The National Assembly on Thursday approved an $800 million supplemental appropriation for the Ministry of Finance which is expected to be used to pay a court judgment of more than $400 million awarded to Trinidad construction company Dipcon in 2015.
Finance Minister Winston Jordan explained that of the $800 million, approximately $49 million is to be used for Ministerial outreaches while the majority is set aside to meet payment of the judgment which has incurred an interest nearly as large as the principal sum.
“The judgment attracted an interest of 6% from 2009 to 2015 and 4% thereafter until such time as it is paid,” the Minister explained repeating that of the $800 million roughly $750 million is for payment of this award.
In requesting the sum, Jordan told the House that he was not happy about having to request the money for this purpose but once it is approved government will “hold it without prejudice because the matter is still in the court and is expected to be heard again on June 24”
“It is the first time of defending estimates in this House that I don’t have a good feeling and I don’t have a good feeling because this money is slated for Dipcon through an award that was made by the courts. The matter I understand is still in court it is being appealed [but] after a glaring headline appeared in one of the dailies with my picture and the word contempt across it we decided to come to this House to vote the monies; monies that we don’t have; monies that are needed at the time when we have to find an additional 3.3 billion dollars for the elections commission. We come to the House for monies for debts and awards which originated prior to this regime coming into power [and] we will be holding this money until a judgment,” he told the House.
The minister stressed that the matter which originally went to court in 2009 was adjudicated by April 2015 but “the last government apparently ignored the award of the court and this matter has been backwards and forwards [while] attracting interest hence the sum you see today”.
According to Court filings, on February 9, 2009 proceedings commenced for the payment of US$2,228,400.67 (or its equivalent in Guyana dollars at the Republic Bank Selling rate of exchange) at the date of payment being the balance in the sum of US$665,032.17 due owing and payable by the Government to Dipcon for road building and construction works undertaken by the company under an Agreement dated 5th March, 2003 with the Government, together with the sum of US$1,563,368.50 due owing and payable by the Government to the plaintiff for increased costs incurred at the request of the Government in the course of undertaking the said road building and construction works.
Jordan said that this is one of “numerous judgments” incurred by the last administration that the current administration is being forced to pay.
“I want this House to know because critical resources, critical resources that should have gone to pay wage increases, pay school teachers, build roads, we have to keep diverting monies to pay judgments, the bulk of which originated prior to 2015, and I think the House and public must know this,” he stressed as he referenced the RUDISA judgment for the environmental tax that was awarded by the CCJ.
“The mother of all awards is still facing us, an award that would tally around $6B for which the awardee has been after us for the last four-plus years,” the Minister warned the House.
Dipcon moved to the courts earlier this month for Jordan to be jailed for failing to pay it the US$2,228,400.67 it was awarded since 2015.
Justice Rishi Persaud handed down the judgement in the company’s favour on 21st October, 2015 but Jordan it is claimed has failed to take steps to effect payment. As a result, lawyers for Dipcom applied to the court for an administrative order to compel the minister to pay.
According to grounds listed in Dipcon’s application to the court, by letter dated 28th December, 2015, the Registrar of the Supreme Court transmitted the order made by Justice Persaud to the minister who “thereupon became obligated …to direct, by warrant under his hand, that the amount awarded thereby to be paid.”
It was stated that the minister has in breach of his statutory obligation, “deliberately and contumaciously refused and failed to comply with his obligation” under the State Liability and Proceedings Act and has subverted the said order of court, pay the said judgment or any part thereof to the applicant.
