The Office of the Procurement Regulator has halted the award of $3.4 billion in Housing Development Corporation (HDC) contracts to 11 companies, just hours after a Government minister defended the process.
The regulator’s chairman, Beverly Khan, issued a statement yesterday revealing that the decision was actually taken on Tuesday—a day after the matter was first raised by former housing minister Camille Robinson-Regis—pending a comprehensive review of the procurement proceedings.
Khan said the inquiry is aimed at ensuring full compliance with the Public Procurement and Disposal of Public Property Act, and declined further comment.
Hours before the statement was issued by the OPR, Minister in the Ministry of Housing Phillip Edward Alexander had rejected the Opposition’s allegations of corruption, insisting the projects will not cost taxpayers.
In a video recording shared to members of the media, he said: “The State is not putting out one red cent. The $3.4 billion is the value of the contracts but it is the developers and the contractors that are building these contracts, and it is the mortgage finance company and the banks like Republic and Royal that are paying the mortgages for the buyers who buy these houses. It’s not costing the State a dollar. So all of this nonsense that the PNM put out in the public space is red herring nonsense.”
He was responding to former prime minister Stuart Young, who on Wednesday accused the Government of operating a “cartel-style” bid-rigging scheme through selective tendering within the HDC. He also called for a criminal investigation into the procurement process involving 11 companies, some of which he claims were recently incorporated.
However, Alexander said there was no basis for such action, noting that the process was still within the standstill period, seemingly unaware of the procurement regulator’s decision at the time.
“There’s no evidence here that any wrongdoing took place of any kind, so there’s nothing for him to take to the police to say to do a criminal investigation. If Stuart Young was a real lawyer, he would know that, but obviously he’s got his law degree in a crackerjack box.
“The reality of the situation is this part of the procurement process, the stand-down period, is where people get to investigate and check into all of the quotations and all of the submissions to see if the contracts are being duly and properly awarded. So that’s nonsense.”
The standstill period is a phase during which unsuccessful bidders are notified, but no binding contract is finalised. In this case, it was set to run for 10 working days, beginning on April 9 and ending on April 22.
In her statement criticising the project on Monday, Robinson-Regis said the standstill period was “well below the accepted practice of 15-20 working days…”
However, Alexander said the timeframe was consistent with procurement norms and accused the opposition of inconsistency.
“With regards to Camille Robinson Regis talking about the 10-day period in this stand-down being too short, the stand-down period is generally between 10 and 15 days. She, as Minister of Housing, awarded contracts using the 10-day period for $476 million, I think that was in Santa Rosa. So Camille Robinson-Regis, more nonsense. The PNM is just trying to beat its base into a frenzy and fooling them with nonsense,” he said.
Reacting hours later after the Procurement Regulator’s announcement, however, Alexander said the Government was not concerned about the outcome, reiterating remarks he made outside Parliament on Tuesday that the process was transparent and above board.
“From what I gather, this is process and procedure, all of it being done in the bright light of transparency in the public space and not hidden away and covered up as it was under the PNM. It is my expectation, knowing the Government that I am a part of, that everything will be revealed to be above board.”
He added that he expects the HDC to issue a formal response in due course.
However, Robinson-Regis, also reacting to the regulator’s announcement, described the halt of what she called “questionable procurement activities” as an indictment on the Government.
“The fact that the regulator had to step in and direct the halt of billions in contracts is a clear sign of recklessness on the part of the HDC. The people of Trinidad and Tobago want transparency, not rushed deals and secretive decisions. When the Procurement Regulator has to intervene to stop $3.4 billion in contracts, it shows the seriousness of the issue. The UNC government is mishandling public funds, having promised good governance, but now having billions in housing contracts under review. You can’t promote transparency and then operate in secrecy.”
At an opposition media conference earlier this week, Young likened the situation at the HDC to ongoing “cartel claims” involving the Estate Management and Business Development Company Ltd (EMBD), which date back to 2017, and past controversies surrounding the Education Facilities Company Ltd (EFCL). He also indicated that the opposition was preparing to challenge the legality of the process through the Office of the Procurement Regulator.
A complaint was subsequently filed by attorney and former People’s National Movement minister Randall Mitchell yesterday, on behalf of activist Wendell Eversley, with instructions given to Young in his capacity as an attorney.
It said Eversley was concerned with the legality, propriety and integrity of the exercise.
The complaint noted that concerns centred on a combination of features of the procurement process, including the structure and timing of the procurement itself, the conditions imposed on participation, and a series of concurrent reports which consistently raise concerns regarding transparency, fairness and the integrity of the exercise.
“Taken together, these matters give rise to a reasonable basis to suspect that irregularities may have occurred,” the complaint said.
Housing Minister David Lee did not respond to repeated requests for comment via phone and WhatsApp by the time of publication.
