VOODOO MATHS
Jack: Imbert owes country explanation on why millions were wasted on water taxis
By Anna Ramdass (Express).
Jun 12, 2012
Government Minister Jack Warner has accused former works and transport minister Colm Imbert of using "voodoo maths" in a bid to cast blame away from the People's National Movement (PNM) in the purchase of four water taxis.
The purchase and subsequent sale of the vessels have resulted in some $127 million being lost as the vessels were sold for $6 million, according to figures in documents from the National Infrastructure Development Company (Nidco).
On Monday, the Express exclusively reported the sale of the four water taxis—the MV Su, the HC Olivia, the HC Katia and the HC Milancia— and quoted official documents from Nidco, which stated that capital expenditure (cost and upkeep) on the vessels was $133 million.
Imbert, on Tuesday, issued a release stating the figures were inflated by 100 per cent and questioned who was benefitting from the sale of the vessels.
During a site visit in Maraval yesterday, Warner said Imbert was seeking to deflect from the facts.
In a statement, Warner stated the figures carried in the Express were accurate.
"The facts are, as extrapolated in Monday's Express from Nidco documents, that the capital expenditure, which totalled $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" (HC Olivia, HC Milancia and HC Katia) 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," said Warner.
He added the MV Su 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 a month.
"The total capitalised 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," stated Warner.
"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," added Warner.
Warner said further that the PNM was advised against buying the vessels.
"...But if you look at the records from 2007, you would see four or five Cabinet notes; it was on, it was off; they were buying four, they were buying two; at the end of the day, they end up buying four second-hand boats," said Warner.
"I look at some Cabinet notes and in one of the notes, they said do not buy it any more; I have in my desk a Cabinet note in which they said don't buy it any more," Warner added.
Asked to elaborate on which former minister advised against the purchase of the boats, Warner responded, "This is the PNM Cabinet in 2007; I have it on my desk; Cabinet notes are confidential, but I swear, on my mother's grave, I have it on my desk; they say not to buy it, wanted to go, of course, to lease per day and all kinds of things, just rushing to satisfy political expediency that they believe would be in their benefit," said Warner.
He said former works and transport minister Colm Imbert owed the country an explanation on why millions were wasted behind second-hand vessels that were not seaworthy.
Imbert, in an e-mailed response to the Express last night, said Warner's figures did not add up.
"From the tone and tenor of his remarks, Mr Warner appears to be still upset that the Transport portfolio was removed from under his purview. I have stated the facts as I know them to be, whereas the figures that he has quoted do not add up," he said.
"As confirmed by Mr Warner in Parliament on July 2, 2010, the three hydrocruisers purchased out of England in 2008 cost a total of $35 million.
"The records available to me indicate that minor repairs and upgrade work, costing a total of $6 million, on the three boats were done by Nidco, as planned and budgeted, to these three boats prior to their introduction into the service. In fact, I am advised that this information was published in 2009. Mr Warner's new figure of $78 million for the cost of these three boats thus makes no sense," he added.
Imbert said the very low sale price of the vessels is a serious matter for concern, especially since these three boats, which provided an excellent service up to October 22, 2010, were allowed to deteriorate for almost two years and have now been sold for a pittance.
"The current Minister of Transport, before he takes his leave, must explain what has happened with this sale," said Imbert.
