Company owned by Frankie Khan's wife got $64M contract but did not pre-qualify: Panday

Subhas Panday told the Senate Tuesday a company owned by the wife of former cabinet minister Franklin Khan got $64 million contract from the Estate Management Development Company (EMBD) for $64 million without being pre-qualified.

The minister in the national security ministry was speaking in the debate on the Finance Bill.

Khan, who was a minister in the Manning PNM government and also the chairman of the People's national Movement, had to resign both posts after he was charged with corruption. The charges were later dropped.

Khan insists that he is a man of integrity and all his actions have been above board. He sprung into the media spotlight last week when he confirmed that he will run for his old post as chairman of the PNM at the party's convention next year.

Panday spoke about a company called Vidara Enterprises, which he said has "close connections to the heart, bowels and soul of the PNM". 

Khan's wife, Laura Sewlal-Khan, is one of the company's directors. Khan's two children are directors of the company as well. One of them is an attorney and another holds a master's degree in Project Management. Panday said Khan was a recommender and a project manager.

The minister said Nigel Gittens, civil structural engineer, wrote to the EMBD on March 4 informing them that "over 100 companies had been assessed, 64 companies had passed the test and Vidara Ltd was the only company which did not pre-qualify".

He informed legislators that the EMBD "headed by Noel Garcia" issued the contract to Vidara Ltd. to develop lands in Felicity 2, Chaguanas.on the date that the general election was announced.

In an immediate response, Sewlal-Khan told the media she won the $64.4 million contract "fair and square", noting that she submitted the lowest of six bids.

Franklin Khan gave details of the bids, which were made public:

• Mohammed and Sons –$128.2 million
• S &D Limited - $66.1 million
• Sign Contractors - $81.2 million
• Dhanny Enterprises–$86.4 million
• Universal Haulers–$64.6 million
• Vidara–$64.4 million

He said his wife built Vidara from scratch after he resigned his positions. "She has worked with the HDC, the EMBD, the Ministry of Works, the Education Facilities Limited and NIPDEC," he said

Sewlal-Khan said she had to work after Khan resigned noting that she came from a landowning family and construction was never difficult for her. Sewlal-Khan said her company survived through "hard work and honesty".

She said the contract has now been suspended as a result of which Vidara is now "out of pocket" since the company did not take any advance payment on the contract. Work on the project was due to begin from May 12.

Sewlal-Khan accused the government of trying to destroy her family.