The government of Trinidad and Tobago will end a contract signed by the previous Manning administration for three offish ore patrol boats for the coast guard.The contract with BAE Systems to build and commission the vessels was worth TT$1.5 billion. The PNM administration signed the contract in April 2007.
A report from the REUTERS news agency quoted BAE Systems as saying that the Trinidad and Tobago government had sent it a notice advising of the cancellation. The report said, "Whilst the programme has suffered from delays, prior to the receipt of the notice from the GORTT the parties had been engaged in the final stages of acceptance of the first ship. The second ship has completed its sea trials and will be ready for delivery in October. The third ship is due to begin sea trials in November. "Cost overruns on the programme resulted in cash adjustment to the acquisition consideration and further provisions were charged to the acquisition accounts for that transaction. "Whilst the financial consequences of any termination cannot be definitively assessed at this time, the Group estimates a further charge of up to £150 million, before tax, may be required in the Group's accounts for 2010, before recognising value from the potential re-sale of the vessels. "The company will seek to engage in commercial discussions with GORTT to find an equitable settlement." The cancellation was also confirmed in the prestigious journal, JANE's.
Attorney General Ramlogan is on record as saying the Government was reviewing the transaction in light of the breach of contract on the delivery date.
He said then: "There are legal, financial and security implications to this transaction that require critical and objective review by the Government, bearing in mind our competing expenditure priorities and the alternative use to which this money can be put in the fight against crime."
No comments:
Post a Comment