Submitted by Phil Collins
The controversy over the Pierhead Marina and the award of the contract to non-bidder, SMI Infrastructure Solutions (SMI) is well known. For the sake of completeness it should be noted that the Barbados Tourism Investment Inc entered into a Memorandum of Understanding (MOU) with SMI since February 2011 when the Minister of Finance, with much fan fare announced shortly thereafter that construction work on the Marina would commence within 12 months.
Under section 5.0 of the MOU it was agreed that: “SMI will arrange financing through a third party for the work to be done under this MOU”. In other words SMI would be responsible for funding the new Marina design which was being undertaken by its prime marine engineering consultant, W F Baird and Associates.
On Monday 31st October 2011Citicorp Merchant Bank Limited advised the Government of Barbados that it was unable to raise the Bds$40.0 million on behalf of SMI. On the 1st November 2011 the CEO and Chairman of BTI were invited to meet with the Permanent Secretary of Investment in the Ministry of Finance and the Minister of Finance, Mr. Chris Sinckler to discuss the situation.
At that meeting the Minister of Finance instructed that the BTI should seek permission from the Government for BTI to borrow Bds$5.0 million dollars from Urban Rehabilitation Programme (URP) despite the fact that SMI was in breach of the MOU in not being able to arrange the funding for the new design work for the Pierhead Marina. This is shocking given that at the date of this directive by the Minister of Finance, SMI had not asked to be loaned any money and everyone knew SMI was in breach of the MOU.
On the 3rd November 2011, not believing it’s luck, SMI made a formal request that the BTI loan it Bds$5.0 million dollars to assist SMI in the immediate funding needs of the Pierhead Marina. This is a new one even for politics in Barbados, money being approved to be loaned to an entity that has not even applied to borrow. It would be laughable if the situation was not so serious.
On the 7th November 2011 the Minister of Finance without the approval of the board of directors of BTI or the Cabinet of Barbados authorized the disbursement of Bds$5.0 million dollars from the URP to SMI on the basis that BTI would identify a source of funding to replace the URP funds used to pay SMI for design work being completed by W F Baird and Associates.
By the 25th day of January, 2012 it had become apparent that SMI had not paid for wave modeling and testing carried out in Ottawa on the new design of the Pierhead Marina and notwithstanding the Bds$5.0 million paid to SMI, the BTI also had to foot this expense.
Around this same time, the board of directors of BTI became aware that despite being loaned Bds$5.0 million dollars, SMI still had not paid money to W F Baird and Associates for the work that company had preformed.
Questions:
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Why would the Minister of Finance instruct a loan of money to be made from URP funds to SMI when SMI had not even made a formal request for any money?
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When, if ever, was the Cabinet of Barbados asked to approve the use of URP funds as a loan to SMI?
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What is the Bds$5 Million for or how was that sum arrived at? Also, why was the Board of Directors of the BTI being asked to approve the loan of Bds$5 Million to SMI in December 2011 when the Minister of Finance had already approved both the loan and the disbursement of the loan from the URP funds and SMI was already in possession of the money.
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When the Minister of Finance authorized the disbursement of Bds$5.0 million dollars to SMI had the Cabinet of Barbados agreed that URP funds should be taken up and loaned to SMI, a thinly capitalized company registered in St. Lucia?
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Has the BTI or SMI been able to raise the funding for the Pierhead Marina project since SMI has been loaned the money from URP funds?
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If the answer to question 4 above is no, then when will the BTI terminate the MOU with SMI or are we to assume that the MOU is just the straw which allows SMI to drain the BTI trough?
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Where is the Bds$5.0 million dollars loaned to SMI now, especially given that W F Baird and Associates have not been paid? Also, how was the money paid to SMI, check or wire transfer?
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How many hundreds of thousands of dollars have been paid by BTI to have the wave modeling and testing done in Ottawa? What else has the BTI paid for that should have, under the terms of the MOU, been paid for by SMI?
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When will the Pierhead Marina project commence 2012, 2013 or never?
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What is the role of Mia Mottley in the SMI Pierhead Marina project and who is she working for, if anyone?
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Whatever did become of that Letter of Comfort issued to SMI by Minister of Finance for the Pierhead Marina project? Which financial institution, if any, is on the letter of comfort?
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Who at the Ministry of Finance signed the letter of comfort, was it the Permanent Secretary or was it the Minister of Finance himself?
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Why award a half billion dollar contract for a marina project to a company which had not bid, did not have the experience or financial capability and whose principal is a less than reputable character and then turn around give that company Bds$5.0 million dollars for breaching the MOU?
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We know Senator Darcy Boyce going on a stand for sure when Owen Arthur regains the Government however the bigger question is will Chris Sinckler be there as well?
See related Link: BTII BOARD PAPER # 11-042 and Apendicies
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