T&T gov't says nothing to worry about in $b contract for patrol boats

The Leader of Government Business in the Senate has rejected claims by Opposition Senator Wade Mark that a $2.2 billion deal for three multi-million-dollar gunboats for Trinidad and Tobago would collapse because the company handling the contract is preparing to sell off its naval shipbuilding operations. Conrad Enill said this will not affect the delivery of the vessels.

Mark told reporters Thursday because of that deal taxpayers would lose close to one billion dollars in advance payments.

"Based on information reaching us, that particular shipyard was on the brink of collapse in 2005. Am I to understand that the Government was not aware of the state of Vosper Thonycroft...then if the Government was aware, why did the Government proceed to enter into contract with Vosper Thornycroft at a value of $2.2 billion," he asked.

Mark hinted at corruption and produced a letter he has written to British authorities in this regard (see story below).

He said the Government chose the VT Group over the internationally respected Italian shipbuilding firm Fincantieri, which submitted a much lower bid of $1.4 billion.

Mark's letter to Keith McCarthy at the Serious Fraud Office in London urges the British government to launch a forensic investigation into the transaction, so taxpayers could see where their money went.

He charged that the process was flawed and some of the countries that were originally involved in the state-to-state bidding withdrew in frustration, leaving the competition between the British and Italians shipbuilding firms.

Enill didn't address Mark's allegation but with regard to the change in ownership, he told the Trinidad Express the change "does not change the contractual relationships with the organisation."

The contract for the three offshore patrol boats was signed on April 5, 2007, with the delivery of the first vessel expected on May 15, but there's a delay. Mark said national security minister Martin Joseph has now indicated that the first ship would arrive by November and the second by May 2010.