Read the story: Imbert has questions about sale of 4 water taxis
Warner said he has responded because he was the one who made the transition from the old water taxi fleet to the new fleet, while his portfolio included transport.
He said comments by Imbert on the significant financial loss incurred in the recent disposal of four water-taxi vessels amount to nothing more than "a pathetic attempt to shift the blame of that horrible investment away from the former PNM administration, and to do so by employing mischief and a deliberate distortion of the facts by Mr Imbert."
Warner said it was simply a bad PNM investment to buy the four second hand vessels for interim use as water taxis.
"It is well documented that the introduction of water taxis was raised by the former UNC administration of 1995-2001. The PNM made several attempts thereafter to initiate the water taxi service but failed repeatedly under former Minister Franklin Khan," Warner stated.
He added, "With General Elections due in 2007, the PNM...promised to deliver the water taxi service by early 2007 – as early as January 2007. The population will recall there were several postponements of the water taxi launch and the service did not come on stream until after the 2007 elections; some time in 2008."
Warner said in its haste to impress the population for the 2007 General Election, the Manning PNM regime made a "rushed and reckless decision" to buy the second hand vessels.
"That irresponsible, rushed political decision by the PNM is what led to the $127 million in losses associated with these boats," he said.
He added that it is no different to the US$15 million National Security blimp that had to be "packed down due to maintenance issues and cost and eventually sold off for the meagre salvage value of US$50,000" just to escape the recurring maintenance costs.
"It is no different to the failure of the PNM to complete and commission the Brian Lara stadium which has cost tax payers over $1billion so far.
"It is no different to the wastage of $132 million per year from 2003 to 2010 (seven years) in the hiring of retired British personnel to man the Special Anti-Crime Unit of Trinidad and Tobago – a total of $1.056 billion in 8 years.
"It is no different to the wastage of $474 million for a study on whether there is need for a Rapid Rail. I always say that I have the most expensive footstool in the world. $474 million in useless paper in two boxes under my desk – the result of this feasibility study," the minister said.
Warner also challenged Imbert's figures, stating the former Manning cabinet member was being dishonest.
Warner said it was simply a bad PNM investment to buy the four second hand vessels for interim use as water taxis.
"It is well documented that the introduction of water taxis was raised by the former UNC administration of 1995-2001. The PNM made several attempts thereafter to initiate the water taxi service but failed repeatedly under former Minister Franklin Khan," Warner stated.
He added, "With General Elections due in 2007, the PNM...promised to deliver the water taxi service by early 2007 – as early as January 2007. The population will recall there were several postponements of the water taxi launch and the service did not come on stream until after the 2007 elections; some time in 2008."
Warner said in its haste to impress the population for the 2007 General Election, the Manning PNM regime made a "rushed and reckless decision" to buy the second hand vessels.
"That irresponsible, rushed political decision by the PNM is what led to the $127 million in losses associated with these boats," he said.
He added that it is no different to the US$15 million National Security blimp that had to be "packed down due to maintenance issues and cost and eventually sold off for the meagre salvage value of US$50,000" just to escape the recurring maintenance costs.
"It is no different to the failure of the PNM to complete and commission the Brian Lara stadium which has cost tax payers over $1billion so far.
"It is no different to the wastage of $132 million per year from 2003 to 2010 (seven years) in the hiring of retired British personnel to man the Special Anti-Crime Unit of Trinidad and Tobago – a total of $1.056 billion in 8 years.
"It is no different to the wastage of $474 million for a study on whether there is need for a Rapid Rail. I always say that I have the most expensive footstool in the world. $474 million in useless paper in two boxes under my desk – the result of this feasibility study," the minister said.
Warner also challenged Imbert's figures, stating the former Manning cabinet member was being dishonest.
"It is reprehensible that the former Minister of Works and Transport is deliberately seeking to create public mischief and to mislead the population by conveniently omitting figures in the calculation of the actual capital costs of the MV Su, MV Katia, HC Milancia and HC Olivia.
"In today’s Express (June 12), Mr Imbert claims to be at loss as to how the capital cost of the four vessels totaled $133.3 million, as published in Monday’s Express (June 11).
"In today’s Express (June 12), Mr Imbert claims to be at loss as to how the capital cost of the four vessels totaled $133.3 million, as published in Monday’s Express (June 11).
"He claims the stated cost is “inflated by almost 100 per cent” drawing reference to the acquisition cost. In fact, the former Minister went an extra step on another medium to subtract the acquisition cost of the MV Su and thereby emphasize his claim that “someone has coked the books”.
Warner suggested that Imbert should stick to the facts.
He said, "The facts are...that the Capital Expenditure which totaled $133.3 million represents the cost of acquisition of the vessels and the “cost incurred to bring the vessels into use”. The cost of acquiring the Three Sisters is $43.3 million and $35 million was spent in bringing the three vessels into use. The total Capital Expenditure on the Three Sisters therefore is $78.3 million.
"The MV Su, which Mr Imbert would like us to forget, was acquired at a cost of $32.6 million and over $22.4 million was spent in trying to bring the vessel into use including berthing fees of $76,000 per month.
Warner suggested that Imbert should stick to the facts.
He said, "The facts are...that the Capital Expenditure which totaled $133.3 million represents the cost of acquisition of the vessels and the “cost incurred to bring the vessels into use”. The cost of acquiring the Three Sisters is $43.3 million and $35 million was spent in bringing the three vessels into use. The total Capital Expenditure on the Three Sisters therefore is $78.3 million.
"The MV Su, which Mr Imbert would like us to forget, was acquired at a cost of $32.6 million and over $22.4 million was spent in trying to bring the vessel into use including berthing fees of $76,000 per month.
"The total Capitalized Cost of the Su was $55 million. It is a well-documented fact that due to a fault in the vessel’s hull, the Su was unsafe for use and could not be put in service. Therefore every cent spent on the Su went down the drain and without a single passenger ever travelling on the Su.
"The total Capital Expenditure on the FOUR vessels is $133.3 million and after deducting $6.04 million in proceeds from the sale of the vessels the Loss on Disposal is $127.3 million."
Warner noted that:
"That is a fact from which Mr Imbert and the PNM cannot escape, regardless of how hard they try to manipulate the facts.
"Further, Mr Imbert has been caught red handed engaging in mischief by attempting to “ratch” the figures published in Monday’s Express to suit his political agenda."
"The total Capital Expenditure on the FOUR vessels is $133.3 million and after deducting $6.04 million in proceeds from the sale of the vessels the Loss on Disposal is $127.3 million."
Warner noted that:
- These four vessels were procured under the former PNM regime when Mr Imbert was Minister of Works and Transport
- Mr Imbert was fully aware during his tenure as Minister that the true cost of the vessels was not limited to the acquisition cost, but also includes other costs involved in bringing the vessels into use
- The newspaper report explicitly states that Capital Expenditure includes the cost of acquisition in addition to the cost incurred to bring the asset into use
- Valuation of the vessels was done by Astralship Corporation Limited of Gibraltar, an internationally reputable broker, according to industry standards
"That is a fact from which Mr Imbert and the PNM cannot escape, regardless of how hard they try to manipulate the facts.
"Further, Mr Imbert has been caught red handed engaging in mischief by attempting to “ratch” the figures published in Monday’s Express to suit his political agenda."
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