The family of PNM local government campaign manager John Rahael received project contracts from the previous PNM administration which amassed more than $1 billion in cost overruns, Attorney General Anand Ramlogan claimed yesterday. In his maiden address to the Senate regarding a motion on the economy, Ramlogan listed a litany of PNM projects with cost overruns and cited other alleged irregularities and "deals" of that administration.
The AG particularly levelled accusations at projects in which he said Rahael family companies–Trinity Housing and Broadway Properties–were involved. However yesterday, Alwin Chow, chief executive officer of Trinity and Broadway, said Ramlogan's claims were: "Totally and absolutely false and irrevocably wrong." Chow, a former Independent senator, added: "I know the Honourable Attorney General will correct this at the first opportunity. It is so wrong–it is complete misunderstanding of the facts. There is not even a scintilla of correctness in this." Chow said a lot of what Ramlogan read out concerning Broadway as cost overruns was actually the original contract values. Chow said Trinity was the construction arm of the companies.
Ramlogan said the PP Government had inherited an economy burdened with many "deals and price tags."
He said: "The economy is not in as good a shape as it could or should be–that's the reality we face. "The main reason for the present state of the economy–good, bad or ugly–is mismanagement, waste and corruption of the previous administration... it is deals, deals and more deals," he claimed. "Everywhere you turn there was a deal...every ministry, every file on government operations." Ramlogan claimed that Trinity Housing owned by the Rahael group constructed 138 units at Orchard Gardens, incurring cost overruns of $50 million. He claimed another development at Corinth Hills was done by the same company, incurring cost overruns of $128 million. Ramlogan also noted Trinity Housing projects with cost overruns including East Grove in Curepe ($64 million), Bon Air (an original $13 million contract with $19 million in cost overruns) and Greenvale Park ($156 million in cost overruns.)
He also cited Broadway Properties–whose managing director is listed as Joseph Rahael–which was contracted to build schools.
Ramlogan listed delays and cost overruns on several of those projects–Couva Junior Secondary ($172 million), Barataria Junior Secondary ($149 million), Pleasantville Junior Secondary ($150 million). He said Osha laws virtually closed down the contract for the Pleasantville project due to safety concerns. Ramlogan said the information was often "secreted" and concealed and getting it from the public service was often a challenge. He said, however, the situation revealed that one group loyal to the former ruling party–whose local government campaign is being managed by Rahael–received the projects. Outlining cost overruns in other areas, Ramlogan said that in ten national projects (out of 70) done by Udecott, there were also more than $4 billion in cost overruns with the equivalent of more than 20 years' delay.
Overruns
�2 Chaguanas Corporation administrative complex–over budget by $10 million–24-month delay.
�2 Chancery Lane complex–$300 million over budget–24-month delay.
�2 Government campus and Legal Affairs tower–$300 million over budget–18-month delay.
�2 Waterfront project–$1.3 billion over budget–six-month delay.
�2 Education Ministry tower–$300 million over budget–20-month delay.
�2 Performing Arts Centre–$234 million over budget–one-year delay.
�2 South PRC–$238 million over budget–13 months overdue.
�2 Beverly Hills Housing–$106 million cost overrun–65-month delay.
�2 Lara Stadium–several million cost overrun–41-months delay.
�2 Diplomatic Centre–$700 million cost overrun–five-month delay.