(Antigua Sun) – The long outstanding IHI Debt Settlement matter now seems set to move forward, after a Miami court denied applications made by Opposition Leader Lester Bird and Asot Michael to have a judge recused from hearing the case, which they also wanted to be moved to a different division of the court.
The matter is now set to go to case management in September. Reports are, the Miami civil matter in relation to the alleged IHI fraud, was filed in early 2006 as a “Pure Bill of Discovery” to obtain documents, bank accounts, and lawful evidence against the defendants.
The government is alleging that the fraud involved misrepresentations about the re-negotiations with IHI Japan of the APUA debt and the overcharging of and overpayment by the government in an amount in excess of US$200,000 monthly, later reduced to US$70,000 monthly. The former government allegedly constructed a desalination plant, financed by a Japanese company and debt service for the financing was to have been covered by payments generated from the plant’s operation.
The government, in the 1984 deal, allegedly renegotiated the pay-off on the US$33 million loan and arranged for Bruce Rappaport to deal with the negotiations.
The action was eventually amended to a full claim against Rappaport and his various companies, Bird, Michael and his two companies Giddie Ltd. and Bellwood Services, and his mother Josette Michael.
A new judge, Peter Adrien, was assigned to hear the case in Miami. However, Bird and Michael filed a motion in March this year seeking Adrien’s recusal (that is for him to step down) from doing the matter. Adrien is an Antiguan by birth.
The court handed down its decision on 29 June denying the motion for recusal.
Bird and Michael then made an application to move the matter to a different division of the same court which effectively would mean that another judge would hear the matter. That application was also denied at a hearing held on 21 July. Attorney General Justin Simon said “the matter has now been set down for a case management hearing on 3 September at which time the government will advise whether or not it is proceeding given the fact that it is also proceeding on the Antigua civil matter, which was also placed on hold pending the settlement negotiations with Rappaport who has now been removed as a defendant.” Rappaport earlier this year paid the government a US$12 million settlement. Those monies reportedly do not cover all the funds allegedly misappropriated from the government’s treasury, and according to Simon there is additionally a claim for interest.
