UFF COMMISSIONERS PROBE 'ACE OF HARTS' DEALBy Andre Bagoo Sunday, August 30 2009
BACK in November 2006, Udecott chairman Calder Hart sold his sailboat the Ace of Harts for $870,000 to Ali Ettehadieh, the Genivar (Trinidad and Tobago) Limited president, while Genivar was a tenderer for and recipient of Udecott contracts.
The transaction is detailed in an exchange of secret and confidential correspondence between the commissioners of the Uff Commission of Inquiry and attorneys acting on behalf of Genivar which has been obtained by Sunday Newsday.
On May 5, the commissioners issued a confidential “Salmon” (See note below) letter, outlining adverse allegations raised during the course of hearings of the inquiry to Mr Jack Shenkar, the current Genivar vice president. Genivar is project manager on several major Udecott projects.
During inquiry hearings on January 28, Hart had confirmed reports that he had sold his sailboat to Ettehadieh. But under cross-examination from attorney Alvin Fitzpatrick SC, Hart said he could not remember the date of the transaction and did not see “a connection” between it and the fact that Genivar was then and is now engaged in several Udecott projects.
But by letter dated May 25, attorney for Genivar, Gregory Pantin wrote the commissioners in response to the “Salmon” letter with more details of the transaction.
“Our client’s Mr Ali Ettehadieh purchased Mr Hart’s sailboat named Ace of Harts in 2006,” Pantin wrote. “When Mr Ettehadieh learnt that Mr Hart was planning to sell his sailboat, he expressed interest in possibly acquiring it for his personal use.
“A marine surveyor, Associated Marine Design, conducted a survey to assess the condition and value of Ace of Harts in January 2006.”
According to Pantin, “This established a fair market value for the boat of between US$134,000 (TT$842,860) and US$143,000 (TT$899,470). The median market value established by the survey of US$138,500 (TT$ $870,000) was agreed between Mr Hart and Mr Ettehadieh. The sale was concluded in November 2006 with a Bill of Sale issued on November 13 2006.”
Pantin continued, “the boat is a Beneteau 445 built in 1994. At the time of the sale, the fairness of the price of US$ 138,500 was further substantiated by price comparisons available off the Internet for the same or similar boats. A current cursory internet search of Beneteau 445 sail boats built in 1994 and currently on the market (in a depressed global economy, and in different locations around the world) indicates prices in the range of US$125,000 and as high as US $179,000. These boats have four years of extra use as compared with Ace of Harts as the time of its purchase and would have to be transported from their current locations to Trinidad at additional cost.”
Ali Ettehadieh, the Genivar (Trinidad and Tobago) Limited president, has held that post since the company was incorporated in 2004, according to companies registry documents. Genivar TT is owned by Genivar GPM Inc, of Montreal Canada. Ettehadieh is currently listed as a trustee and vice president of the Canadian Genivar.
Pantin made no comment on the issue of Genivar being a tenderer of Udecott projects. The company has received several contracts for work on projects such as the $800 million Brian Lara Stadium project and the $750 million Chancery Lane complex in San Fernando. Genivar is also at work on NIPDEC projects such as the Scarborough hospital in Tobago. NIPDEC is chaired by Calder Hart.
In his letter, however, Pantin said, “Mr Hart confirmed that the sale of the boat was declared to the Integrity Commission of Trinidad and Tobago.” On January 28, Hart said that the sale was disclosed to the Integrity Commission.
A Sunday Newsday review of Calder Hart’s publically available records of fiduciary interests filed with the Integrity Commission for the years 2003, 2004, 2005 and 2006 did not reveal any record that Hart sold his boat to Ettehadieh. However, Hart, who has said he is a sailsman, disclosed information in relation to the “sponsorship” of a race boat by CL Financial.
In response to a letter dated December 22, 2005 from the Integrity Commission, Hart informed registrar Albert Alkins and Christopher Ramsey that he had earlier disclosed information about the transaction. In a letter dated January 9, 2006 and stamped received by the commission January 10, 2006 Hart wrote:
“I acknowledge receipt of your letter of 2005 December 22nd and respond as follows:-”
In relation to an item he had listed as a source of income, he wrote: “I confirm that the information of the ‘Race Boat Sponsorship received from CL Financial Limited’ was included (in) correspondence that I submitted earlier on December 8, 2004.”
The confidential Salmon letter issued by the Uff Commission also noted that the evidence adduced in the inquiry raised questions over the role of Genivar in the payment of millions worth of advances to contractor Hafeez Karamath on the $800 million Brian Lara Stadium project at Tarouba.
The commissioners noted that the evidence adduced in the enquiry indicated “that some of Hafeez Karamath Limited’s claims for variations were made out of time contrary to (contract) provisions but were still allowed by Genivar.”
In response, Pantin outlined the responsibilities of the various parties on the project. He noted that on July 16, 2008, Udecott and Genivar as well as project manager Turner Alpha held “an inception meeting regarding the respective roles and responsibilities” of the parties.
“In relation to variations and claims the initial review of these was to be performed by Turner Alpha with follow through by our client (Genivar),” Pantin wrote before revealing that, “(Genivar) was requested by Udecott to review unresolved variation claims which had been submitted by the contractor to Turner Alpha prior to our clients involvement in the Brian Lara project as considerable discrepancy existed between the amount claimed and the amount recommended.”
“Disagreement existed between Turner Alpha and the contractor as to the quantum as well as technical merit of the variations claimed. (Genivar) proceeded to undertake an independent evaluation of the value of these outstanding claims as well as their technical merit. The resulting recommendation was submitted to Udecott.”
“Given that these variation claims were presented to our client for review by Turner Alpha, our client was neither aware of nor informed as to whether or not they had been originally presented by the contractor (Hafeez Karamath Limited) within the prescribed time period, nor was our client at any time to review the contractual compliance of the claims,” Pantin wrote. In October 2008, Udecott announced that Genivar would replace Turner Alpha. But this month, Genivar officials confirmed that the company is no longer involved in the Brian Lara project.
The fourth phase of inquiry hearings has been placed in limbo due to a row over the role of commissioner Kenneth Sirju.
