Senior Reporter
derek.achong@guardian.co.tt
Three contracting companies will not be able to pursue a final appeal over a preliminary challenge to multi-million dollar cartel lawsuit against them, former officials of the Estate Management and Business Development Company Ltd (EMBD) and former housing minister Dr Roodal Moonilal.
In a press release issued yesterday, the Office of the Attorney General announced that the United Kingdom-based Privy Council had refused TN Ramnauth and Company Limited, its owner Taradauth Ramnauth, Kall Co Limited (Kallco), Mootilal Ramhit and Sons Contracting Limited and Fides Limited permission to pursue the appeal.
“The reason given by the Privy Council, contained in its order dated October 8, 2024, is that the Appellants’ application for permission did not raise an arguable point of law or a point of general public importance,” the release said.
It noted that the outcome cleared the way for the case to go to trial before High Court Judge Frank Seepersad.
“The Appellants and Dr Moonilal who have avoided filing their respective defences for approximately seven years, are now required, by court order, to file them on or before November 6, 2024,” it said.
EMBD also issued a release mirroring that of the AG’s Office.
The substantive lawsuit centres around 12 contracts for the rehabilitation of roads and infrastructure, which were granted to five contractors before the September 2015 general election.
TN Ramnauth, Kallco, and Mootilal Ramhit and Sons initiated the proceedings against the State-owned special purpose company for the almost $200 million balance owed on their respective contracts.
EMBD counter-sued the contractors claiming that they, as well as contractors Fides and Namalco, conspired together with Moonilal, former EMBD CEO Gary Parmassar, divisional manager Madhoo Balroop, and engineer Andrew Walker to corruptly obtain the contracts.
It also claimed that the parties agreed to facilitate the contractors receiving preliminary payments for the work which was allegedly overpriced and substandard and utilised a loan, meant to pay for other legitimate contracts, to make the interim payments.
Through the lawsuit, EMBD is seeking $275 million plus interest and a series of declarations against the parties including one on the illegality of the contracts.
At a preliminary stage, TN Ramnauth, Fides and Kallco brought an application to strike out the case.
In August 2020, then-High Court Judge and current Appeal Court Judge James Aboud rejected it as he ruled that EMBD had presented sufficient preliminary facts, which should be determined by the court at an eventual trial.
In agreeing with their colleague in January, Appellate Judges Charmaine Pemberton, Peter Rajkumar, and Vasheist Kokaram ruled that EMBD properly pleaded that it suffered actual pecuniary loss as a result of the alleged unlawful means conspiracy between the contractors and State officials. They noted that although EMBD did not quantify the losses it incurred when it filed the case, it could do so when it goes to trial.
“If or when the report referred to in the respondent’s pleading becomes available the respondent may choose to fine tune its case by amendment,” Justice Rajkumar said.
Justice Rajkumar also rejected claims that EMBD’s pleadings did not properly give particulars linking the contractors to the purported conspiracy so they could mount their defences. He also stated that the pleaded case did not need to show the subjective knowledge of the parties.
“That is because the pleaded actions of the appellants, regardless of the names of any individuals therein, are arguably only consistent with their being the product of conscious, deliberate, and intentional action by a controlling mind or will within each appellant company, designed to dishonestly extract payments from EMBD to which they were not entitled,” he said.
The contractors were represented by Ramesh Lawrence Maharaj, SC, Jagdeo Singh, Kiel Taklalsingh, Jamie Amanda and Karina Singh. EMBD was also represented by David Phillips, KC, Roger Mootoo, SC, Savitri Sookraj-Beharry and Tamara Toolsie.