- NEWSDAY.CO.TT - A la Une - 07/Aug 16:24

Judge sends CEPEP contract extension to DPP

A High Court judge has referred the extension of more than 300 CEPEP contracts, allegedly approved by the company's former board without proper authorisation, to the Director of Public Prosecutions. Justice Margaret Mohammed made the order on August 7. She also stayed a lawsuit filed by a Laventille-based contractor challenging the termination of its contract with the CEPEP Company, citing a dispute resolution clause in the agreement, Clause 17, which she said must be followed before court action is taken. “The action is stayed as Clause 17 expressly provides a clear mechanism for the claimant to engage with the defendant to resolve its disputes,” Mohammed said. She added that the contractor did not comply with the pre-action protocol and that serious concerns surrounding the contract extensions warranted referral to the DPP. The ruling comes amid claims that CEPEP’s former board improperly extended 336 contracts – worth approximately $1.4 billion – through September 2029, allegedly based on false claims of Cabinet approval. The CEPEP Company is now investigating the matter as possible “political fraud.” CEPEP CEO Keith Eddy said former board chairman Joel Edwards told him Cabinet approval had been granted and cited then-line minister Faris Al-Rawi as the source. WhatsApp messages from April 2025, purportedly from Edwards, claim contracts were extended “pursuant to Cabinet approval.” CEPEP has included the messages in its legal defence. Edwards has denied any wrongdoing and said a board note containing the error was later corrected. CEPEP disputes this, claiming no correction was made and the company acted on Edwards' instructions in good faith. The company has accused Edwards of acting against CEPEP’s best interest, exposing the company to reputational harm. It intends to pursue personal liability against Edwards for any resulting losses. Eddy said he refused to sign off on a three-year extension of hundreds of contractor agreements, citing concerns about committing the government to a billion-dollar bill. Eddy said he faced “intense pressure” to approve the extensions and add new contractors, but no written proof of Cabinet approval or additional funding was ever provided. He said the Ministry of Finance had previously flagged “unjustified and uncontrolled expenditure” and “major discrepancies” in CEPEP’s accounts, prompting him to refer the matter to the Anti-Corruption Bureau, the DPP, and the Integrity Commission. Eddy, who has led CEPEP since 2016, said he resisted “intense pressure” ahead of the general election to approve the extensions and add new contractors. He described the attempt as “unethical, if not illegal,” and called allegations that he supported the move “false and fabricated.” The lawsuit by Eastman Enterprises Ltd alleges wrongful contract termination and unpaid wages for thousands of workers. CEPEP contends that the former board acted outside its authority in extending the contracts. Anand Ramlogan, SC, leads a team of attorneys for CEPEP. Larry Lalla, SC, St Clair O’Neil and Kareem Marcelle represent Eastman. Public Utilities Minister Barry Padarath says an audit of CEPEP’s operations remains ongoing. He also said previously he was in the process of seeking legal advice with an intent to report the extension of contracts to the Anti-Corruption Bureau and the Fraud Squad for immediate investigation, to determine whether criminal charges for fraud and misconduct should be laid. The post Judge sends CEPEP contract extension to DPP appeared first on Trinidad and Tobago Newsday.