Government has obtained documents which show that the US$5M thought to be outstanding from the sale of GT&T shares was collected prior to President David Granger taking office and efforts are underway to detect the money trail, Minister of Natural Resources Raphael Trotman says.
“What I can say is that Mr Harmon has been able to retrieve some documents which tell a different story. That story being of course that the (US) $5M was paid so we are trying to track down to whom, how and where,” he told reporters at a post-cabinet press briefing at the Ministry of Presidency yesterday. He said the payment was made before May 16, 2015.
Trotman made the disclosure after being asked about Minister of State Joseph Harmon’s recent controversial trip to China. He said officially, the minister travelled to represent government in a National Industrial and Commercial Investments Limited (NICIL) matter. NICIL is government’s holding company.
The Ministry of the Presidency, in a statement on April 1, had said that Harmon’s trip to China was for the purpose of engaging in discussions with regard to the payment of the US$5 million balance owed to the government for the purchase of 20% of phone company, GT&T shares by Chinese company, Datang Telecom Technology and Industry Group from NICIL in 2012. This deal was entered into by the previous PPP/C administration but only US$25 million of the agreed US$30 million was paid. The statement had said that in-house legal counsel at NICIL Natalia Seepersaud accompanied Harmon.
Trotman told reporters that Harmon has provided a full report on his trip, adding that as far as he knows, the NICIL board is considering the findings and that will be made public shortly.
In recent weeks, Harmon has been heavily criticised, particularly after a photograph of him and executives of controversial logging company Baishanlin in a private plane, surfaced.
Asked if Cabinet has been given a full report on the outcome of Harmon’s trip to China, Trotman said Cabinet has received an oral report from Harmon and this was followed by him presenting copies of documents which later became statements which were released to the press. “And so I am unable to add anything to what has already been released insofar as names or personalities. I am not aware that those were brought up or discussed at Cabinet,” he said. Trotman was asked for the names of the other three Chinese companies that Harmon met on the trip.
Harmon in a statement to the media had named one company – Long Jiang Forest Industries Group. He had explained that the company has acquired 55 percent of the shares of Baishanlin and intends to fully take over the company this year.
Questions have been asked as to why Harmon as the Minister of State would meet with investors as this would fall outside his portfolio.
Asked yesterday why he, the Minister of Finance, the Minister of Business or the head of Go-Invest did not accompany Harmon on the China trip given that there were meetings with investors, Trotman said that as has happened before in many cases, Harmon’s meeting with the investors was unscheduled. He said this happens often when a minister travels on official business.
Trotman emphasised that Harmon did not go there to meet with investors but rather, the opportunity presented itself while he was there.
“…that is not uncommon that other matters came up on the trip,” he said citing one of his recent trips as an example of how opportunities to meet investors outside of official business can occur.
“So it is not uncommon…The case was that Cabinet did approve Mr Harmon’s travel for the pursuit of the US$5M that is still outstanding for the sale of GT&T shares…It is not uncommon as I said and neither is it illegal for an official, minister or otherwise, to entertain other requested meetings or to have other engagements while on an official trip for one matter,” Trotman said.
Further, the minister stressed, officials around the world would use private jets provided by potential investors. “There are levels of comfort and there are levels of discomfort and I think that the picture by itself of course was a very uncomfortable one to look at,” he said.
In this light, he questioned whether it would be appropriate for government officials to use an Exxon-owned helicopter to visit the company’s rig or using the company’s transportation facilities if invited to Texas for high level meetings. “As I said, much depends on the circumstances and I accept Minister Harmon’s explanation that given the time available and given the distance he was required to travel, that private jet was in those circumstances, was the best way.” Trotman asserted.
However, he said that Harmon must be regretting some of the decisions he would have made on that trip. “When presented with the offer knowing the vastness of China …it seemed a convenient mode of transportation but I am certain that he regrets that that has led to this,” he said in reference to the uproar.
Pressed for a response to the minister’s presence on a private jet organised by potential investors for negotiation purpose and a possible conflict with the proposed code of conduct for government officials, Trotman said “It could lead to a conflict but in and of itself, it is not a conflict. It could lead to a conflict if the travel was used to influence but we have no evidence to show that it has influenced a decision,” he said.
Asked whether he would recommend such a move by an official, Trotman did not provide a clear answer. “As I said, I am sure that Minister Harmon and all ministers having looked at not just the photograph but the result would opt not to avail themselves of the service if it is offered in the future,” he said.
“But at the point in time it seemed quiet convenient given the vastness of China…the fact that many miles had to be covered in a very short space of time but I am convinced and satisfied that no wrong was intended,” he added.
