Judge refuses HDC application

A High Court judge has refused an application by the Housing Development Corporation (HDC) to pay a $1.8 million debt owed to a contractor in instalments. To support its application, the HDC said it was experiencing cash-flow problems.

Admitting this was Housing Minister Randall Mitchell, who also maintained the corporation was working with contractors to settle all its debts. The contractor of Corinth Settlement, Ste Madeleine sued the HDC in July for $1.8 million owed for refurbishing HDC houses in Union Hall, Embacadere, Couva and Orchard Gardens.

The HDC, in documents filed in court, admitted to owing the contractor, but sought the court’s permission to pay the $1.8 million in 18 monthly instalments of $100,000. Justice Avason Quinlan-Williams refused the HDC’s application.

High Court rules allow for individual debtors to apply to the court for permission to pay debts in instalments if they are not in an immediate financial position to pay the entire amount, but would be able to pay it off if given time.

In an oral ruling, Quinlan-Williams agreed that the HDC could not be allowed to pay by instalments and it was ordered to pay the contractor the full sum, with interest, together with his legal costs. The HDC was represented by Shankar Bidaisee and Rachael Jaggernauth.

In an interview yesterday, the Housing Minister said while he was not properly briefed on the case, from what he was told, the contractor and the HDC had entered into a consent agreement to pay the debt in instalments, which was “normal and usual.”

He said it appeared that the HDC may have breached the consent order by paying an instalment late, and as a result, the contractor approached the court asking for the full balance.

Mitchell said it was no secret the HDC racked up considerable debt under the People’s Partnership, especially in the lead-up to the general election.

“It is also no secret the State and by extension the HDC, has had to deal with a significant reduction in revenues and funding,” he said. Mitchell maintained, however, that his ministry and the HDC were working to pay all outstanding debts.