BK International was paid a sum of US$5.7 million in an out-of-court settlement for works done at the Haags Bosch Sanitary Landfill, following the former government’s termination of its contract, Minister of Communities Ronald Bulkan has said.
Bulkan made the announcement during the signing of a new contract for the management of the landfill with Puran Brothers Disposal Inc.
He explained that in January, the Ministry of Communities and the Attorney General Basil Williams met with BK International and a settlement was negotiated. He stressed that BK had made a claim for in excess of US$10 million for 18 months of work from June, 2014 to November, 2015.
Bulkan further explained that they paid BK International for 20 months instead of 18 months as claimed. The settlement was designed to have the company vacate the landfill and for new arrangements to be made, the minister explained.
Following the termination of the contract, BK owner Brian Tiwarie filed an action in the High Court challenging the decision. Due to myriad problems developed with the Haags Bosch contract over the years, the PPP/C government terminated the contract on February 27, 2015. However, on November 26 last year, the then Chief Justice (Ag) Ian Chang ruled that the termination of the contract by the former government was not correctly done.