By ANDRE BAGOO Tuesday, September 29 2009

THE NATIONAL Union of Government and Federated Workers (NUGFW) Construction Company Limited, of which Independent Senator Michael Annisette is director and virtual shareholder, is at the centre of a Udecott land transaction queried by Diego Martin West MP Dr Keith Rowley in the Uff Commission of Inquiry.

In written submissions filed last December, Rowley raised concerns over a million-dollar land transaction conducted by NUGFW, Udecott and Hafeez Karamath Limited. Rowley noted that when he was Housing Minister, he recommended to Cabinet that State property at Valsayn be transferred at competitive prices to the NUGFW for the purpose of the development of a housing estate.

“Almost nine hectares of NHA Valsayn land were leased to a joint venture company NUGFW Construction Company Limited at a cost of $2,530,000 in February 2004,” Rowley notes. However, instead of the land being developed, it was sold by NUGFW Construction to Udecott.

“It is disturbing to note that this State land which was facilitated at favourable rates to the private sector, apparently returned to the public sector by purchase through an arrangement between NUGFW Construction Company Ltd, Udecott and Hafeez Karamath Ltd designated as the sole development contractor,” Rowley argues.

He recalls how the transaction was not immediately disclosed to him.

“This information came to the notice of the Ministry of Housing purely by accident when an officer from Udecott let slip at a meeting at the Ministry of Housing that Udecott had bought the State land from NUGFW Construction Company Ltd (at a premium) and that Udecott was supposedly financing Hafeez Karamath Ltd, the selected developer, or joint venture partner of the NUGFW Construction Company Ltd.”

According to checks done by Newsday, Annisette was appointed director of the NUGFW Construction Company on October 19, 2002. Up until the company’s most recent annual return, filed at Companies Registry on April 20 this year, he remains a director. Additionally, in his register of interests filed with the Integrity Commission in June 3 this year, Annisette lists his directorship of the company and in documents notes that the company is a source of income. Additionally, the shareholders of the NUGFW Construction Company include the trade unions NUGFW as well as the Seamen and Waterfront Workers Trade Union, on which Annisette holds directorships. Annisette is also a Udecott board member. The Valsayn land was sold by NUGFW Construction Company in December 2004.

“Documents indicate that Udecott may have paid over seven million dollars ($7.2 million) for State land only ten months after the State facilitated a private sector partner by making land available at significantly reduced costs to the Union,” Rowley notes in his written submission. Of the transaction, he further reports that he requested a position paper on the project from Udecott on July 11, 2006. “Up to the point of time when I demitted office as Minister of Housing in November 2007, no response was forthcoming.”

Dr Rowley, who is expected to speak on debate of the bill when it moves to the Lower House this week, yesterday called for Annisette to be removed as a Udecott director or be removed as an Independent Senator.

“His presence on that board is an aberration of standing PNM policy,” Rowley said. “In the PNM we all know that if you are serving on any executive body from Local Government up, you are disqualified from serving. You aren’t allowed to even be a Local Government councillor and be on a state board.”

“No parliamentarian is allowed to serve on a board because these State enterprises report to the Parliament. In Annisette’s case the Udecott issue is before the Parliament and he will find himself defending himself. Here you have a man who is an Independent senator on a state board and when the state board is held up under scrutiny he is using Parliament to defend his corporation.”

“This is absurd and the country should never find itself in this situation where a senator finds himself in a situtation where he now has to decide whether he should stay home,” Rowley said.