Young goes after cabinet ministers over Cepep firings

GOVERNMENT’S decision to terminate hundreds of Cepep contracts is again under fire as former prime minister and opposition MP Stuart Young, SC, leads a team of attorneys for three construction companies, challenging the move that left thousands unemployed and fueled claims of political victimisation.

Justice Margaret Mohammed permitted Hughelen General Contractors Ltd, Base Construction Company Ltd, and Vision Engineering Ltd to pursue judicial review against the Cabinet, the Minister of Finance, the Minister of Public Utilities, the Cepep Company Ltd, and its CEO Keith Eddy.

The companies allege the June 27 mass termination of approximately 350 CEPEP contractors was unlawful, unreasonable, and politically motivated.

The companies argue that the decision violated principles of fairness, natural justice, and due process, leaving an estimated 10,000 workers jobless. They claim the terminations were carried out without warning, consultation, or evidence of wrongdoing, and that the decision was aimed at targeting contractors believed to be linked to the opposition People’s National Movement (PNM).

The companies contend that in June, Public Utilities Minister Barry Padarath and other cabinet members publicly branded Cepep contractors as politically aligned with the PNM. It referred to a post-cabinet briefing on June 5, when Padarath allegedly referred to contractors as “PNM boys and girls feeding at the trough” and announced an audit of the programme. Two weeks later, the companies contend, Local Government Minister Khadijah Ameen told Parliament that Cepep funds were channeled to relatives of PNM officials.

The companies’ filings say the ministers’ public statements have not been resiled from, corrected or in qualified and was the decision to terminate was made in bad faith, intended to punish the opposition and those perceived to be affiliated with the PNM.

“The decision therefore reeks of political victimisation and/or a political attack or witch hunt against the PNM and/or persons perceived to be affiliated to or associated with the PNM, and is an egregious abuse of power in a country which subscribes to democratic principles in its Constitution and is an affront to our democracy.

“The applicants were, therefore, wrongly and unfairly caught up in a sweeping and indiscriminate policy decision and/or action, and sacrificed as ‘collateral damage’.”

The contractors insist they were never contacted for audits, nor asked to provide information, before their contracts were terminated.

The lawsuit said on June 27, Eddy issued termination letters to contractors, citing contractual provisions and promising payment in lieu of notice. At a meeting that day, he reportedly told contractors the directive came from the corporation sole, the Minister of Finance.

The companies said no audit findings were presented and no allegations were made against them individually. They contend that the government acted prematurely, before any review was complete, and unfairly branded all contractors as politically tainted.

Eddy is accused of acting on instructions on the Finance Minister. The companies’ lawyers contend he was required to act in accordance with policies, decisions, directions and instructions of the Cepep board.

“By by-passing the board of directors and taking instructions directly from the corporation sole, Mr Eddy failed to satisfy or observe conditions and procedures required for the lawful exercise of his managerial duties and/or acted unlawfully and/or contrary to law,” the lawsuit said, citing the recent judgment against the former SporTT board and its former CEO on breach of fiduciary duty.

The applicants are seeking multiple declarations from the court, including that the Cabinet and ministers acted in bad faith and abused their powers, and that Cepep and Eddy acted unlawfully by following unauthorised instructions. They are also asking the court to quash the termination decision, award damages, and order costs.

“The decision reeks of political victimisation and/or a political attack or witch hunt against the PNM,” the filings states, calling the termination an “egregious abuse of power in a country which subscribes to democratic principles.”

The lawsuit said the decision, not only left thousands struggling to find alternative employment or regular/steady employment, making it difficult to meet their family’s basic needs, but has also left communities “overgrown, unkempt and littered with rubbish, creating not only an eyesore but also posing a health risk.”

The contractors further allege that despite the termination letters’ promise of payment in lieu of notice, they have not received compensation.

A case management hearing is set for December 3.

This latest lawsuit, filed on September 26, follows a similar claim by another contractor, Eastman Enterprise Limited, a Laventille-based general contracting company.

Mohammed is also hearing that matter and has ruled on a preliminary point raised by Cepep, in which she stayed its lawsuit. This has since been appealed. Eastman’s appeal that Mohammed erred in law and fact when she ruled on August 7 that the company’s claim must first go through the contract’s mediation process before being brought to court. The judge also referred the case documents to the DPP for review and ordered Eastman to pay costs.

Eastman also wants an order to send its lawsuit and injunction application back to the High Court before another judge, a declaration that the referral to the Director of Public Prosecutions (DPP) was procedurally improper and unlawful and if the court rules in its favour, for the Appeal Court’s order and decision to be sent to the DPP.

Eastman’s appeal, initially scheduled to be heard on October 2, has since been rescheduled to October 31. In the Eastman's lawsuit, Cepep contends there was no Cabinet approval to extend the contracts to 2029, days before the April 28 general election. This, the company said, would have cost the state $1.4 billion

Sanjiv Boodhu, and Layanne Sooklal also appear with Young for the three companies based in Princes Town, Sangre Grande and Marabella. The Cepep company has since initiated legal action against its former chairman and board.