"Boat bobol." That’s what Attorney General Faris Al-Rawi may be looking into as he tries to determine how the Super Fast Galicia’s six-month contract turned into a two-year stint and if any irregularities were involved.
This, following Prime Minister Dr Keith Rowley’s claim on a radio interview yesterday of alleged “bobol” in the Galicia issue under the People’s Partnership administration.
Works Minister Rohan Sinanan, who spoke on the Galicia issue in Parliament on Wednesday, alluded to the alleged involvement of the law firm of ND Alfonso in the matter during the PP’s tenure.
But Nyree Alfonso, an attorney from the law firm, in explaining her perceived “role” in the matter yesterday, said Port management had selected the Galicia as suitable. She claimed Government was currently eyeing the Atlantic Provider vessel to use temporarily after the Galicia’s lease ends next weekend (April 21)—but noted she’d arrested the Provider for non-payment of crew wages in August 2015 and sold it to its current owner in December 2015 (See other story)
Yesterday, Al-Rawi said the PM had instructed Sinanan to pass documents on the Galicia matter to his office.
Sinanan said the information being sent to the AG would be investigated to determine any possible irregularities in the matter.
Sinanan gave certain facts on the matter when he spoke on a Parliamentary motion by United National Congress MP Suruj Rambachan on the Galicia’s lease in Parliament on Wednesday.
Sinanan said in December 2013, a certain company was hired by the Port Authority for legal advice. He said it was ND Alfonso and Co.
A tender was issued the following January 2014 for a cargo vessel. The closing date was extended by a week, but it was later cancelled.
He added that there was a history of at least five tenders being cancelled in the matter. He said tenders again went out that February 2014 in a selective process. He listed several companies which were invited to tender and the invitation included the same law firm. Tenders closed in eight days.
There were three tenders, including Inter-Continental Shipping, he added. Sinanan said it was “astonishing”
Inter-Continental Shipping was not invited for the first tender—but they had a “broker” which was the same law firm again. He said Inter-Continental got the award in March 2014.
Sinanan claimed at a later meeting, the charterer, John Powell, said since the company had obtained a six-month lease it should get it for 12 months instead. That was given. But Sinanan said this would have disadvantaged other firms.
Sinanan said when he became minister in November 2016, he visited Tobago stakeholders and later called Inter-Continental, which said it had a legitimate agreement—but one which wasn’t signed and Inter-Continental wanted it to be signed. But he said the company later said it didn’t want a short term contract, but a five-year lease or else it would “pull the boat.”
“I considered that economic blackmail,” Sinanan told Parliament.
Speaking yesterday, Sinanan added: “I found it strange the way people were invited for tenders. The contract was advertised as six months, but this stretched into three years.
“The contract was extended for 12 months without any price reduction. In the marine industry you pay more for short term contracts. One year is long term. That situation would have put other tenderers at a disadvantage if they knew Galicia tendered for 12 months.”
Sinanan said since the vessel began operating there were five tenders which couldn’t be completed and there’s concern whether “efforts were made” to somehow ensure the tenders weren’t coming to conclusion.
United National Congress MP Suruj Rambachan, in Wednesday’s debate, said the Super Fast Galicia, which costs TT$120,000 a day, arrived on a 12-month lease which was extended for 12 months and was supposed to have been extended to October 2017.
He said the PNM Cabinet rejected a Port Authority recommendation on this. Saying there was perception of “corruption” in the issue, Rambachan called on Government to say if it was eyeing a Chinese vessel called Gohan- jinsu. He claimed it could carry 1,300 passengers and cargo, costing US $22,000 daily.
Former transport minister Stephen Cadiz, under whose tenure the Galicia was leased, yesterday claimed PNM Minister Fitzgerald Hinds, in his Works Ministry stint, had sent Cabinet a note to renew the Galicia’s lease but Cabinet rejected it.
“Who rejected it and why?” Cadiz asked.
“Port management in our term did its investigations of Galicia and the ministry issued the contract on Port recommendation. Galicia was one of the few vessels whose carrying capacity fit the bill immediately.
“Dredging would be necessary for any vessel at this point since Tobago needs a large cargo vessel, so the $50 million Sinanan is speaking about for dredging isn’t Galicia-specific. But the problem is really why the PNM Cabinet let a vessel’s lease expire without putting a replacement in place - Tobago’s suffering for it.”—Gail Alexander
Sinanan said the vessel’s cost initially was $50 million a year and T&T would have ended up paying $150 million for three years. Currently, the Port pays US$18,000 to 20,000 per day for the Galicia, he said.
“This (Galicia) was a quick fix solution which went bad,” Sinanan added.
The vessel also presents infrastructural problems, he noted.
“On Wednesday you couldn’t get into the Hyatt or Parliament since there were trailers and trucks lined up nearby waiting to board (Galicia) where it’s docked behind Hyatt. Hyatt is claiming damages to premises,” Sinanan said.
“Containers have to be pulled from the other wide of the wharf to where it’s docked and trucks have to be paid for the shifting. Barge costs are involved concerning loading. “
He said Galicia’s size required a dredged port which would cost $50 million plus $20 million annually. He said the PP administration never provided infrastructure for the vessel.
“Perhaps we need a bigger boat with a smaller draught. Even if I have to take flack for it, I’m prepared to fix it,” Sinanan said.
