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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.

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