RENTAL DEAL!
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ISSUE 147 Friday 11th MARCH, 2016<br />
Page 3<br />
QUESTIONABLE WASA LEASE!<br />
- for 10 years<br />
Story by Investigative Reporter AZAD ALI<br />
Questions are being<br />
raised about<br />
a decision by the<br />
Tenders Committee of<br />
the Water and Sewerage<br />
Authority (WASA)<br />
regarding the rental of a<br />
property owned by Bhagwansingh’s<br />
Hardware and<br />
Steel Industries Limited<br />
for $35.4 million for 10<br />
years.<br />
This is one of the “irregularities”<br />
it is hoped will be<br />
part of the forensic audit<br />
into WASA, insiders in the<br />
company are saying.<br />
The investigation will be<br />
conducted as to how WASA<br />
spent $38 million to renovate<br />
the Bhagwansinghowned<br />
property at Golden<br />
Grove Road, Arouca 18<br />
months before the Tenders<br />
Committee approved<br />
the long-term rental of the<br />
property for use as the Trincity<br />
Regional Complex.<br />
According to documents<br />
in the possession of Sunshine,<br />
on May 25, 2015,<br />
then Acting Chief Executive<br />
Officer (CEO) Yorke<br />
wrote a memorandum to<br />
Diaz who was the Acting<br />
Director of Corporate Services<br />
at the time, stating<br />
that at the 252nd meeting<br />
of the Tenders Committee,<br />
a decision was taken to<br />
advise the board of directors<br />
to renew the lease for<br />
WASA’s Trincity Regional<br />
Complex in Arouca.<br />
The funds for servicing<br />
the lease would come<br />
from the Corporate Services<br />
Recurrent Budget.<br />
The proposed terms for<br />
the rental are: for a period<br />
of 10 years commencing<br />
September 15, 2014<br />
and ending in 2024 at a<br />
fixed rate with the option<br />
to renew the lease at the<br />
end of the 10 year period,<br />
and at a monthly rate of<br />
$295,000 which amounts<br />
to $35.4 million over the<br />
life of the lease.<br />
Sunshine has been informed<br />
that the rental<br />
agreement has still not yet<br />
been signed to date and<br />
moves are being made to<br />
have it rushed through and<br />
to bind the State for the<br />
next decade before the new<br />
board has a chance to figure<br />
out what is going on.<br />
What is curious though<br />
is that work on the Trincity<br />
Regional Centre began<br />
when Ganga Singh was<br />
Acting CEO of WASA following<br />
the 2010 General<br />
Election.<br />
In 2012, Singh was made<br />
Minister of the Environment<br />
and Water Resources<br />
and line minister for<br />
WASA.<br />
This placed him in a position<br />
where he would have<br />
had as minister to oversee<br />
and approve matters commenced<br />
by him as CEO.<br />
The Trincity Regional<br />
Centre was opened in December<br />
2013 by Singh in<br />
his capacity as Minister and<br />
was described as a “stateof-the-art”<br />
facility.<br />
Singh confirmed at the<br />
opening ceremony that $38<br />
million had been spent by<br />
WASA on the renovation<br />
works.<br />
“How can you spend $38<br />
million on a property that<br />
you have no long-term<br />
lease for? How can you<br />
spend that kind of money<br />
before you have the approval<br />
to rent the property<br />
for such a long period?”<br />
One senior WASA<br />
source asked.<br />
“After you spend $38<br />
million to renovate a<br />
building you are now asking<br />
for permission to lease<br />
the very said building.<br />
How can the board say<br />
no? You cannot pick up the<br />
building and walk with it,<br />
so the board’s hands are<br />
tied. The timeline here is<br />
also very questionable.”<br />
It is also important to note<br />
that having spent $38m to<br />
GANGA SINGH<br />
ANNA DEONARINE<br />
renovate the property and<br />
another $35.4m in rent by<br />
2024, the same WASA offices<br />
even in the best of<br />
times do not collect more<br />
than $75,000.00 per month<br />
from customers. What kind<br />
of business enterprise is<br />
WASA? Many persons are<br />
asking.<br />
Sunshine also made inquiries<br />
about the property<br />
and learned it was previously<br />
owned by CLICO. The<br />
building was much smaller<br />
and housed a branch of the<br />
insurance company, which<br />
was owned and managed by<br />
Shama Deonarine mother<br />
of former ILP Deputy Political<br />
leader, Anna Deonarine.<br />
The building also had<br />
an office for Home Construction<br />
Limited (HCL),<br />
the land and property development<br />
subsidiary of<br />
CLICO.<br />
When the fall of CLICO<br />
began in 2009, HCL was in<br />
debt to Bhagwansingh.<br />
The company supplied<br />
HCL with a substantial<br />
amount of steel and other<br />
building materials for its<br />
housing developments such<br />
as at the Crossings in Arima<br />
and major projects such<br />
as One Woodbrook Place,<br />
St. James. When the Insurance<br />
giant collapsed, HCL<br />
owed Bhagwansingh over<br />
$10 million for materials.<br />
The land on Golden Grove<br />
Road was traded to Bhagwansingh’s<br />
as part of the<br />
settlement of the outstanding<br />
bill,” according to a former<br />
HCL source.<br />
The word making the<br />
rounds is that a lawyer who<br />
is the wife of a government<br />
minister from the previous<br />
administration made a tremendous<br />
amount of money<br />
out of WASA’s rental of the<br />
property and has a major<br />
financial interest in the 10-<br />
year deal going forward.<br />
All eyes remain fixed on<br />
the upper-level management<br />
of WASA over this and<br />
other questionable deals at<br />
the Authority. Many persons<br />
are concerned that a<br />
forensic audit ordered last<br />
year is taking place while<br />
the persons whose professional<br />
conduct and decisions<br />
are being probed remain<br />
on the job albeit that<br />
they are not holding the<br />
same positions as under the<br />
last administration.<br />
A WASA media release<br />
last December – 13 days<br />
before the fire at the headquarters<br />
– advised that<br />
former CEO Yorke, a close<br />
friend of former Minister<br />
Singh and a fete promoter,<br />
was demoted to act as Director<br />
of Corporate Services,<br />
while four other senior<br />
level staff who held acting<br />
positions reverted to their<br />
previous substantive posts.<br />
General Counsel and<br />
Corporate Secretary Dion<br />
Abdool was appointed to<br />
act as interim CEO. Paula<br />
Maria Fortuné, head of Legal<br />
Services, was shifted to<br />
act as General Counsel and<br />
Corporate Secretary; Raffie<br />
David, head of the Tobago<br />
Region, now acts as Director<br />
of Operations; Rachelle<br />
Wilkie, head of Financial<br />
Planning and Management<br />
was put to act as Director<br />
of Finance; and May Ann<br />
Diaz, head of Workforce<br />
Planning and Organisation<br />
Development, was re-assigned<br />
to act as Director of<br />
Human Resources.<br />
Diaz (M) is the sister of<br />
former Director of Corporate<br />
Services Wendell<br />
Diaz. Diaz (W), was reassigned<br />
in the management<br />
shuffle to Assistant to the<br />
Director of Corporate Services,<br />
former CEO Yorke.<br />
He was allegedly caught on<br />
the fourth floor of the damaged<br />
WASA headquarters<br />
building a few days after<br />
the fire without authorization.<br />
He was immediately<br />
suspended.<br />
All the managers served<br />
during the tenure of Indar<br />
Maharaj as Chairman<br />
of WASA. Maharaj was<br />
appointed Chairman in<br />
December 2010 until the<br />
September 7, 2015, General<br />
Election. Maharaj simultaneously<br />
held the post<br />
of President of the National<br />
Gas Company (NGC) during<br />
which time billions of<br />
dollars in questionable ventures<br />
were undertaken by<br />
both NGC and WASA such<br />
as the $1.6 billion Beetham<br />
Wastewater Treatment<br />
Plant project which was<br />
awarded to SIS and which is<br />
now before the courts since<br />
SIS is unable to deliver.<br />
A $70 million contract by<br />
NGC to SIS for the beautification<br />
of the lands surrounding<br />
the Preysal Interchange<br />
in Couva is also<br />
under investigation.<br />
There is another WASA<br />
rental property that is giving<br />
the Sunshine serious<br />
cause for concern and<br />
that is the WASA stores at<br />
Johnny King ext. in Aranguez,<br />
but more about this<br />
in a subsequent issue of the<br />
Sunshine.