$27M contract at CAL above board: Nicholas

George Nicholas issued a statement through his lawyer, Lionel Luckhoo, Sunday stating that everything was "above board" with respect to a $27 million contract to CIC Insurance Brokers, a company in which his family has an interest.

The chairman of Caribbean Airlines (CAL) George Nicholas said the award of the contract was transparent and in keeping with good practice.

In the statement Nicholas noted that he declared his interests in the company early in the process and was not present when the tenders committee made the decision to award the contract.

Prime Minister Kamla Persad-Bissessar has asked the line minister, Transport Jack Warner to launch an investigation into the allegations and to liaise with Attorney General Anand Ramlogan on the matter.

"There are somethings that I am not aware of and some I only read about in the newspapers. In all cases investigations will be made, but in the meantime the CAL board continues to function," she told reporters in Spiraia where she was attending the La Divina Pastora festivities.

The Sunday Guardian reported the story about the CAL contract in which it did indicate that Nicholas excused himself from the decision-making on the contract.

In the statement, Nicholas said the newspaper story gave the impression that he "behaved in an underhand way".

He said, "I am proud of the approach that I have taken to issues of integrity and transparency and would like to emphasise that I did declare the interest and I took no part in the debate. 

"Indeed I am reminded by staff that were present at the time of the meeting that the decision was chaired by Director Clovis, who would be the first to have raised concerns had there been any perception of concern," he added.

Nicholas also explained that the airline had a relationship with CIC Holdings before he was appointed to chair CAL the board in November 2010.

"The reality is that CIC Holdings had been the brokers for CAL for the period prior to the brokers who were appointed under the old administration and further as I understand the position, once the decision to appoint CIC was made it was twice reviewed in order to ensure the maintenance of integrity," he said.

The chairman also offered an explanation for a US$99,000 advertising contract. He said the relevant minister gave him the authorisation for that. "Once the invoice was issued I initialled it having the support of two Ministers."