Manning cabinet committed PP government to pay $74M in rent

Government Campus Plaza in Port of Spain

The new government of Trinidad and Tobago is committed to pay more than $74 million in rent over the next three years although there are empty government buildings available.

It's because days before the May 24 general election a sub-committee of the Patrick Manning Cabinet approved a series of real-estate rentals for Government offices in Port-of-Spain and elsewhere.

This happened while the billion-dollar Government Campus Plaza that the Manning administration built remains remains empty and unfurnished.

This information is contained a report in Newsday. The paper said it has seen documents approved by the “Delegated Matters Committee” for the payment of some rentals that had been due for almost a year as well as the renewal of rentals for Government office blocks for a further three years.

One of the companies that got a rent agreement approved between April 19 and May 20 of this year is Nicholas Development Limited, which is owned by Issa Nicholas and his company Issa Nicholas Holdings Limited. The Chairman of Caribbean Airlines, George Nicholas III, is a director of Issa Nicholas Holdings Limited.

"Rent for the property at 39 Frederick Street, owned by Nicholas Development Limited, was approved for a three-year period on April 26, 2010. The rental period was effective from April 1, 2009. The property houses the Public Service Appeal Board and Offices of the Personnel Department. The value of the three year rental is $3.9 million," the paper reported.

Newsday said, "In some cases, the approvals related to rent owed for years to the owners of buildings occupied by Government offices. In other cases, the approvals were to extend the terms of current rentals beyond the General Election year. The average cost–VAT inclusive–per square foot was $8.10."

The paper quoted retired head of the Public Service Reginald Dumas as saying that the timing of the sub-committee’s approvals on the eve of the election raises a number of questions.

“Firstly, if these rent payments were allowed to pile up, why were they only dealt with on the eve of the election? Secondly, why were rents extended to beyond a period in which the Cabinet could not be confident that it would still be in office?” Dumas asked, noting as well that he had never heard of the “Delegated Matters Committee” of the Cabinet.

On May 17, 2010 - one week before the election - the sub-committee approved a three-year rental of property at Nos. 51-55 Frederick Street, Port-of-Spain, for use by the “Accounting Unit” of the Office of the Prime Minister, the paper reported.

It said the monthly rental rate for the 6,300 square feet property $2.3 million over three years, effective from April 1. The building is owned by GV Holdings Limited.

Another 14,985 square feet on the same GV Holdings Limited property had previously been rented for $6.2 million over three years for the Ministry of Community Development, Culture and Gender Affairs. GV Holdings is owned by Victor, Jerry and Jeffrey Joseph of Maraval, and George Joseph of St Clair.

According to the report, on April 29, the sub-committee approved a three year lease for the King Court Building at 110-112 Frederick Street, Port-of-Spain to accommodate offices of agriculture ministry at a rent of $2 million.

Ten days earlier it approved a three-year lease on a property at No. 135 Henry Street, Port-of-Spain, for use by the Ministry of National Security’s Immigration Division for $6.6 million over three years. 

And four days before the election the committee approved a three-year rental of property at No 112 Henry Street, Port-of-Spain, for use by the Ministry of National Security for $8.9 million over three years.

The report also stated that on May 17, 2010, the same committee approved a three-year rental of property at 16 to 18 Sackville Street, Port-of-Spain, for use by the Ministry of Public Administration for $7.2 million over three years, effective September 1, 2008. The Roman Catholic Church owns the property.

Another rental approved on April 19 commits the government to a three-year rental of property at the corner of Edward and Park Streets for the Ministry of Health at a cost of $16.3 million over three years, effective August 1, 2009. The property is owned by Nealco Properties Limited.

Read the full report in NEWSDAY