EMBD, contractors back in Appeal Court Monday after new Moonilal statement

ANOTHER emergency hearing of the Court of Appeal in the Estate Management Business Development Company Ltd’s multi-million-dollar cartel claim against a group of contractors and a former government minister will convene on Monday.

Notices for Monday’s emergency hearing went out on the weekend.

It follows a similar hearing on Friday to discuss statements made by Opposition MP Dr Roodal Moonilal at a political meeting on June 19 in response to comments by the Prime Minister at a press conference on June 12.

Dr Rowley said, “They went, they appealed the matter and they went to get the judge’s position overturned.

“The Appeal Court has ruled in favour of the state enterprise, the EMBD and as we stand here now Mr Moonilal (sic) and others have to put in a defence in the court to disclaim for the loss of hundreds of millions of dollars in a state company.”

He added, “And I ask you the media to advise the public as the matter progresses through court. Two steps have gone already in the court but there is silence in the country.

“The first step is the Justice (James) Aboud ruling that nobody seems to know and want to know. The second step is the appeal court saying put in your defence, you have a defence to put it in, put it in.”

Moonilal responded to Rowley’s statements at the UNC’s Monday Night Forum on Labour Day at the Aranguez North Secondary School. He wondered if the Prime Minister had known the contents of an appeal court ruling before it had been delivered.

Monday's hearing also comes after Moonilal made further statements about Friday’s hearing. That hearing was called to discuss a letter from the contractors expressing their “shock and concern” about Rowley's statements on their appeal.

The letter said, “Our clients are extremely concerned that it is reported publicly by the political arm of the State that a judgment has been given by the judicial arm of the State against them before they are made aware of the reasoning and the decision of the Court of Appeal."

Admitting that they were willing to do nothing after receiving the letter, Justices of Appeal Nolan Bereaux, Mark Mohammed and Maria Wilson said they received a video recording of Moonilal’s statements which they played in court. They did not say from whom they received the video but that it was sent by WhatsApp and has been posted on YouTube.

Lead attorney for the contractors, Ramesh Lawerence Maharaj, SC, said his clients were concerned that a judgment might have been delivered in the matter based on the Prime Minister’s assertions.

He said the letter was sent to the court for it to set the record straight. He also said his clients had full confidence in the judges and his duty was to tell the court what the political arm said.

“Lawyers have a fundamental right to communicate to the court in order for public confidence in the court to be unshaken.”

He maintained his clients’ letter was sent to the court “in good faith…in the interest of the administration of justice.”

King’s Counsel David Phillips, who leads the case for the EMBD, said he accepted Maharaj’s explanation of the intent behind the letter and his discharging his duty to the court.

He also said it was “plainly inappropriate for anybody to suggest that the court might be influenced by an external party.

“It is our submission, we respectfully deprecate what Dr Moonilal has said.”

Phillips also said Rowley’s statements were not inaccurate since, at the May 26 hearing of the appeal, Moonilal and several others agreed, by consent, to file their defences 45 days after the court rules depending on the outcome of the appeal and subject to any further order by the judges.

After the hearing, the judges said they would say what action they would take after they ruled on the EMBD appeal on June 30.

In a statement a few hours later, Moonilal said he was disturbed that the court played a video of him responding to Rowley without also playing the Prime Minister's statement.

Quoting the landmark case for freedom of the press; Moonilal said, “Justice is not a cloistered virtue, she must be allowed to suffer the scrutiny and respectful, even though outspoken comments of ordinary men.”

The quote is from the Privy Council ruling on a local contempt case in 1936 involving an editor of the Port of Spain Gazette who was jailed for an article criticising judges on sentencing.

In his statement, Dr Moonilal said, “In what could only be described as chilling news, today I learnt that the Court of Appeal convened a hearing to treat with certain comments made by me at a political meeting... I took umbrage and raised as a matter of serious public concern how the Prime Minister could reveal the result of a politically sensitive court matter prior to the Court of Appeal publishing their decision.

He said Rowley’s statements were inexplicable “and strikes at the heart of public confidence in the judiciary upon which our system of justice depends.”

Moonilal said the appeal involved an application to strike out the EMBD’s case. He said if that appeal succeeded, there would be no claim.

“I do not know if Dr Rowley wants me to defend a non-existent claim."

Of Friday’s court hearing, he said, “I would think they would be concerned about the Prime Minister’s statement: ‘The appeal court has ruled in favour of the state enterprise, the EMBD and as we stand here now Mr Moonilal (sic) and others have to put in a defence…’ in circumstances they have given no such ruling, judgment or order.”

He added, “I will continue to demand accountability and transparency from all institutions.”

The EMBD sued TN Ramnauth and Company Ltd, Taradauth Ramnauth, Kall Co Ltd, Mootilal Ramhit and Sons Contracting Ltd and Fides Ltd. They are represented by Maharaj, Jagdeo Singh, Jamie Maharaj instructed by Karina Singh and Shastine Motilal.

In August 2020, Justice James Aboud dismissed preliminary applications by TN Ramnauth, Taradauth Ramnauth, Kallco, Motilal Ramhit and Co and Fides Ltd – for the EMBD to detail the allegations against them so that they could fairly mount their defence or strike out the claims.

Aboud also had before him EMBD’s lawsuit against Moonilal in which the state entity alleges that the contractors, including another contractor Namalco, conspired with its former CEO Gary Parmassar and then line minister Moonilal, its former divisional manager Madhoo Balroop and engineer Andrew Walker to corruptly attain the contracts. EMBD also sued Fides, Namalco, Parmassar, Moonilal, Walker and Balroop.

The lawsuit, initially filed on November 20, 2017, has now been assigned to Justice Frank Seepersad since Aboud was elevated to the Court of Appeal. The EMBD’s claim alleges bribery; breach of fiduciary duty on the part of Dr Moonilal and three senior officers of the EMBD; collusion or unlawful means conspiracy and knowing receipt of dishonest assistance. The EMBD also made declarations that the awarded contracts were void after three companies filed separate claims for sums allegedly owed to them for road construction works three months before the 2015 general elections.

EMBD said the three claimants colluded among themselves – and with the other defendants in the related action – and were involved in an unlawful means conspiracy that led to the award of 12 contracts and the payment of over $300 million dollars for defective and overpriced work.

It is said the “cartel” ensured that specific companies were awarded contracts at inflated amounts and received monies that were not due for defective, irremediable or useless works.

EMBD’s mandate was to sub-lease agricultural state lands, manage and develop lands formerly owned by Caroni (1975) Ltd and develop residential sites on those lands. According to the company’s claims, the awarding and management of massive road-building contracts was not part of its mandate.

No one has filed a defence pending the outcome of the appeals process.