Tuesday February 9th, 2010
- Last update:14 hours 45 min ago
$6.7m disparity in helicopter contract
Published: 26 Aug 2009
Close scrutiny of the Government’s contract with the Italian-owned, helicopter manufacturer AgustaWestland reveals that the contract figure quoted by the company is US$1.07 million (TT$6.7 million) less than the numbers cited by Trade Minister Mariano Browne last week. On July 30, Italian defence and aerospace giant Finmeccanica announced that its wholly-owned subsidiary, AgustaWestland, had been awarded a contract by the Government of T&T to supply four AW139 helicopters. The contract, according to the Italian company, which also includes an extensive training and logistical support service for five years, is valued at US$348 million (TT $2.188 billion).
But Trade Minister Mariano Browne, in a letter to the editor published as a commentary last Friday, disclosed that the Government proposed to pay US$93.56 million (TT$589.43 million) for the four helicopters, US$125.77 million (TT$792.26 million) for the training package and US$129.74 (TT$817.42 million) for the maintenance package. When tallied, the minister’s numbers total US$349.07 million or $2,199.11—some US$1.07 million more than the contract amount cited in the Finmeccanica news release. The disparity in the numbers was first noted by a blogger on the Guardian Web site who goes by the tag, “la diva.”
A Guardian e-mail to AgustaWestland spokesman Geoff Russell yesterday morning, requesting that the company account for the disparity, was not answered up to press time. In his letter, Browne also stated that “negotiations are underway” with the US Ex-Im Bank and Bank Paribas for the training and maintenance components of the contract which together are worth US$255.51 million (TT$1.6 billion). On August 12, the US Ex-Im Bank issued a statement in which it said that it was “guaranteeing an approximately $80 million, ten-year loan from BNP Paribas of New York, N.Y.”
Ex-Im Bank chairman and president Fred Hochberg said the export credit agency was “especially pleased to support this transaction” because it “also paves the way for follow-on business for this company to export training and other services for years to come.” The US Ex-Im Bank is co-financing the transaction with Italy's export-credit agency SACE. The US Ex-Im Bank statement disclosed that two of the helicopters will be delivered in September 2010.
So we going to fire Trade
So we going to fire Trade Minister Mariano Browne.
The man also said he was buying them from USA.
$6.7m disparity in
$6.7m disparity in helicopter contract
- Large contracts like these always have some leeway for "contingencies" as experienced with almost every large project the government undertakes. (US$1.07M is small). Hugh overruns have become the norm and all these Commission of Enquiries lead nowhere except to line the pockets of lawyers costing the Taxpayers even more. (Calder Hart has not resigned - yet)
I guess this is going to be just another “unpopular” decision already made by Mr. Manning (already budgeted for in 2010 Budget and future budgets) Just like the Smelter Project - the decision has already been made (“we going ahead”) and “we” the taxpayer don’t seem to have any say in these matters. What are the benefits and does this really justify the Cost (in these hard times)? Instead of one Pat Jet we will now own 4 helicopters for his personal domestic transport.
Can you even imagine the discrepancies that will (hopefully) surface when the Mono Rail Project starts????
KNOHO
Sorry KNOHO
Sorry KNOHO
I disagree.
- Large contracts like these always have some leeway for "contingencies" as experienced with almost every large project the government undertakes. (US$1.07M is small).
In my opinion:
1 - Various comments have been made about the Guardian underestimating the true ‘training’ costs and ‘possible discrepencies’ with the sums offered up by Minister Browne. One however, cannot deny the obvious difference of US$1.07 million (unless it was a typo or someone got their foreign exchange calculations knickers in a twist). KNOHO Sir, the discrepancy is in US$, not in TT$ and one cannot even say “perhaps it is for foreign exchange fluctuations”.
2 - Contingencies ought to be already factored in, not factored in after the fact ie. after contracts are signed and certainly before press releases (an official company document) is sent out. Else, where is the extra money coming from? (Rhetorical question). You go and tell your bank want ‘x’ amount to buy your house and then you go back to him/her and say you want “an extra US$1.07 million” for contingencies/overruns. He will/should laugh you out of town. Least we forget, it is OUR money that is being spent here. If Minister Browne & Co had to dip into their own pockets for ‘contingencies’, you can bet your last (s)cent that there would be no need for ‘contingencies’, but, as it is our money… it is not okay!
3 - The blatant oversight in terms of who we are buying the helicopters from is... is... is... a gross insult to our intelligence of the highest magnitude. As someone put it elsewhere, it is as if our politicians do not think we have access to the internet, or know how to use it – never mind read and write.
I have tried very hard to 'find excuses', to make allowances, to come up with explanations for Minister Browne's statement starting out with the inaccuracy of who (Finmeccanica) owns the company supplying the helicopters (AgustaWestland) and I just cannot. Perhaps another reader can help me out?
At first, I thought maybe a staff member got it wrong; then I thought maybe Finmeccanica bought AgustaWestland sometime after 'negotiations' may have started; then I thought "you know, Minister Browne has so much on his plate, perhaps he just didn't know".
Then... I 'woke up'. I thought back to the information I found so easily on both Finmeccanica and AgustaWestland and how I was able to provide website links (in my post here on the Guardian's website) to support where I found that information - rather than just making a blank statement or referring to Wikipedia as my source.
Minister Browne statement of AgustaWestland not being owned by Finmeccanica is in direct contradiction to AgustaWestland AND Finmeccanica's press releases on the subject. In addition, Minister Browne, from what I understand, was "very involved" in the process of buying the helicopters and he/his staff do not know or are unclear as to who owns the company? Even if, they did not know before (God help us), they did not receive the press release or refer to it? How can I believe anything in Minister Browne's statement thereafter?
A lot has been made of 'integrity', 'transparency', 'accountability' and yet our very own government is not doing so in this instance, with a sum of money that looks like an international telephone number! People! Bottomline! This is our money they are spending!!! Dr Eric Williams (may he rest in peace) did not fight to provide ‘free education’ for Trinbago, for us to just sit back and nod our heads. For whatever else he may/may not have done, please do not insult his ‘gift’ to us by finding excuses for the people who have been charged with looking after… our money!
PS. I saw an article that suggests we may be heading back to the IMF to borrow money? Ehem. The last time we did that (early 80s), the currency was... devalued! Why, oh why, oh why are we heading back there again? (Rhetorical question) In view of the world economy as it is and the problems we are having, the expenditure of the 'trustees' of our money really needs to be scrutinised more. If Trinbago were a public liability company, which is how we should view it, think the shareholders (us) would let the management (government) get away with what they are going? What do you think?
La Diva
We have come to accept that
We have come to accept that whatever the Gov't purchases from anywhere, the price will always be higher than the average paid by others. That has to be taken as a given for obvious reasons.
The key issue in this guava season is, do we really need these 4 helicopters when there are so so many other priorities crying out for attention? Is this regime so blind, deaf and disconnected from the general populace and reality?
Prince you asked it, the
Prince you asked it, the answer is in your last line.
I guess that they see us as
I guess that they see us as a bunch of duncey heads who do not have internet access to find out anything. Its also why certain Government Ministers snicker and smirk down at us.
http://dsaltsman.blogspot.com/
I do believe that Manning
I do believe that Manning must be getting senile and he is thinking his name is Castro and in charge of running Cuba. Four helicopters? If they hold a 15 per person capacity..why do we need four or any, as a matter of fact in these times. It is our money that is being used to purchase these things and we will not be benefitting. What about the Blimp? We paid so much money for that and I don't ever see it in the sky again. Is that fulfilling its purpose? Wasted money again.
I have one question, if I
I have one question, if I call the police and say that I am being attacked in my home are these helicopters going to come flying to my rescue????
the waste of time pnm gov't
the waste of time pnm gov't has their priorities stuck up where the sun don't shine...instead of purchasing 4 of these helicopters there are so many other pressing needs that must be addressed....how much more stupid can the pnm get?...the country is in dire straits right now...helicopters should be on the back burner for now and tend to the pressing needs of the people...hopefully they will remember come next elections... YEAH RIGHT!!
Pearce Robinson “$2b
Pearce Robinson
“$2b helicopter contract... Does it add up?”
http://guardian.co.tt/news/general/2009/08/25/2b-helicopter-contract-doe...
in the above article, on 25 August 2009 - 8:10am, you wrote:
Utterly misleading – biased. … When you do your research come back and try and convince me, otherwise, you will continue to be losing credibility for factual information, as it seems you hardly ever speak the truth … Remember to consider what the Minister said:… 2) It is going to have a 15 on board capacity, each helicopter … the normal AW139 helicopters do not have a capacity to hold 15 members on board … so consider the facts please, before coming here to spew your baseless rhetoric.!!!!!!!!!!!
Mr Robinson, Sir.
May I invite you to visit the website of Agusta Westland and visit the page that contains information on the AW139 please. I have taken the liberty of posting the link here for you - http://www.agustawestland.com/product/aw139
In the event you are a man on many missions and do not have the time to visit Agusta Westland’s website for some original, basic research, I have pasted some of the product information for you:
The AW139 is a new generation medium twin-turbine helicopter setting new standards against which all medium twins are measured. Designed with inherent multi-role capability and flexibility of operation, the AW139 is capable of carrying up to 15 passengers at very high speed, in a most spacious and comfortable cabin.
Therefore, based on the above, I would assume that the helicopters being able to carry 15 passengers "at a very high speed, in a most spacious and comfortable cabin", is standard with the craft ie. comes with every basic ‘buy off the shelf model’ and not something that is being designed/created specifically with us, the ultimate owners of the craft, in mind.
In addition, the product page also goes on to say… HARBOUR PILOT SHUTTLE
With excellent handling and outstanding OEI performance the AW139 is ideally suited to the harbour pilot shuttle role as well as other maritime support tasks.
Here, I will put my beautifully manicure hands up and say that I am out of my depth when it comes to craft and ‘maritime support tasks’. Perhaps another reader can clarify but it suggests to me that the helicopter as a basic model is designed with some maritime support tasks in mind and therefore not an ‘optional extra’. But, like I said, I cannot say for sure on this one.
As I would not want to do all the basic research for you, I invite you to review the product page.
By the way, what is so special about Trinbago that we need to have a specially custom built AW139 that ‘on the surface’ appears to cost so much more than any other country that has already ordered/received the AW139? As much as I hate to say this, other countries have requirements for:
- multipurpose aircraft, for search and rescue, domestic fight against the drug trade (as written by you)
I could be wrong, but it appears the basic ‘buy off the shelf model’ comes with a lot more functionality (including engines AND rotars!) than you may have the impression of.
May I suggest Sir, now that you have had a go at the Guardian for what you perceive to be misleading and poorly researched information, you also have a go at Minister Browne for the inaccuracies contained in his statement. For me, that statement lost a lot of credibility for ‘the factual information’ it was supposed to represent, after my own basic research revealed that the opening line of the supplier’s press release starts with AgustaWestland, a Finmeccanica company. My basic research corroborated the Guardian editor's note rather than raised more questions than answers. Sadly, I cannot say the same about Minister Browne's statement...
La Diva
So here we go again,what's
So here we go again,what's new.Seems like every time this government is involved in a contract there is always a disparity.This does not trouble me as much as they are spending 2.Billion on helicopters when thousands of our citizens are living under third world conditions.Basic needs they don't have like proper housing,efficient water and power supply,bad or unacessable roads,can't afford to send their kids to school and of course most are finding it more and more difficult to put three square meals on the table.I ask Mr Prime Minister have you ever steered into the eyes of a hungry child who only meal (if you want to call it that) for the day was a slice of bread with butter and a cup of sugar tea?I guess not else you would have different priorities.Are we ever gonna have a government who really cares about the people needs or are doomed to be like so many other wealthy nations where only a few enjoys the spoils of the land."WAKE UP MY PEOPLE ARISE FROM YOUR SLUMBER"
Curtis
I ask Mr Prime Minister
I ask Mr Prime Minister
have you ever steered into the eyes of a hungry child who only meal (if you want to call it that) for the day was a slice of bread with butter and a cup of sugar tea?I guess not else you would have different priorities.
Looks like he and others of Team Manning have not, else they would not be making these [insert word of choice] decisions.
Some of these same team members probably had childhoods where they too experienced hunger but... sadly... either they have forgotten or are in denial...
rulbp21, Trinbagonians have to:
a) recognise that it is our money that the government is spending - even if they have never paid a dollar in taxes, the oil revenue, the tourism dollar etc etc is ours!
b) rally together and forget Indian, African, Chinese, Syrian, Cuban or whatever, because at the end of the day, a stray bullet or someone breaking into your house to steal your hard-earnt possessions is not discriminating!
La Diva
I believe that Manning needs
I believe that Manning needs the 4 helicopters so that he can fly one in the east, one in the west, one in the north and one in the south!
Martin
I was actually being
I was actually being sarcastic when I said “Contingencies”
Sorry Guys / Divas,
I am aware of contingency clauses and the need for them (budgeted or not). I was actually being sarcastic when I said “Contingencies” – I was actually implying that this is just another means to pad or line some (local) official’s pocket.
I am actually in Total Agreement with all of your comments. It takes a change in government before any real exposure of corruption is initiated (e.g. Piarco Airport Project) Witch-hunt maybe, but at least something positive was done to bring it to light. This doesn’t mean that those in power do not continue the tradition to skim via over pricing contracts, giving favourable contracts to friends, family or associated companies for a commission or management fee. At this point in time, it is my belief that certain ministers can retire comfortably due to these gains or reciprocation of favours.
See, we are on the same page.
KNOHO
Diva don't let them put you
Diva don't let them put you off, some people miss the trees in the woods, I believe you, and you have facts, cut and pasted, Well done, you are a forensic accountant? and others talk of why does TT need 4 helicopters at this time? agree also, when we need other things in preference?
KNOHO Thanks for
KNOHO
Thanks for clearing that up. Delighted to see we are on the same page. Next time you are being sarcastic, please be kind enough to indicate so. You would have saved me a lot of time, putting together that response, such was my concern for my manicure. (^_~)
(Independence Day Celebrations on the horizon. La Diva has to be looking her best. (^_~))
La Diva