Saturday, August 8 2009

Were the 13 drainage projects announced at Thursday’s post- Cabinet media conference meant to draw public attention away from the $2.1 billion contract given to an Anglo-Italian helicopter company, Augusta Westland, principally for the supply of four helicopters for the TT Air Guard, and the award of a $233 million contract to a Chinese firm, Beijing Liujian Construction, to redesign and restore Maracas Beach?

Were these contracts granted on the basis of tenders and, if so, which were the other companies involved and when was the selection process conducted? In turn, why was it necessary for Augusta Westland to be the first to announce the contract for the provision of the four AW139 medium twin turbine helicopters, the news of which had not been made official at Thursday’s Government news conference or at all. Indeed, Minister of National Security, Martin Joseph, who was not at Thursday’s post-Cabinet news conference, neither confirmed nor denied the signing of the $2.1 billion contract, when approached, instead offering, somewhat abruptly, “I am in a meeting and I cannot talk to you right now.”

All Minister Joseph needed have done was give a firm comment and add that because he was in a meeting he would contact the Newsday representative later with more details. We are not dealing here with the purchase of a few bicycles, but rather the planned acquisition of four relatively large helicopters which will be costing taxpayers more than $2 billion of their hard-earned money.

Does the $320 million upgrade for the Piarco and Crown Point Airports announced at the media conference by Minister of Works, Colm Imbert, have a direct bearing on the contract, reportedly, entered into by Government with Augusta Westland for the company to provide the four helicopters?

Admittedly, the Piarco and Crown Point upgrade projects include the construction of a hotel and the development of an international business park at the Piarco Airport Estate and the complete rehabilitation of the runway at Crown Point. Nonetheless, we believe the question to be pertinent. Additionally, why the $233 million plan to redesign and restore Maracas Beach? When was this conceptualised and will there be a corresponding upgrade of the road to Maracas Bay? Both projects jointly represent a massive commitment of taxpayers’ funds at a time, not merely of a global economic downturn, but official reports that this country has had two successive quarters of a decline in growth. In turn, coupled with Prime Minister Patrick Manning’s recent call to residents to loosen their belts, does the $233 million commitment not send uncomfortable signals? Government’s rationale may be that it not only has the available financial resources, but that there has been an upward adjustment in the international price for crude oil and natural gas. We wish to remind, however, that uncertainty still exists with respect to demand.

It may be argued that the famed British economist, John Maynard Keynes, had put forward that during a recession Government should stimulate the economy, and ipso facto spending, through putting public works programmes into effect. Nevertheless, it appears that with the $2.1 billion contract for the purchase of the four helicopters from an Anglo-Italian helicopter company, and the awarding of a $233 million contract to a Chinese firm to redesign and restore Maracas Beach, what Government will, in fact be doing, is stimulating the economies of the United Kingdom, Italy and China! It should be noted for the record that whenever a contract has been granted to a Chinese company that, invariably, the labour and managerial staff come from China and a not insubstantial portion of their wages and salaries repatriated.

We ask the questions: Are the planned acquisition of the helicopters and the redesigning and restoring of Maracas beach absolutely necessary at this time of economic downturn and given the clearly high cost?