STATEMENT BY DEPUTY PRIME MINISTER AND MINISTER FOR INFRASTRUCTURE, PORT SERVICES AND TRANSPORT AT A PRESS CONFERENCE HELD IN RESPONSE TO STATEMENT AND ALLEGATIONS BY MR. GUY JOSEPH The Former Minister for Communications, Works, Transport and Public Utilities in his press conference held yesterday, March 5th, 2014 disputed the following facts; 1. That his bothers and close family affiliates received substantial work from the Government of Saint Lucia between 2007 and 2011; 2. He purported that the WASCO estimate of $65,561.72 for the clearing of the Vanard and Ravine Poisson Project, which was paid to Mr. Rytis Joseph at a cost of $242,009.65 related to cost estimates dating back to 1993; and 3. He argued that an Advance Payment Certificate was issued to Asphalt and Mining Saint Lucia Limited in February, 2012 and that he had no knowledge of this arrangement. To my mind, Mr. Joseph is pathologically mendacious, and continues in his usual manner, to twist the facts to the people of Saint Lucia. 1. It is indeed a fact that between 2007 and 2011, the brothers and immediate relations of Mr. Guy Joseph received works totaling $2,996,801.18. Of particular interest is that the bulk of this work relates to soft works such as clearing of drains, and desilting of rivers which cannot be verified today and were given by direct award recommended by the Ministry of Communications, Works, Transport and Public Utilities. Mr. Joseph also claimed that the award of contract valued at $63,300.00 to Mr. Glenroy Ramjeawan for Site Clearing Works at the Proposed New Terminal at George F.L Charles Airport started under the Ministry of Planning in 2007. As can be seen by the Direct Award dated January 16, 2008, the Direct Award was issued to the Ministry of Communications, Works, Transport and Public Utilities. 2. The WASCO letter Mr. Joseph made reference to was a totally different letter to the one discussed in parliament. I also note that Mr. Joseph had some difficulty reading aloud the actual letter on a talk show on DBS television, to the extent that he requested assistance from the host. The letter in question, dated April 2nd, 2010 from the Managing Director of WASCO states that “it is customary and indeed industry practice to hire such equipment on an hourly and daily rate. We (meaning WASCO) are familiar with rates as high as $300 per hour for this type of work and given the scope of work, the resultant invoice suggests an unconscionable hourly rate.” So while the project was executed at an hourly rate. That is indeed where the controversy lies, as there would not be the limitation of a fixed contract sum which would in turn be subject to verification by quantity surveyors. WASCO’s cost of $65,561.72 was dated April 2nd, 2010 and was based prevailing rates at the time (SEE WASCO LETTER) and NOT based on 1993 costs as Mr. Joseph suggests. Mr. Joseph’s claim is tantamount to questioning the professional competence and integrity of the independent officials at WASCO. In the end Mr. Rytis Joseph was paid the sum of $242,009.65 for the project, as stated in the letter from WASCO, a variance of $176,447.93. 3. In relation to the payment certificates for the Bocage-Sunbilt and Entrepot to Independence City Road Rehabilitation Project, executed by Asphalt and Mining. All issued payment certificates were based on the contractual terms to which the Government of Saint Lucia was bound. This contract was signed on October 13, 2011. Within the Contract Data of the aforementioned contract and under Sub Clause 14.2, the Government was bound to an Advance Payment of 20% of the Accepted Contract Price with repayment of this advance commencing after 30% of the Contract price had been certified. It is also interesting to note that on the official contract document, Asphalt and Mining’s witness is Ms. Berthaline Ramjeawan of Forestierre Castries. It should also be noted that by memo dated June 27th, 2011, technical officers of the Ministry wrote expressing their concern over the cost of the Asphalt and Mining Road Rehabilitation Project when compared with the Ministry’s prevailing rates. The letter states that “…it was determined that the overall cost of the project can be negotiated downward to no more than EC $8,631,239.57. Details for this costing are provided in the attached rate comparison document. AMSL’s estimate was EC $10,454,483.30” The final contract amount for the Bocage-Sunbilt and Entrepot to Independence City Road Rehabilitation Project was $9,486,138.98, a difference of $854,899.41 when compared to the recommendation of the Ministry’s technical staff. END.
Posted on: Thu, 06 Mar 2014 16:53:47 +0000