UK shipbuilder offered T&T defective patrol boats: Sandy

The Minister of National Security told the House Representatives Friday the British firm BAE Systems offered the Government of Trinidad and Tobago defective offshore patrol boats (OPVs).

John Sandy was responding to a question from former Works Minister Colm Imbert who asked about the government's decision to scrap the contract for three OPVs ordered by the previous Manning administration of which Imbert was a cabinet minister.

Sandy said BAE proposed that the government take delivery "despite the fact that the combat system defects would materially prejudice the operational capabilities of the vessels". He said BAE did not provide a satisfactory guarantee to rectify the problems once the government had taken delivery.

Imbert asked whether the problems were serious enough to cancel the entire OPV project, to which sandy replied, "No". However he added, "there is no one in this august chamber who would purchase a motor vehicle that is defective,"

He added, "And in particular when that defect interferes with your firing capability, which is the basis of having that facility out there, then I would respectfully submit that it ought not to be acquired."

The government has scrapped the $1.5 billion deal and Prime Minister Kamla Persad-Bissessar has said BAE would have to provide a full refund in addition to more than $60 million in compensation.

BAE and Attorney General Anand Ramlogan would lead the discussions on behalf of the government. The cancellation of the contract becomes official on Sunday.
Sandy told MPs the Government is exercising contractual rights expressly negotiated and agreed with BAE. 

"These are rights designed to protect the Government in circumstances where the Government is left with no other remedy," he said.

"If the Government were cancelling the contract for its own convenience, then it would owe money to BAE. But this is not the case. The Government is cancelling by reason of BAE's default," he said.

"Additionally, when the cancellation notice takes effect, the Government will become entitled, among other things, to a significant refund of monies paid to BAE for the undelivered vessels," he said.

He added that the decision to cancel the order does not affect the country's defence capability. "Rest assured that the country is well protected and that this Government stands ready to bolster the naval and aviation assets of the country, as necessary," he said.