http://www.trinidadexpress.com/news/PM_STAYS_OUT-104548694.htmlPM STAYS OUT
Sandy, AG to head negotiations with Brits on cancelled OPVs
By Akile Simon
Story Created: Oct 8, 2010 at 12:54 AM ECT
Story Updated: Oct 8, 2010 at 12:54 AM ECT
NATIONAL SECURITY Minister Brigadier John Sandy and Attorney General Anand Ramlogan will lead a team of technocrats into negotiations with the British government and BAE Systems on the cancellation of the purchase of three offshore patrol vessels (OPVs).
Prime Minister Kamla Persad-Bissessar made the disclosure at yesterday's post-Cabinet media conference at the Diplomatic Centre, St Ann's. She said it was not appropriate for her as head of the Government to be engaged in such a multi-billion-dollar discussion.
She also confirmed a report carried in yesterday's Express,which stated this Government had been in talks with the British government regarding the cancellation of the contract for the vessels.
The contract was signed off as part of a government-to-government arrangement under the former People's National Movement (PNM) government, which signed a Ł150 million contract in April 2007 with VT Shipbuilding to build and commission the vessels. In October last year, BAE acquired full control of VT.
The vessels are part of a $5.1 billion-dollar expenditure approved by the former People's National Movement government to acquire naval assets, which would provide surveillance and protection capabilities, including drug interdiction, anti-smuggling operations and disaster relief functions within the region.
Persad-Bissessar said she has spoken with Eric Jenkinson, the British High Commissioner to this country, on the matter.
"I am not of the view that it is appropriate for me as the Prime Minister of the country to engage in negotiations while I am there (in London, England)) on Commonwealth business.
I do not think it's appropriate for the Prime Minister to be holding closed-door meetings with persons on a matter that is worth billions of dollars of taxpayers' dollars. 
"I am not of that view and in that regard, I will not hold discussions of that nature. I think they (Sandy and Ramlogan) would be the better persons, but I so did indicate to the British High Commissioner Mr (Eric) Jenkinson," she said when asked if she would be meeting with British government officials during her trip to London next week.
A few months ago, both Sandy and Ramlogan were part of an interministerial committee which was set up to review the purchase of the OPVs.
Persad-Bissessar did not say whether the Government would purchase one of the vessels.
"Any discussions as I said would be without prejudice, so that we do not jeopardise that notification and then have to start from scratch all over again.
"We have taken a decision already, but we are willing to listen. If there is something that comes forward that's in the best interest of the people of Trinidad and Tobago, we will be willing to consider it...we are holding our position," she said.
She said after the one-month notification the Government gave to BAE to cancel the purchase expires, negotiations would then begin with the company.
The negotiations are expected to commence from October 18, one day after the one-month notice to cancel the purchase expires, the Express was told.
We also understand officials from BAE are expected to travel to this country to begin talks for an equitable settlement, and with the expectation this country would take the first vessel which is ready for delivery.
When asked whether the $61 million BAE owed this country after it repeatedly breached the contract by constant delays in the delivery of the vessels and the wrong specifications being used in one of the boats, she said the country would have to await the outcome of the arbitration process.
"I do believe the way out of the contract is not necessarily through the courthouse, but it's through arbitration. If it is not settled by negotiation, then we would have to empanel persons to arbitrate. It's a process that would take some time," she said.
