THE Commission of Inquiry into the Piarco airport project continues at the Caribbean Court of Justice, Port-of-Spain.

The Commission sat for four days, since the lack of air-conditioning on Monday forced the Commission to adjourn without hearing evidence.

Following is a review of last week’s hearings.

TUESDAY

NCL’s millions paid to Fidelity Finance

FIDELITY Finance Leasing Company (FFLC) Ltd received all monies paid to Northern Construction Limited (NCL) by NIPDEC for work done under the Piarco airport project, as a result of an agreement signed between FFLC and NCL.

Meantime, the Ministry of Works and Transport (MOWT) has refused to pay some $12 million to NIPDEC for variations. The matter is to be referred to the “close out” committee of Cabinet to be resolved. And Birk Hillman Consultants (BHC) can be sued for breaching its contract by not implementing the Institutional Strengthening Programme (ISP).

This was revealed on Monday by Peter Cateau, the MOWT client representative on the project, when he continued giving evidence at the Commission of Inquiry into the Caribbean Court of Justice, Port-of-Spain.

It was Cateau’s eighth day of giving evidence. He was led by attorney Theodore Guerra, SC.

Cateau confirmed that millions of dollars to NCL for works done were made to FFLC, based on an agreement signed between them on September 30, 1998.

The agreement was drawn up by attorney Russell Huggins. Cateau read several letters sent to him from NIPDEC, asking that payments be made for work on various Construction Packages (CP) done by NCL. All the letters reminded Cateau of the agreement, and that monies were to be sent to FFLC. NCL was awarded the contract for CP3 as lead contractor of the NYC consortium as well as for CP’s 5,8 and 9.

Cateau after reading the agreement into the records, confirmed that absolutely all the proceeds of the contracts which NCL had with NIPDEC were to be paid to FFLC.

Cateau further read from a document from NIPDEC sent to him concerning fees for extra work (variations) they did on the project which advised him that their claim was reasonable and it would appreciate an early settlement.

That document quoted NIPDEC’s fees for additional works mostly 4.5 percent which brought their total claims to $12 million.

Cateau told the inquiry to date he had not paid NIPDEC the claim. He said negotiations on the matter had reached a “stalemate” because NIPDEC was insisting that all variations should be paid at 4.5 percent. Cateau said he disagreed because the percentage was too high, since variations involved similar work loads.

He said Cabinet had appointed a “close out” committee and he intended to refer the matter to them for resolution.

WEDNESDAY

Abusive Romano made all decisions

NIPDEC’S General Manager Margaret Thompson on Tuesday confirmed that former NIPDEC Director Trevor Romano, had to be consulted on every issue relating to the construction of the Piarco airport and was the person who made all major decisions and gave approvals for the project.

She said she never knew of any NIPDEC Director who took such an interest in a project like Romano did. She also spoke of Romano using his size to invade her space. She said he shouted, banged on tables, stamped his feet and made lots of threats and called her “obstructionist”, when she tried to raise issues about the project which concerned her. She said after Romano died in 2000 there was a marked difference on the project and she got more involved in the site visits.

Thompson said when she was told she was to assume the position as Acting GM, she felt perturbed at the responsibilities, but she was told it would be for a three-month period.

Thompson said she and her technical staff were not impressed with Birk Hillman Consultants (BHC) and felt they could learn nothing from them.

Thompson was giving evidence at the Commission of Inquiry into the airport project at the Caribbean Court of Justice, Port-of-Spain.

Thompson led in evidence by attorney Margaret Rose, said she became Acting GM in September 1998, after the “sudden” departure of Noel Garcia, who was the GM.

She said she was called by NIPDEC’s Chairman, Edward Bayley, during a Board meeting and told that she would hold the position for three months while an investigation was undertaken on the finances of the project.

She said Bayley told her an audit report had differed significantly from the account done by NIPDEC and Garcia was asked to proceed on leave “for his own good”. She said he told her further that Romano was to oversee all major projects and she was to report to him daily.

However, minutes from a meeting showed that the Board had decided that Romano was to be the liaison between Thompson and the Board on the project. Asked by Rose if Bayley lied to her, judging from what was in the minutes, Thompson said it appeared so.

THURSDAY

Cateau paid Birk Hillman US$1.5 million without approval

THE Ministry of Works and Transport (MOWT) client representative on the Piarco airport project, Peter Cateau, made approximately US$1.5 million in unauthorised payments to Birk Hillman Consultants (BHC).

NIPDEC discovered the unauthorised payments long after the monies were paid, according to NIPDEC’s General Manager, Margaret Thompson.

Thompson, who continued her evidence at the Commission of Inquiry into the project on Thursday at the Caribbean Court of Justice, Port-of-Spin, is expected to provide the exact unauthorised sum paid when she continues her evidence today.

Led by attorney Margaret Rose, Thompson read from a BHC payment schedule, which showed NIPDEC had approved US$17.256 million to BHC, but US$18.3 million had been paid.

Thompson, reading figures from the schedule, said it showed there was a series of payments to BHC without NIPDEC’s approval and that certain sums exceeded NIPDEC’s approved sums and some sums did not have documentation of money being paid.

Thompson explained that after she was made Acting General Manager in September 1998, the schedule of payment to BHC was changed, in that NIPDEC no longer received money from the Ministry to pay BHC.

She said there was an agreement between herself, Cateau and BHC, to have Cateau make the payments.

She said the process was that BHC would prepare a status report and send the invoice to NIPDEC for payment. Once NIPDEC was comfortable with the report, a letter would be sent to Cateau requesting that the money be paid to BHC. Cateau would then forward a memo to NIPDEC informing them he had paid the amount and attach a copy of the cheque given to BHC.

FRIDAY

BHC gave design plan to NIPDEC in “piecemeal” manner

THE ENTIRE design plan for the Piarco airport terminal drawn by Birk Hillman Consultants (BHC) was never shown to NIPDEC, as project managers. As a matter of fact the design was shown to them in pieces, as the construction of the airport proceeded.

Further, because NIPDEC was denied the opportunity to do a Value Analysis (VA), this resulted in costs which could have been saved, Margaret Thompson, General Manager of NIPDEC said Friday, her third day of evidence before the Commission of Inquiry into the Piarco Airport project.

Thompson, led in evidence by attorney Margaret Rose, said the Ministry of Works and Transport client representative Peter Cateau, in a letter to NIPDEC dated October 9, 1998, informed them that doing a total VA at that time was of little benefit to the project and suggested as an alternative, a life cycle cost analysis.

Cateau’s decision, she said, came after NIPDEC had convinced BHC that doing a VA was mandatory under their contract. Thompson said BHC had initially refused to do the VA saying it was not part of their work and requested US$75,000 to do.

She said Cateau’s alternative, wasn’t really an alternative, because that too (life cycle cost analysis) was part of BHC’s contract.

Thompson said NIPDEC subsequently wrote BHC on October 23, 1998, informing them of Cateau’s decision.

Thompson said NIPDEC was adamant that a VA be done because although the work had begun, it would have given them the opportunity to value the remaining work, involving hundreds of other items. She if they had done the “substantial partial” VA, money could have been saved.

Thompson complained that BHC did not give them the whole design, that it was provided in bits and pieces as the project evolved. She agreed it was done in a “piecemeal” manner.

Asked why NIPDEC let BHC off the hook, although they had to do the VA under their contract and Cateau had no authority to tell NIPDEC there wasn’t a necessity for it, Thompson said Trevor Romano, a NIPDEC director, was of the view that it wasn’t NIPDEC’s duty to request a VA.

She said Romano was of the strong view that the Airports Authority had already approved the design and NIPDEC merely had to build the airport, therefore they should not delay and waste time, by insisting on it. She said Cateau’s letter did not help the situation.