Businessman Emile Elias is suggesting that Government settle an estimated $2 billion debt to contractors through the issuing of bonds.
Emile Elias, executive chairman of NH International (Caribbean) Limited, offered that opinion during a press conference at his company's offices at Long Circular Road, St James, yesterday.
Elias, who was joined by former president of the Joint Consultative Council (JCC) Winston Riley at the press conference, pointed to a 1989 amendment to the Finance Act which allows construction companies to be paid with bonds
"Then they can take those bonds and market them as they see fit to people who are interested in holding bonds to earn interest income," he said.
Elias and Riley expressed concern about a High Court dismissal of a claim by contractor Terrence G Wiltshire, of Bynoe Rowe Wiltshire Partnership, who took legal action to recover $14 million from the State for construction work done eight years ago.
The matter was dismissed because the four-year statute of limitation on the lawsuit had expired.The sum represented a ten per cent retention payment on a package of contracts awarded by the Ministry of Education for refurbishment of schools.Elias said the case should be a wake up call to the entire construction industry.
"This debt is genuinely owed and was not paid. Nowhere in the court case has any government–the last one or the current one–pleaded that they did not perform the work properly or at all. They never said that," he said.
"The rest of the industry ought to be cautious. Look at the liabilities that you have and make sure that before they become statued barred you take the appropriate steps to ensure that they preserve the rights of your company and ensure survival.
"To lose $14 million is not easy."
Elias added: "Government is the major client, so many participants in the construction industry hesitated for a long time before they sued the government but unless they take legal action in a four year period they are exposed to a legal defence that says you are out of time and it has nothing to do with the fact that one has served loyally and properly."
He appealed to Prime Minister Dr Keith Rowley to "do what is right" and the money owed by bonds "which they are legally and properly entitled to do."
"Cash can also be raised from the banking systems to settle these outstanding liabilities," he said.
Riley suggested that a Late Payment Act be implemented.
"When a government have a very large footprint in the industry and you have them owing monies that go back three to four to five years and people suffering as a result of that, there should be a Late Payment Act. Such an Act was passed in England and other European countries," he said.
Wiltshire vs The State
Under government contracts ten per cent is withheld upon completion and hand over of the project so that any defects can be remedied.In the matter involving contractor Terrence G Wiltshire, the contracts were completed during the period 2008-2009.
When the matter wenut before the courts, the Attorney General's Office moved to have the matter dismissed out on the basis that it was statute barred as Wiltshire waited longer than the four years legal limit to make the claim.
In an oral judgment delivered at the Hall of Justice on Tuesday, Justice Frank Seepersad ruled in favour of the State but expressed disquiet at the outcome of the matter.
Wiltshire vs State
Under government contracts, ten per cent is withheld upon completion and hand over of the project so that any defects can be remedied.In the matter involving contractor Terrence G Wiltshire, the contracts were completed during the period 2008-2009.
When the matter went before the courts, the Attorney General's Office moved to have the matter dismissed out on the basis that it was statute barred as Wiltshire waited longer than the four years legal limit to make the claim.
In an oral judgment delivered at the Hall of Justice on Tuesday, Justice Frank Seepersad ruled in favour of the State but expressed disquiet at the outcome of the matter.