Senior Reporter
dareece.polo@guardian.co.tt
Former energy minister Stuart Young is calling for a criminal investigation into the Housing Development Corporation (HDC) after the disclosure of a $3.4 billion list of housing contracts he describes as a “cartel-type” abuse of public funds.
Speaking at the Opposition’s weekly media conference yesterday, Young alleged that the state housing authority used selective tendering to bypass transparency and direct contracts to a hand-picked group of contractors.
Selective tendering involves inviting bids from a pre-approved list rather than through open public competition.
“It is a cartel-type behaviour that is before the courts in EMBD, and that took place at EFCL in that 2010 to 2015 period,” Young said.
He argued that the process was manipulated to predetermine outcomes.
“Yes, they say that they were in fulfilment of the procurement laws. Not true! Because the way bid rigging works is if five of us are chosen, because that is what it was. It was selective tendering. It was not open tendering. So you select five people, knowing that you want to give it to one of the five, knowing that the other four are not competent to get the contract, and you end up giving it to the person that you wanted to give it to. And that is what is going on.”
The disclosure outlines a hierarchy of awards, with Mootilal Ramhit and Sons Contracting Ltd receiving $1 billion. Other major allocations include $446 million to California Stucco Company Ltd, $410.3 million to Hakim Hosein Construction Company Ltd, and $290 million to Trinidad Pro Construction Ltd.
Young also alleged political links, claiming one of the companies is connected to the Government as well as the Tobago People’s Party.
“We in the PNM are calling for a criminal investigation into this procurement process. We are also going to be challenging the Office of the Procurement Regulator and looking at the legality of this because selective tendering is not to be abused. You can’t say, ‘well, I’m selecting four persons who are not qualified’ to give it to the fifth who is.”
He questioned the capacity of several contractors, saying some have no track record in residential construction or were incorporated as recently as this year.
“A billion dollars where you’re not even paying the nurses, you’re not paying public servants on time? You find $3.4 billion to give out in this manner?” he asked.
“Was the cabinet informed? And furthermore, did the cabinet approve $3.4 billion? Are they gonna say, well, the cabinet doesn’t get involved because it’s under public procurement legislation? Rubbish. Where’s the HDC getting the $3.4 billion? Who is it that decided this? Were the ministers involved? Or is it the chairman and the acting CEO? Because many of these companies, and I challenge the media to go and search it, have never built a home before,” he said.
Young said the Opposition is not against small contractors receiving opportunities, but argued that the current approach risks wasting public funds.
He also pointed to other major projects—including works at the Debe campus, port expansion, developments in Tobago and electric vehicle procurement—as areas requiring scrutiny.
Guardian Media sent questions to the Office of the Procurement Regulator. An official acknowledged receipt but did not provide a response up to publication.
Prime Minister Kamla Persad-Bissessar and Housing Minister David Lee also did not respond to calls and messages. However, speaking outside the Senate on Tuesday, Minister in the Housing Ministry Phillip Edward Alexander defended the process, saying it was conducted in keeping with the rule of law.
Meanwhile, attempts to obtain comment from TTPS officials, including Police Commissioner Allister Guevarro, were unsuccessful.
