BVI court lifts freeze order on zipline company's accounts

A BRITISH Virgin Islands (BVI) judge has unfrozen the bank accounts of the directors of Original Canopy Tours Enterprises Ltd, a statement from the directors said on Thursday.

In November, the Tobago House of Assembly (THA) received two freezing orders against OCT directors Richard Graham and Darren Hreniuk in Trinidad and another in the BVI, where the company is based. The two freezing orders mirrored each other.

The freezing orders were sought by the THA ahead of its lawsuit for US$416,900 for alleged breach of contract in the 1.5 kilometre zipline project planned for the Main Ridge Forest Reserve.

In the release, Hreniuk said the unfreezing of the accounts of the directors and the company in the BVI court was a “serious blow” against the THA.

The release also said he and Graham were “relieved” by the ruling.

“The pair of OCT directors, Richard Graham and Darren Hreniuk, are relieved that courts were able to unfreeze their accounts after the THA through its lawyers, Alexander Jeremie & Co claimed that the company acted fraudulently in its dealings with THA zipline project.”

The release said Justice Tana’ania Small Davis, KC, in the Eastern Caribbean Supreme Court’s commercial division for the High Court of the BVI lifted the freeze order last Tuesday, “after she found no basis to continue the freeze based on the arguments put forward by the THA’s legal team.

The BVI law firm of Harney Westwood & Riegels (HWR) was retained by Alexander Jeremie & Co on behalf of the THA, the release said.

Hreniuk said in the release the unfreezing of the accounts came on the heels of THA Chief Secretary Farley Augustine and Jeremie’s claim that the zipline company was a “ghost” company as their searches in the BVI, where the company is registered, came up empty-handed.

The release also said, “We are happy that the truth is coming to light in this matter and we also intend to fully clear our name in the Trinidad and Tobago courts.

“We have been operating for more than 20 years with over 35 projects in 15 countries. It was the THA that sought us out. I don’t wish to say anymore as these proceedings are set to be heard by the TT courts,” said Hreniuk, who was described as the director at the design-build company and inventor of the self-equalising dual-line safety system using synthetic cables which are patented in several countries.

The THA was ordered to pay the costs in the BVI court.

The freezing orders in both TT and the BVI initially restrained the two directors from directly or indirectly removing from TT, the BVI, and the US assets held in a First Citizens Bank account in Scarborough and in a first Caribbean International Bank account in Tortola, up to US$500,000, which is the value of the THA’s claim.

The two are expected to approach the courts in TT to have the second freeze order, granted by Justice Kevin Ramcharan on November 5, lifted as well.

The order in the BVI allowed the two to spend US$5,000 each week towards their living expenses and US$170,000 to defend the proceedings in that court and in TT.

The two men were also restrained from changing ownership of any shares they have in any company in the BVI.

The THA filed the claim against the company in November 2021. It seeks loss and damages for breach of contract "as a result of the defendant's failure to deliver all materials and equipment to the claimant" as well as failure to comply with the services agreement between the parties.

Former chief secretary Ancil Dennis told a PNM political meeting he had instructed the chief administrator, the Division of Tourism, Culture and Transportation, and senior state counsel to “lawyer up” and take the matter to court, as his administration spent months looking at the zipline issue.

At the time, he said the THA was going to pursue it to the “very end” to ensure the truth was revealed and that the assembly was able to recover damages for the failure to deliver on the project for the people of Tobago.

In 2015, the zipline project was announced by former tourism secretary Tracy Davidson-Celestine, but was never completed, despite the THA's spending $2.5 million on it.

It was subsequently revealed that the project comprised 12-14 platforms and 11-13 lines, including a special observation platform for birdwatchers and photographers. The previous Executive Council approved $4 million for the project, which was expected to be completed within seven weeks of the materials arriving on site.

A service agreement was signed in June 2015 between the THA and Original Canopy Tours Enterprises Ltd to design, develop and construct a high-angle canopy tour course. Stewart-Phillips said representatives of the company visited Tobago in September 2015 to map out the course, and the division paid two of the four payments under the signed agreement.

In the campaign ahead of the January 2021 THA election, Augustine raised the issue, saying Davidson-Celestine had to answer to taxpayers on the failed project.

Augustine claimed a 2016 auditor general's statement expressed concern over the project, noting a visit to the stores section of the tourism division revealed only some ropes on hand.

"Imagine that we spent $2.5 million and the only thing the auditor general could find was some rope. Now that must be the most expensive piece of rope in the world,” he said then.

Davidson-Celestine sued Augustine for defamation in relation to the zipline project. Her lawsuit was automatically struck out on December 1 because her legal team did not apply to hold a case management conference in the case after the defence was filed.

She has since indicated she intends to refile her claim since her previous attorney (Jeremie) now represents the THA.

At a news conference in November, the PNM’s Tobago Council political leader Ancil Dennis responded to Augustine’s claims that the zipline company did not exist, providing proof it did.

Dennis read from a document headlined Territory of the British Virgin Islands: BVI Business Company’s Act 2004, Certificate of Good Standing.

He revealed the name of the company is OCT Enterprises Ltd and its BVI company number 430213.

“The company is not only in existence, but, by virtue of the information within this document, this company is also in good standing,” he said.

Dennis said he pursued the matter “relentlessly and diligently” during his tenure as chief secretary from May 2020-December 2021.

“When we got to the point of finding information that told us what transpired with the zipline we took the matter to court because it was the responsible thing to do.”

Dennis said he is also hoping “if the possibility exists, that we will be able to recoup every bit of expenditure that was utilised in this project. That is my hope and expectation concerning this matter.”