[UPDATED] $44m cost after helicopter contracts

NATIONAL Security Minister said taxpayers have to pay out $44 million due to a civil court settlement related to the acquisition of two helicopters by the previous People’s Partnership administration.

He was speaking on Wednesday during a meeting of the Standing Finance Committee at the Parliament building, Port of Spain. Young said about 2014 and towards the end of the last administration two helicopter contracts were entered into “under very suspicious circumstances.”

He said following investigations there may not have been proper approval and there certainly was not Cabinet approval for these two contracts.

Young said one of the helicopters never came to TT because the certificate for it to leave Delaware, US could not be provided.

“It cost the taxpayers of TT hundreds of thousands of US dollars every month. They could not even utilise the helicopters.”

He said the other helicopter which was provided to the National Operations Centre (NOC) by the former administration ran out of having a licence within a few months of arrival.

“So by November 2015 it was no longer licensed to fly in TT but the terms of the contract were the most onerous terms as an attorney that I have ever seen entered into it.” Young said the terms provided for no termination by the TT Government and if the contract was terminated the helicopter had to be taken and the full cost paid.

He reported the helicopter that burdened the NOC and late the Strategic Services Agency had no maintenance contract and the then attorney general put in writing legal advice that contract could be proceeded and a waiver of the jurisdiction.

“So even when we were sued now by this company in the courts of New York they held up the former attorney general’s letter that said ‘well hold on, you can’t waive your government jurisdiction.”

He said legal advice from international lawyers Freshfields was that the Government and by extension the people of TT “had absolutely no defence to this contract that was entered into by the former administration.”

Young said unfortunately the $44 million that could be better utilised elsewhere the country is burdened with due to this contract by the previous administration. “Another gift from them.”
He recalled the company that “leased” the helicopter brought proceedings against the minister of national security in the courts of New York and made a claim of between US $16-$18 million.
He said the legal advice from Freshfields was to settle matter and after negotiations it was eventually settled.

Moonilal also asked about a $124 million supplementation for CCTV cameras and asked whether Government still had an arrangement with TSTT or there was a new provider.
Young replied the terms and conditions on TSTT’s provision of camera service have not been agreed and there was to be a meeting to and try and work out mutually acceptable terms.
Moonilal said the matter with TSTT has been ongoing for months and asked why it was taking so long.

Young said these issues are not easily resolved in a shot period of time and expressed hope that litigation would be avoided. He added that he will be having a meeting with TSTT on the issue.

This story was originally published with the title "Young: $44m cost after PP's 'suspicious' helicopter contracts" and has been adjusted to include additional details. See original post below.

NATIONAL Security Minister said taxpayers have to pay out $44 million due to a civil court settlement related to the acquisition of two helicopters by the previous administration.

He was speaking Wednesday during a meeting of the Standing Finance Committee at the Parliament building, Port of Spain.

Young said around 2014 and towards the end of the last administration two helicopter contracts were entered into "under very suspicious circumstances." He said following investigations there may not have been proper approval and there certainly was not Cabinet approval for these two contracts.

Young said one of the helicopters never came to TT because the certificate for it to leave Delaware, US could not be provided.

"It cost the taxpayers of TT hundreds of thousands of US dollars every month. They could not even utilise the helicopters."

He said the other helicopter which was provided to the National Operations Centre (NOC) by the former administration ran out of having a licence within a few months of arrival.

"So by November 2015 it was no longer licensed to fly in TT but the terms of the contract were the most onerous terms as an attorney that I have ever seen entered into it."

Young said the terms provided for no termination by the TT Government and if the contract was terminated the helicopter had to be taken and the full cost paid.