The contentious issue of the $51,000 per month contract between construction firm Innotech Services Limited and the Barbados Water Authority (BWA) for the supply of community water tanks, reached the floor of Parliament today with a Cabinet minister declaring that the people of Barbados have been taken for a ride.
Leading off debate on the Public Finance Management Bill 2018 in the House of Assembly, Minister in the Ministry of Finance Ryan Straughn was adamant that such a contract made no sense whatsoever.
Straughn said somebody in the former Democratic Labour Party (DLP) Government seemed not to have read all of the existing financial rules – which are reflected in the new Bill – that require the accounting officer in a department to challenge, in writing, an injudicious financial decision of a minister with which he does not agree and cannot defend.
He said the contract, under which the BWA rented the tanks from Innotech to provide emergency potable water supplies to water-scarce districts in northern Barbados at a cost of more than $3 million over five years, was the result of people allowing a lot of nonsense to take place.
The minister noted that it was therefore necessary to clearly outline in the pending legislation the specific roles and responsibilities of all senior public officers, including Cabinet members to ensure accountability.
“So when we reflect on this issue of the water tanks, sir, somebody should have written something to somebody to say that this thing did not make sense. Nowhere is it written sir, that I am aware of now, that anybody raised this as an issue,” he told the House of Assembly.
He insisted that ministers of Government have to take responsibility for their actions, so too must chief executive officers of state-owned enterprises.
“So you cannot say you are going to engage in something that does not make sense and then excuse yourself by feigning you did not know. Much has been represented to me over the last six months where people either forgot there was a rule or some strange thing sir, simply because people allowed a lot of nonsense to take place. Now that we have come to correct a lot of these issues, people now recall what the rules are,” the minister in the Ministry of Finance pointed out.
Straughn warned that ministers who now get involved in the day-to-day running of SOEs must be prepared to face the consequences, including having to pay back money which is wasted or mismanaged.
“If you do [get involved in daily running of a SOE] then you must be prepared to face the consequences. If you direct something to happen, sir, that does not make sense and is not in the interest of Barbadians, then, sir, you’ll have to be prepared to foot the bill,” he warned.
While Straughn suggested that he might accept Government paying in the region of $250,000 to install 100 water tanks that involved the construction of concrete bases, there was no way such work could cost taxpayers millions.
“So even if we wanted to install 100 water tanks and we said they required some infrastructural work to be done, plumbing and all of these things, for 100 water tanks…even if we’re generous and we say that all of that infrastructural work to pour the cement and steel and all of that, for the concrete bases and installation and we say that that cost $250,000, we cannot be paying millions of dollars renting water tanks,” insisted the minister.
He urged public officers to bring questionable transactions to the attention of ministers to avoid a repeat of the type of contract that was entered into between the BWA and Innotech.
“We are not everywhere all the time sir. So when something does not make sense, people have to bring it to the ministers’ attention that this thing isn’t making sense because when you look at the fine details this is what matters. If we continue to engage in that sir, the people would want to know if we’re mad,” Straughn declared.
Trump style politics. Decry all contracts made by the former government, remake them, and distribute the new packages to loyal party supporters. Who better to twist words, than a professional lawyer like Leodeane. Each letter in that word, has a different meaning, once dissected. The real truth will come out, but not from the masters of deception. Part three of BRET is an increase in water rates, so you start preparing the wicket rom now. It’s the DEMS fault remember that. We came and found tale.
@CROWING JOHNNY; I`m glad you mention Trump. Have you seen that the Generals, Attorneys and even the president is not above the law and when they are summoned to appear to answer question, they have to and very soon Trump will have to answer too while in barbados they are above the law and refused to appear to give an account of the people`s money.
Do just like what the former DLP minister who is overseas in an ankle bracelet and cannot come home for Christmas said: “lock Dem to f**k up!”
He reminds me of Michael Flynn who revved up the crowd in the “lock her up” chant against Hillary Clinton. Now Flynn is facing time in prison for his role in the Russian affair.
Be careful what you wish for others, it just might come right back to haunt you.
Keep your mouth shut Liz, you might bite your tongue.
By the way, I saw your good buddy George Payne on my TV yesterday evening, direct from Parliament. I though it was live from the Apollo Theater. The man actually has a good voice when talking about government’s land, but no reference to poor Jackie Stuart yet. Issues like that bother my conscience, but apparently not his.
nor liz ..seriously it is one thing to gloatbabout others in trouble but be careful it might come back to haunt us…
It is high time that teefin crooked politicians start getting lock up bout hay doah…I doan care which party they belong to.
Carl Harper.
You should have been locked up for the golden shower you got Your husband to build as well as those tiny bubble bee houses. You and all your colleagues for 14 years stole money and now coming here everyday behaving like wunnah is saints I say lock them all up starting from the BLP INCLUDING YOU
Yes the tank deal was a nice one for those involved. $300,000 was invested and a net profit as I said before of between $2.5 million and $2.7 million was made for all involved, as Mr Straughn’s numbers now confirm . lets now look at the BWA building where real numbers lie. I have said before and will again, The PM needs to call in 2 independent Quantity Surveyors and arrive at what the TRUE building cost would be at today’s rate for that building in The Pine. I think if all of the “unseen expenses” were removed it would be no more than $50 million. Once that is done then take the going mortgage rate and attach that to the primary building cost to arrive at the net 15 year cost of the structure inclusive of financing. Once that is done then place on that principal number, the going rate of acceptable return that the banks would use on that investment and pay Innotech that and not a blind cent more! If they want to go to court then lets go and hang all the ” unseen expenses ” out in public for the whole island to hear. Somehow I don’t think they will risk that happening though! So here are how the numbers based on a construction cost of 50 million would play out.
$50,000,000 at 5% over fifteen years amortised is a total investment inclusive of finance cost of $71,117,000. If you factor in to that a generous profit margin of 50% which is kind trust me, the total cost inclusive of finance and a 50% return on investment would be $106,000,000 in total or ROUGHLY $80 MILLION LESS THAN THE CLAIMED COST OF $180,000,000. One could clearly therefor assume based on the above the maximum monthly payment should not be $1million a month for 180 months but more in the area of $106,000,000 / 180 months = $588,000 a month, or roughly half what the former government was willing to pay. Now to be reasonable lets allow a 10% overrun on the project, this would then take it to a monthly payment of $588,000 x 10% = $646,000 monthly in rent. Quite a variance wouldn’t you say between $1 million a month and $646,000 ?
as the old folks says woe betide the taxpayers of this country
@can go to Court, but you won’t win, because, the Minister who was involved is the person responsible for whatever went down and was signed for in GOOD Faith, NOT Innotech, and we have no Laws to make them repay any miss spent Funds, as a matter of Fact that Minister and ALL Ministers of Government, are Protected from any and all consequences by our Constitution.
that is as far as i know, otherwise all the Former Ministers should be in Chains, not just ONE.
Tony we are discussing 2 separate things here. The wrong doing of others is a criminal matter, if in fact any did occur, this would be dealt with in a criminal case. What I am speaking of is a financial matter and that will be decided if it comes to that, in a separate court case that deals solely with the terms of the contract and the building. The matter will however only go to court if both parties cant arrive at an agreement for a revised contract. What the current government must ensure going forward is that we the tax payers are not saddled with a cost that does not reflect the true market value of the assets we are acquiring. This should not only apply to this building but the acquisition of all future assets, be they either buses, garbage trucks or future buildings. What I am suggesting in my above post is the only fair way the public can ensure they are paying a true market value for that BWA building, while at the same time giving the contractor a fair return on his investment. Now there is also the issue of the water tank rentals which clearly have been proven to be ludicrous in terms of cost to the state. Based on that the government have every right to review any and all contracts with this company, as the tank issue clearly was not negotiated in the interest of the state. This happens all over the world from building contracts in the USA, to revaluations of companies hiding behind ” inflated” balance sheets that were discovered prior to the closing of their purchase.
Johnny Crow and Patty what wrong the two of you afraid of the truth coming out about some of those former Ministers of the last government ?Well tough because I believe this is the tip of the iceberg,more to come.Therefore defend and drag up all the past you like the Dems had 10 years to prosecute any of the Bees for wrongdoing and did squat however I hope this lot if found guilty faces the law courts.In my view thinking back now no wonder the ex PM did not wish to call the Elections speaking about setting records well he surely did lost every seat,30 to 0.
I still cant believe ppl here on this page still trying to justify $51,000.00 a month for tanks that the government could have bought for as little as $80,000.00 and had them install for at least $60,000.00. material and labour included, any fool can see that it was an arrangement to benefit or profit someone or more than one person or group (company), nowsince that there is a clause which say the accounting officer can object to such a thing, then its time that the accounting officer if still there be fired and appoint another that will stand and say its a breach and cancel payments, stop saying that ppl must pay for whsat they did and start court proceedings, BAJANS TIRED OF HEARING THAT CRAP, TAKE ATION, THAT MONEY WAS THE TAX PAYERS OF BARBADOS MONEY,