGC started arbitration proceedings against SIS where it sought, inter alia, to recover sums of money it claimed were overpaid to SIS plus other costs incurred after termination of the contract. He said SIS counter-claimed on the arbitration, saying it was wrongfully terminated and also claimed NGC owed it money.

Young said after nine years of arbitration through which the PNM fought for the interests of the country, he is calling on government to release the results of the arbitration.