- NEWSDAY.CO.TT - A la Une - 11/Aug 19:32

Cepep case file sent to DPP

THE High Court’s proceedings and documents relating to the PNM’s second Cepep lawsuit have been sent to the Office of the Director of Public Prosecutions (DPP). Supreme Court Registrar Raymond Roberts confirmed to Newsday that the file was sent on August 8 and the DPP’s secretariat acknowledged receipt. On August 7, Justice Margaret Mohammed stayed the lawsuit and referred the extension of more than 300 Cepep contracts, allegedly approved by the company's former board without proper authorisation, to the DPP. In staying the lawsuit filed by a Laventille-based contractor challenging the termination of its contract with the Cepep Company, the judge referred to a dispute resolution clause in the contract agreement, clause 17, which she said must be followed before court action is taken. She added that serious concerns surrounding the contract extensions warranted referral to the DPP. “The serious matters concerning the extension of the agreement to September 2029 necessitate the granting of a stay of the claim and all proceedings and a referral of all the documents filed in this action to the Director of Public Prosecution for his consideration.” 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.” The lawsuit by Eastman Enterprises Ltd alleged wrongful contract termination and unpaid wages for thousands of workers. Cepep contends that the former board acted outside its authority in extending the contracts. In her ruling on the preliminary issue raised by Cepep on the proper forum to hear the contract dispute, Mohammed noted the conflicting accounts between former Cepep chairman Joel Edwards and current CEO Keith Eddy before referring the matter to the DPP. Edwards, in an affidavit in support of Eastman’s lawsuit, said that during his tenure, cabinet approval was never sought for renewing or terminating contracts. He claimed a board note suggesting cabinet approval for a mass contract extension was a mistake, which he had ordered to be corrected, though he was unable to locate the revised version. He has since denied all wrongdoing, insisting that during his tenure as chairman, he held several discussions with the CEO, the minister and others regarding a 2017 cabinet decision and the authority it gave the board. Edwards categorically rejected claims that he fabricated a fraudulent misrepresentation to deceive Cepep into extending the contracts, insisting he was not guilty of fraud, misrepresentation or any breach of duty. Eddy, in an affidavit in the Eastman’s case, said he was told by Edwards that the Cabinet had approved the extensions and was assured a confirmation memorandum would follow. [caption id="attachment_1171614" align="alignnone" width="1024"] Cepep Company Ltd in Ste Madeleine. - File photo by Innis Francis[/caption] Relying on Edwards’ claims and the alleged involvement of then-line minister Faris Al-Rawi, Eddy said he instructed that the Board Note be prepared stating cabinet approval had been granted. At no point, he said, was he informed of any error in the document. Cepep’s corporate secretary, Shalini Gopaulsingh, supported Eddy’s account, stating she was told Cabinet had approved the extensions and was never advised of any correction to the Board Note. The note was approved by the board with Edwards’ signature and without objection. Acting permanent secretary Savitri Ram-Atwaroo said that no official cabinet record approving the contract extensions could be found, despite efforts to confirm it with relevant ministries. Mohammed observed that while the contractor who brought the case was not implicated in any fraudulent activity, it had benefited from the disputed extension and should have been aware of the irregularities. Given the serious nature of the allegations and the absence of a sworn affidavit from Al-Rawi, as the former minister, Mohammed ruled it was in the interest of justice to stay the proceedings. “In my view, based on the serious allegation made against him (Al-Rawi), it is only fair that he is given an opportunity to respond. “In those circumstances, it is prudent at this stage to grant a stay of the claim and all proceedings and to refer the documents filed in this action to the Director of Public Prosecution for his consideration.”’ In a statement on August 7, Al-Rawi pointed to what he described as “critical material” not before the court, including a 2017 cabinet note authorising Cepep to terminate, suspend and hire contractors, and a 2025 cabinet decision approving midyear budget supplementation. Both, he said, had been publicly acknowledged by former finance minister Colm Imbert. “It is starkly relevant to note that these cabinet decisions and other critical material have not been disclosed in the Eastman proceedings and were therefore not before the Honourable Madame Justice Mohammed in her deliberations leading to the ruling today. “Any proper investigation into this matter and any questions arising is welcomed. Cepep has a continuing duty of full candour and disclosure.” Eastman’s lawsuit followed a similar claim filed by another Laventille-based contractor, but was quickly withdrawn after it was revealed the company was removed from the Companies Registry. Both claims sought to overturn Cepep’s decision to terminate the 336 contracts. Public Utilities Minister Barry Padarath has said 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. Defending the move to dismiss contractors, Padarath, who is the line minister, said the programme had been used as a political prostitute by the PNM.   The post Cepep case file sent to DPP appeared first on Trinidad and Tobago Newsday.