Sunday, October 23, 2011

UDeCOTT threatens legal action against its former boss, Calder Hart

A Sunday Guardian report has stated that the Urban Development Corporation of Trinidad and Tobago (Udecott) is seeking millions in financial compensation from its former executive director Calder Hart for decisions taken during his tenure as head of the organisation.

Canadian forensic investigator Bob Lindquist probed UDeCOTT for one year and his findings were used as the basis of pre-action protocol letter that UDeCOTT attorney Christlyn Moore issued to Hart Monday. 

Prime Minister Kamla Persad-Bissessar announced the action during her contribution to the 2012 budget debate last Monday. 

The pre-action protocol focused on two Hart’s role in the award of the Brian Lara Cricket Academy (BLCA) package to Hafeez Karamath Ltd (HKL) in 2006 and his breach of “good faith by deliberately and improperly concealing from your fellow directors and the Udecott shareholders” his family connections in Sunway Construction Ltd. 

UDeCOTT asserts Hart's dual role as executive chairman and chairman of the tenders committee gave him privileged access to information, in particular, the unhealthy financial situation of HKL as outlined in a 2002 report, which outlined HKL’s unsatisfactory financial position resulting in a failed bid for the $97 million project. 

“Your knowledge of HKL’s financial position with respect to its bid on the Customs and Excise Building would have made you aware of its inability to manage projects in excess of $100 million,” the letter said. 

“With respect to HKL’s bid, the report concluded that the financial statements of the company did not qualify it for a project of this magnitude. Secondly, the report identified that the fact that HKL which was only incorporated in 2000 would automatically disqualify the company as it would have not met the tender requirement of having to provide five years of financial statements,” the letter continued.

The letter also noted that UDeCOTT’s external counsel Debroah Peake advised Hart about HKL's situation.  

UDeCOTT's letter said Hart said, "Your knowledge of the financial position of HKL and the HKL group of companies was augmented by HKL’s bid on the Ministry of Legal Affairs Tower. 

"From the bid documents submitted by HKL you would have been aware that the shareholders equity of HKL was merely $4.7 million. Further, the documents showed that Hafeez Karamath Group reported a shareholder deficit as at June 30, 2003, of $80.4 million. 

"A response to a request from the Tenders Committee for HKL to provide “letters from financial institutions advising of HKL’s total line of credit, current commitments and available line of credit was met with no response by HKL,” the letter stated.

With respect to SUNWAY, UDeCOTT is seeking payment as well as declaratory relief from the court for Hart’s role which led to the construction of the Ministry of Legal Affairs Tower in the sum of $369 million to Sunway Construction Ltd in April 2005. 

It's legal letter stated: “In October 25, 2004 Suncon delivered “by hand” to you a three-inch binder of pre-qualification documents in the name of Suncon, specifically prepared in a professional manner for UDeCOTT." 

The letter stated that Hart “handed” the Suncon binder to Mr Agard, UDeCOTT’s chief executive at the time, and that i"t was later discovered that there were a number of important connections between Suncon's subsidiary company, CHDC, and your family.

UDeCOTT stated that Hart breached his duty to act in good faith as well his fiduciary duty towards the company. In additon it charged that he failed to disclose these matters to the board of directors or the tenders committee.  

“Indeed, Mr Agard, the then CEO, stated that he had no knowledge of any of these relationships. 

"You sought to compound your dishonesty and improper actions in your evidence to the UFF Commission of Inquiry when you stated in your written statement of January 14, 2009: 'I take this opportunity to categorically refute and condemn as false and mischievous any allegations that I have any family connections with Sunway or CHDC'."

Read the full story in the SUNDAY GUARDIAN

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Jai & Sero

Jai & Sero

Our family at home in Toronto 2008

Our family at home in Toronto 2008
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