Media reports say Airports Authority awarded $47M contract in breach of rules

Media reports in Trinidad and Tobago state that the Aiports Authority (AA) approved a contract valued at $47 million on September 21, one day after a company in Central Trinidad won a bid to upgrade the lights at Piarco International Airport.

The reports say the details of the contract are in a letter of acceptance, dated September 21 from the AA to Harry Persad and Sons Ltd.

It was signed by AA's corporate secretary/legal adviser Hayden Newton and stated in part, "We refer to your price proposal for the upgrade of the approach lighting system and the airfield lighting infrastructure at the Piarco International Airport, dated September 20, 2010, and advise that your proposal is acceptable to us," the reports say.

Observers say the letter is merely an acknowledgement of the quotation from the contractor and a statement that the figure is acceptable to the ministry. That does not constitute a formal contract and is not a breach of the AA regulations, they say.

Works Minister Jack Warner is the minister with responsibility for the Airports Authority, which had been without a board since the PNM appointed board led by former cabinet minister John Eckstein resigned at the end of June.

The Trinidad Express said it has been told by a former board member of AA that it is "impossible" for such a contract to be awarded since AA regulations stipulate that the board can award contracts of a maximum of $500,000 in "absolute emergencies".

The Express said it was unable to reach either the minister or the owner of the company for more details.