Afra Raymond was interviewed by Fazeer Mohammed on TV6’s Morning Edition on Thursday 19th September 2019, on affordable housing in light of the upcoming T&T budget. His insights, particularly into the Housing & Construction sector, were examined. Video courtesy TV6
Programme Length: 00:28:50
Programme Date: 19 Sep 2019
- User groups and other interest groups should be properly consulted on decisions regarding public building projects, to ensure that relevant views can be expressed at the appropriate time and taken into account before decisions are made…
(The emphasis is mine)
Is there a link between the Uff Report and Tobago Sandals? Is Tobago Sandals such a unique opportunity that we ought to adopt unique standards to assess its costs and benefits? What are the various benefits being proclaimed by the supporters of that project? This article will examine some of those claims against the factual background.
I returned to the large-scale and controversial proposals for Tobago Sandals by using that important Uff Report recommendation as my opener. The Uff Enquiry into the Construction Industry arose due to strong protests and complaints from the JCC, T&T Transparency Institute, myself and other individuals. One of the most decisive voices calling for those operations to be probed was Dr Keith Rowley, who was at that stage at loggerheads with his colleagues in government. I think Dr Rowley gained considerable kudos for taking a stand against the improper practices of his colleagues in that area. Continue reading “Property Matters – Tobago Sandals”
I previously estimated State debt to the construction industry in the $3.2-3.5 Billion range. I have since been reliably informed that construction industry claims against WASA are estimated to be in the $600M range, which of course would be subject to verification as discussed previously. My revised estimate (see table below) is now in excess of $3.8 Billion, compared to the JCC’s 27 July 2016 estimate of $2.3 Billion.
The size of my more recent estimate gives a severe picture of the State’s indebtedness to the construction industry, which is the sector that Central Bank research shows to be the largest employer in the national economy. Apart from that, the construction industry also has deep links to other important parts of the national economy such as quarrying; banking/finance/insurance; hardware stores; a range of manufacturers; transportation and so on. Continue reading “Property Matters – Pay Day? Part Two”
JCC Immediate Past-President, Afra Raymond, interviewed by CTV’s Dike Rostant on Good Morning Trinidad & Tobago on Thursday 11th August 2016 on the State debt to the Construction industry. Video courtesy CNMG
The 2016 budget statement was made on Monday 5 October 2015 by newly-appointed Minister of Finance & the Economy, Colm Imbert MP. Imbert is a professional engineer, so the fact that he lacked any formal certification in the financial field sparked much debate. The budget proposals have been made, so we are well past that point now.
These expenditure and revenue figures are from the Budget Statements, so no account has been taken of either actual outcomes or supplemental appropriations – this is the process used by the Government to obtain authorisation from the Parliament to exceed the approved spending limits in the national budget.
This letter was published in Sunday Express on 27th September 2015.
From: Afra Raymond <afraraymond@gmail.com>
Date: Thu, Sep 24, 2015 at 10:00 AM
Subject: Dismantling the Code of Silence
To:
The Editor,
Noel Garcia served as General Manager of the Housing Development Corporation during the period in which critical decisions were made on the Las Alturas housing project. That project, in which two apartment buildings failed, is now the subject of a Commission of Enquiry. There have been several reports in the press (see below) that Mr Garcia was unwilling to testify to that Enquiry. We have been unable to locate any published responses from Mr Garcia to those reports.
Noel Garcia has now been appointed as Chairman of the UDECOTT Board. The JCC’s position is that the penalties for the failure or refusal to appear as a witness to a Commission of Enquiry must be increased sharply so as to discourage this deplorable behaviour. The present fine for non-attendance is only $2,000, which is why so many persons can show open disdain for a request to testify at a Commission of Enquiry.
The prospect of the Chairman of a State Enterprise declining to testify at a Commission of Enquiry is unacceptable and of course any continuing ambiguity can only feed suspicion.
The Las Alturas Enquiry resumes its evidence hearings on Monday 28th September 2015 and it would be a refreshing change from the ‘bad old days‘ if Mr Garcia, or his attorneys, were to promptly confirm his willingness to appear as a witness.
Afra Raymond
President
JCC
Noel Garcia responded via a media release, which was copied on social media on Sunday 27 September 2015 as follows:
Getting the Facts Right
I refer to a letter to the editor from Afra Raymond entitled “Dismantling the code of Silence” published in the September 27, 2015 edition of the Express Newspaper.
In his letter, Mr. Raymond, in reference to me and the Commission of Enquiry into the Las Alturas Project, speaks disparagingly of “the prospect of the Chairman of a State Enterprise declining to testify at a Commission of Enquiry”.I wish to categorically state that I have never refused to give evidence before the Commission of Enquiry into the Las Alturas Project. Despite what Mr. Raymond claims to have read (and what he erroneously plainly believes), the Commission has never at any time contacted or subpoenaed me on the matter of the Las Alturas Project. This, although my postal address, email address and telephone number have remained unchanged for years.
For the record, I have never shirked my duty or my responsibility to give evidence before any court or any tribunal with respect to matters within my knowledge as a former employee of the HDC. I have previously given evidence in the High Court on behalf of the HDC and I have only recently filed an affidavit in support of the HDC’s position in another High Court matter. I am no stranger to and have given evidence repeatedly at Commissions of Enquiry including in the Piarco Airport Enquiry, the Landate Enquiry and the UFF Commission.
I wish to make my position abundantly clear that, were I to be subpoenaed or contacted to give evidence at the Commission of Enquiry into the Las Alturas Project, I would have absolutely no difficulty in assisting the Commission.
In his self-appointed role as guardian of the public conscience, Mr. Raymond ought to be more careful about permitting his officious zeal to lead him into making what can be considered to be defamatory imputations about others. Mr. Raymond’s self-confessed inability to locate any published responses from me to press reports he has read is no licence for him to do so.
Noel Garcia.
This clarification was all we were seeking, so I responded later that night, on social media, as follows –
“…Noel Garcia’s post ‘Getting the Facts Right’ is very helpful, it is the first public response I have seen to the several articles earlier on this issue – I thank him for it…as I said elsewhere on FB yesterday, one of the Officials in the Las Alturas Enquiry told me that they had been ‘unable to locate’ Mr Garcia, to which I responded that as he was the new UDECOTT Chairman, it was now impossible to sustain that claim…”
For ease of reference – these are the previous press reports –
“Chairman of the commission Mustapha Ibrahim noted Garcia’s participation in the enquiry was necessary, as he was a “very important witness”…“
“No. We haven’t done so but obviously that is something that I could take instructions on. I am told we lost communication with him at the moment. So that is the position but we will make further efforts but in the meantime, the position is the Commission may consider whether to call the Board at the time and/or see when Mr. Garcia is available.’…” There is also a TV clip here.
I have not seen any responses from Noel Garcia before his response on Sunday 27th September 2015.
This article is about the Las Alturas Enquiry into the collapse of two new Morvant apartment buildings erected by China Jiangsu International Corporation (CJIC) for the Housing Development Corporation (HDC). This Enquiry seems a politically-motivated one into a serious failure of professional practice which could have cost human lives. It is only in its opening stages, but it is already clear to me that this episode is one which contains serious lessons for our country in terms of the role of Enquiries; the role of the Chinese contractors; the culture of non-enforcement which we practice and of course, the impact of targets and political objectives on proper process. In the case of Las Alturas this is a large-scale multiple-housing project constructed on a former quarry-site on the Lady Young Road, just south of the lookout. Two apartment buildings which were completed in late 2010 were eventually declared uninhabitable due to severe cracking and the proposed demolition of those structures was announced at the end of May 2012. Each building comprised 24 three-bedroom/two-bathroom apartments, with the total cost of those buildings stated by HDC to be in the $29M range. The buildings were erected by CJIC on the design/build basis which usually places all responsibility for soil investigation, design and construction onto the contractor.
The JCC offered to work with HDC in determining the causes of this serious failure and that offer was accepted, but our joint exercise did not last very long. The Commission of Enquiry was announced in September 2014 by the Prime Minister and despite the serious nature of the failure at this project, it seemed to suggest an attempt to discredit the Leader of the Opposition, Dr Keith Rowley, who was Minister of Housing between 2003-2007. I still feel that it was a poor choice of issue to investigate, given the burning questions at Invader’s Bay, the Beetham Water Recycling Project, UWI Debe and EFCL, to name just a few. The Terms of Reference of the Enquiry were published in the Gazette of 3 December 2014 and a five-month period was stipulated for its Report to be made to the President.The Enquiry, which is chaired by retired Justice of Appeal Mustapha Ibrahim, is to examine the causes of the structural failure of two blocks of apartments built in 2008-2010 for the HDC by CJIC. The other two Commissioners are eminent Structural Engineers, Dr. Myron Chin and Anthony Farrell. We have also seen reports of the contractor, CJIC, declining to appear at the Enquiry. I consider that refusal to be deplorable and a real sign that serious penalties need to be attached to that course of action. As it is, the fines for non-attendance are nominal, so people can refuse on a whim, since there are few prosecutions for that.
The really stunning revelation here is that the State was aware, since 2011, that these two buildings at Las Alturas had to be demolished. Despite this, CJIC was able, from early 2012 onwards, to compete for and secure the $500M+ contract for UWI’s Debe campus. The JCC protested at the poor process used in procuring that large-scale project. UWI Principal Professor Clement Sankat was advised that in view of the poor performance by CJIC in local State projects – including UTT Tamana, ETeck Wallerfield and various EFCL – no proper evaluation could proceed to recommend that further contracts be granted to that firm. Given that the normal pre-qualification process requires prospective bidders to identify claims, litigations or disputed matters, one can only wonder how CJIC was able to prevail in that project.
One of the seldom-discussed findings of the Uff Enquiry was as to the lack of any culture of enforcement of contracts in the State construction sector, as set out in the sidebar. So, I was both thrilled and intrigued by the headline in this newspaper on Friday 6 March 2015 ‘HDC to sue Chinese contractor‘. The role and reputation of Chinese contractors in the local market have long been a bone of contention for the JCC. That statement was made in opening remarks by Vincent Nelson QC, who is the lead Counsel for HDC at this Enquiry –
“…The Housing Development Corporation (HDC) is moving to pursue legal action against China Jiangsu International Corporation (CJIC), the company contracted to construct the two towers at Las Alturas, Morvant, which subsequently had to be demolished because of structural damage resulting from land slippage. Attorney for the HDC, Vincent Nelson, was adamant about this as he delivered his opening statement at the Commission of Enquiry into the housing project yesterday at the Caribbean Court of Justice in Port of Spain…”
The culture of non-enforcement, considered with the chiefs at HDC (who transferred there after abruptly departing Caribbean Airlines), together with the special influence seemingly enjoyed by the Chinese contractors, all make me very sceptical as to whether a real and forceful lawsuit will ever emerge against CJIC.
Finally, one needs to consider the detrimental role of politically-motivated overambitious targets. The 2002 National Housing Policy set an unforgettable target of 100,000 new homes to be built in 10 years, which translates to an annual average of 10,000, which means a literally impossible 200 homes per week. Those are the facts behind the bizarre ‘numbers game’ which in turn likely had a decisive influence on the decision-makers at UDECOTT, HDC and of course the Housing Ministry. It would be useful, in this season of 100 houses a week and a billion dollars in land each year being promised, to reconsider the role of over-ambitious targets in distorting proper process.
This is only an outline, but it is instructive –
We have also seen reports that both UDECOTT and the HDC were resistant to any reduction in unit numbers on the site.
“Holding to account 29.21. …A recurrent feature of practice in the construction industry in Trinidad & Tobago is the extent to which rights and obligations prescribed by the Contract are or are not enforced. A simple example, discussed above, is the apparently mutual ignoring of contract provisions…”
At page 271 –
“…29.26. Underlying all the foregoing, however, is the question of enforcement of contractual rights and duties. What has been observed by the Commissioners is a culture of non-enforcement of rights, which appears to operate mutually, for example, by contractors not pressing for payment of outstanding sums while the employer does not enforce payment of liquidated damages. Whatever the explanation, the non-enforcement of contractual rights available to Government is a serious dereliction of duty on the part of those charged with protecting public funds. Equally, the non-pursuit of sums properly owed to commercial companies is a dereliction on the part of the directors of that company…”
The key point disclosed here is that contractual rights are seldom enforced in State contracts. A move to such a regular practice would require a major shift in our country’s governance culture.
This article is to engage the issues of falling national revenues due to price declines for fossil fuels, the ongoing commentary and the PM’s 8 January 2015 statement with its attendant criticisms. I am going to focus on the role of the real estate and construction sectors in this unfolding series of serious challenges.
This is the graph and table from my previous budget commentary ‘A Fistful of Dollars‘ to illustrate the trend in terms of how successive governments have attempted to balance revenues and expenditure.
| Year | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 |
| Revenue | $24,016 | $34,129 | $35,126 | $40,381 | $49,465 | $36,664 | $41,284 | $47,000 | $50,736 | $55,041 | $60,351 |
| Expenditure | $27,918 | $34,119 | $38,054 | $42,261 | $44,206 | $36,915 | $49,016 | $54,600 | $58,405 | $61,398 | $64,664 |
| Surplus/Deficit | -$3,902 | $10 | -$2,928 | -$1,880 | $5,259 | -$252 | -$7,732 | -$7,600 | -$7,669 | -$6,357 | -$4,313 |
The Public Procurement & Disposal of Public Property Bill was passed by the Senate on Tuesday 16 December 2014, completing its journey through the legislative process. That is an historic achievement for our country, so it is essential that we take our bearings and properly record the moment.
This important new law to control transactions in Public Money was the objective of a long-term, collective campaign by the Private Sector Civil Society group (PSCS) of which JCC was a member. The JCC met with the leaders of the Peoples Partnership in April 2010, with one of the key promises emerging from that meeting being that new Public Procurement laws would be passed within one year of an election victory. It has taken four and a half years for the government to achieve that.
This achievement was only possible because of our collective efforts. Ours was a diverse group which resolved to campaign together for this critical reform of our country’s laws to ensure effective control over transactions in Public Money. Continue reading “Public Procurement Priorities”
The continued dispute over the Debe-Mon Desir Link of the Point Fortin Highway and the growing public debate over this issue require further attention to certain critical aspects.
The Armstrong Report
was published in March 2013 after a process agreed between parties to the dispute over this highway link. It is a significant achievement in the journey to a more considered and consultative approach to national development. Given the shifting grounds of the dispute and the nature of the various statements, it is necessary to clarify some of the key issues.
The three main issues to be clarified are –
The State’s position in relation to The Armstrong Report is a critical element of the dispute, so it is important to detail how this has morphed, like so much else in this matter. The Ministry of Works & Infrastructure Press Statement of 3 December 2012 ‘welcomed the inputs…from the JCC, FITUN, T&T Transparency Institute and Working Women‘ and went on to note that ‘the discussions had been very fruitful‘. That statement settled a basic framework for a Review of the elements of the link which were in dispute, with the preliminary Report to be provided within 60 days ‘to NIDCO for its consideration and publication thereafter’. Some people have tried to restrict the meaning of NIDCO’s ‘consideration’ of The Armstrong Report to a merely editorial vetting which implied no commitment to any post-publication consideration. The only conceivable reason for a party to this kind of process to have the right to review the preliminary Report would be to address factual errors in a situation in which the completed Report is of some significance.
At the post-Cabinet Press Briefing on Thursday 14 February 2013, the then ‘line Minister’ for NIDCO, Emmanuel George, said that the Report gave the State the ‘green light’, thanked the members of the Highway Review Committee and was reported to have agreed to ‘…as far as possible, accommodate their suggestions and recommendations…‘.
The only reasonable meaning to put to the State’s actions and agreements at the time was that there was a commitment to consider the recommendations of the Report. Of course we are now hearing from officials that there was no commitment to adopt or consider any of the recommendations in The Armstrong Report.
As a reality check, just ask yourself what would have been the position if The Armstrong Report had fully vindicated the State’s actions.
You see?
The high cost of halting construction is the main argument being used by the State to criticise The Armstrong Report and in its litigation with the Highway Re-Route Movement (HRM). On 25 February 2013, NIDCO wrote to JCC with its comments on the preliminary Report and the first page of that letter noted its concern that no consideration had been given to the fact that a $5.2Billion construction contract was in existence for this project. (Comment #2 on p. 30) That complaint is fundamentally misplaced, to say the least, since technical and scientific reviews do not normally take financial or commercial elements into account as material considerations.
At the level of general principles, two examples can clarify the position. In the widely-used two-envelope tendering situations, the tenderers submit separate technical and financial proposals, which are examined independently, with points awarded for each. The eventual selection is made after considering both those scores.
The most recent Commission of Enquiry was announced by the Prime Minister on 18 September 2014 into the HDC apartment blocks which had to be demolished in 2012 at Las Alturas in Morvant. (pp. 68-70) When HDC recognised that the stability of these newly-constructed hillside apartment blocks was in jeopardy, they obtained technical advice from professional engineers. It is doubtful whether those reports considered the financial and commercial fact that the building had already been erected or the losses that would accrue if they were to be demolished. Very doubtful. Indeed, one would rightly be suspicious of technical advice which was coloured by commercial considerations.
The JCC wrote to NIDCO on 10 October 2014 to request a detailed statement as to how the ten recommendations of The Armstrong Report had been treated and we met with NIDCO’s team on 17 October to discuss that request. NIDCO agreed to provide the details to JCC by Friday 24 October, but that reply is still awaited at the time of this writing.
Now, to deal directly with NIDCO’s criticism of The Armstrong Report, we need to note two facts –
Proceeding from the general principle to the particulars of this case, it is therefore clear why the Highway Review Committee did not consider the contract as part of the review process.
Note also that NIDCO has not submitted the contract to the Court during this extended litigation with the HRM.
Submitting the contract to either the Highway Review Committee or the Court would have exposed the underlying financial and commercial arrangements, as well as the repeated claims of adverse cost implications, to critical scrutiny.
Lastly, there is now a series of new statements emerging from the HRM and its supporters which did not form part of the original concerns of that group. The most striking of these is that the highway contract was not tendered. That allegation can be found in the HRM’s International Media Release of 24th September 2014 on their Facebook page and on the AVAAZ campaign webpage, as well as in other media statements by various persons supporting the HRM. That assertion is most alarming for two reasons.
Firstly, that is an entirely false assertion since the highway contract was tendered in 2010. Consider this extract from the top of page 19 of The Armstrong Report –
…On May 07, 2010, the closing date for this procurement, three proposals were submitted by 1.00 p.m. (from the 29 Request for Proposals issued)
The three entities submitting tenders were, in alphabetical order:
- China Railway Construction Corporation Limited;
- Construtora OAS Ltda (OAS); and
- GLF Construction Corporation…
On May 13, 2010 The NIDCO Evaluation Committee submitted its Final Report and recommended OAS as the Preferred Respondent, and so informed OAS by letter dated May 25, 2010…”
Secondly, those baseless assertions by the HRM show a lack of familiarity with the contents of The Armstrong Report. The HRM has relied heavily upon The Armstrong Report in its recent campaigning, so one can only wonder at the implications of these repeated claims.
Given the public positions taken by the protagonists, it seems unlikely that mediation can be a real option.
The Armstrong Report is a serious advance in terms of our nation’s development, being to my knowledge the first Civil Society review of a State-sponsored project in the Caribbean region. That Report would not have existed without Dr. Wayne Kublalsingh’s sacrifice, but the full benefits of the Report can only be realised by a proper and open consideration of its recommendations. Only then can we gain from the increased public attention to the complex issues of national development and really start to learn the lessons.
National development is a real and inescapable challenge which will continue to evolve, whoever is in government. That challenge can only be properly addressed by a fact-based approach adopted by all parties.
AfraRaymond.net 