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$3 million for TPP piles despite not having trade license-Report

-BVI Investment Club’s involvement in Tortola Port Partners (TPP) raises potential issues of conflict of interest
The National Democratic Party Government of Premier and Minister of Finance Dr. The Honourable D. Orlando Smith remains under a cloud over the Auditor General's Report on the Port Development Project. Dr. Smith released a statement late Friday November 1, 2013 where he claims that he was going to set the record straight on the project. Who do you believe the Premier or the Auditor General Ms. Sonia M. Webster? Photo: VINO/File
The Auditor General's Report outlined the roles of both Minister for Communications and Works Honourable Mark H. Vanterpool (right) and then Ports Consultant to the Minister Claude Skelton-Cline. Many interpret the report to suggest that both gentlemen allegedly overstepped the Ports Authority Act of 1990, section (e) and section 5 (d), according to the report [page 6, (34, 35, 36, 37, 38). Photo: VINO/File
The Auditor General's Report outlined the roles of both Minister for Communications and Works Honourable Mark H. Vanterpool (right) and then Ports Consultant to the Minister Claude Skelton-Cline. Many interpret the report to suggest that both gentlemen allegedly overstepped the Ports Authority Act of 1990, section (e) and section 5 (d), according to the report [page 6, (34, 35, 36, 37, 38). Photo: VINO/File
For over a year the Virgin Islands Party (VIP) Opposition members, Honourables Julian Fraser RA, (R3) and Andrew A. Fahie (R1), as well as talk show hosts, the media and other interest groups, have been sounding the alarm about the controversial Port Development Project. The Project was first brought to the public’s attention by Minister for Communications and Works Honourable Mark H. Vanterpool (R4), one of his many pet projects following the 2011 general elections that saw the National Democratic Party (NDP) regime gaining power. After many questions and suspicions continued to surface about the Port Development Project and road blocks by Opposition members to obtain answers to their many questions in the House of Assembly, the Auditor General of the Virgin Islands Ms. Sonia M. Webster, using her power under the Constitution, did an audit of the project. Photo: Team of Reporters
For over a year the Virgin Islands Party (VIP) Opposition members, Honourables Julian Fraser RA, (R3) and Andrew A. Fahie (R1), as well as talk show hosts, the media and other interest groups, have been sounding the alarm about the controversial Port Development Project. The Project was first brought to the public’s attention by Minister for Communications and Works Honourable Mark H. Vanterpool (R4), one of his many pet projects following the 2011 general elections that saw the National Democratic Party (NDP) regime gaining power. After many questions and suspicions continued to surface about the Port Development Project and road blocks by Opposition members to obtain answers to their many questions in the House of Assembly, the Auditor General of the Virgin Islands Ms. Sonia M. Webster, using her power under the Constitution, did an audit of the project. Photo: Team of Reporters
ROAD TOWN, Tortola, VI- In a statement released late Friday afternoon, November 1, 2013 by Premier and Minister of Finance Dr. The Honourable D. Orlando Smith in response to the Auditor General’s (AG) damning report on the Ports Development Project, the Leader of Government Business claimed that the report was related to the Heads of Understanding Agreement and he sought to “set the record straight on a number of issues”.

However, it’s important to note that the Auditor General Ms Sonia M. Webster, in her report, addressed the process both before and after the halting of the project by the Dr. Smith Administration.

On page 9 (47) of Ms Webster’s report she stated that “the initial process, which was being expedited, contained several shortcomings which could function to the detriment of the Government and the BVI Ports Authority. Efforts to secure independent expert knowledge on the format, structure and provisions of Public Private Partnership (PPP) agreements were sought only after steps were in the advanced stages for drafting the terms of the parties’ relationship.”

$3M dollars of Ports money to purchase piles for TPP-no trade license

After outlining in our previous article published on October 31, 2013 about the unfair advantage given to Tortola Port Partners (TPP), according to the Auditor General’s Report, another new fact has been unearthed.

On page 7 (39) the reports says, “the three million dollars for purchasing piles was approved by the Board, but the transaction was not pursued for reasons not disclosed in the record. Despite the push to purchase piles for use by Tortola Port Partners, the Department of Trade advised that no application for a trade license had been received from the developer to do business in the BVI.”

In June 2012, before the project was stopped by Premier Smith, the Financial Secretary Neil M. Smith sought independent legal advice from specialists in the field of Public Private Partnerships (PPP). A team of lawyers from the firm of Baker & McKenzie LLP in the UK reviewed the proposed Project Development Agreement (PDA), the Heads of Understanding (HOU) agreement and the Ground Lease that had been drafted for execution by the Authority and the Developer.

Legal review confirmed BVI was at grave disadvantage

The independent legal review clearly cemented that the Government and the BVI Ports Authority would have been the loser in the agreement with the developer TPP, according to the report.

On page 7 (45) the agreement was not in the BVI’s interest because among other things:

  1. Absence of guarantees or a performance bond which would require the controlling entities for the developer to provide substantive support or security for its obligations should it be unable to perform as contracted;
  2. Allocation of risk drafted in a manner to heavily favour the Developers;
  3. Failure of the development documents to state how the project will be financed;
  4. Absence of performance standards. These are especially desirable to regulate the operation of the Pier Park ensuring it is operated and maintained to acceptable standards
  5. Absence of a positive obligation on the Developer to carry out the Environmental Assessment, abide by its conclusions and carry out its works in accordance with strict environment requirements and standards;
  6. Failure of the agreements to give the Authority approval rights for the initial design and any changes;
  7. Absence of stipulation which would required the Developer to assume the risk for the performance of its subcontractors;
  8. Absence of a provision stipulation ownership of the pier;
  9. Absence of safeguards preventing the Developer from transferring shares at least until after the works are complete;
  10. Absence of a provision which allows the Authority or the Government to set in to remedy situations or in case of a default;
  11. Existing ambiguity as to the nature and purpose of the HOU. The document is being referred to in the PDA in a manner which suggests that it is a full form of agreement when usually an HOU is used simply to document key terms which would be embodied in detail in a more substantive agreement;
  12. Failure of the PP Agreement to set out obligations of the cruise lines in detail. In particular, nature of their use of the pier (guaranteed passenger numbers and ships per year), whether the agreement is binding or contingent on other provisions, whether cruise lines are contributing to the cost of the project and consequences of the cruise lines failing to sue the pier as agreed;
  13. Failure to make provision for the Authority to be a party to the berthing agreement. This is desirable as the Authority will be continue to operate the pier and the agreements are a major source of revenue for the project;
  14. Failure of the HOU to stipulate whether the decisions of the Cruise Industry Planning Board are binding or simply advisory. Though this is likely to be the latter.

Project lacked transparency even after it was halted by Dr. Smith

Despite all this, Premier Smith claimed in his statement of November 1, 2013 that the recommendations his government obtained “were based on assessments of legal, financial and technical reports engaged by experts….” “Which concluded that the TPP proposal; was more favourable to the BVI.”

While it is accurate of the Premier that his Government stopped the Port Pier process in August 2012  and “issued an open invitation to tender” as outlined in his statement last Friday, the AG Report throws cold water on the transparency process after it was halted by the National Democratic Party Government.

On page 10 (59) the report clearly stated that “the provisions in the invitation for expression of interest mirrored the previously accepted proposal from the Tortola Port Partners to a considerable extent which may have created an unfair advantage. This opens the door whereby the impartiality of the process could be challenged.”

BVI Investment Club’s Role in Project- conflict of interest?

On Page 11 (62) of the Auditor General’s Report, Ms Webster raised the involvement of the BVI Investment Club.

“The involvement of BVI Investment club raises potential issues of conflict of interest in the following respects:

  1. The principal of PFK (BVI) Ltd., the firm engaged to prepare a business case for the initial Tortola Port Partners/BVIG PPP is also a President of, and public figure for, the BVI Investment Club;
  2. The declarations of interest for election candidates published and Gazetted on 10, October 2011 show more than one elected member with shareholding interest in subsidiary companies owned by the BVI Investment Club.”

Town and Country Planning Dept shut out-Report

Another important fact in the Auditor General’s report is found on page 5 (28).

Under the laws of the Virgin Islands, specifically the Planning Act which governs public and private sector developments, all projects in the VI must be approved by the Planning Authority. It’s the law.

However, the report reveals “significantly, the Town and Country Planning Department (TCP) which is the Government’s primary advisor on development ideas, concepts and planning issues was notably absent from the cross agency consultations solicited for this major development scheduled to take place in central Road Town. The Department did, however, receive development plans for approval in March 2012 (submitted on behalf of the then Managing Director of the Authority Mr Vincent O’Neal) that were limited to the Disney affiliated pier expansion and Welcome centre.”

In other words, the Virgin Islands Party (VIP) project with Disney followed the rules and sought TCP's approval.

59 Responses to “$3 million for TPP piles despite not having trade license-Report”

  • A. Fahie (05/11/2013, 09:32) Like (1) Dislike (0) Reply
    WOW
  • ooooo (05/11/2013, 09:34) Like (8) Dislike (0) Reply
    cart before horse again?...this government really cant be trusted
    • SILLY ME (05/11/2013, 11:56) Like (0) Dislike (17) Reply
      ndp ALL THE WAY ME AINT CARE WHAT A MAN SAY
      • @ SILLY ME (05/11/2013, 19:24) Like (2) Dislike (0) Reply
        MVW cart your desperate backside we not going with NDP ever again...all the public relations and manipulations no help to you deman
  • yes (05/11/2013, 09:36) Like (10) Dislike (1) Reply
    Still no one gone to jail well saw
  • . (05/11/2013, 09:37) Like (11) Dislike (1) Reply
    I like mrs webster, she seems fair and not easily intimidated.
    • free all ova (05/11/2013, 10:01) Like (8) Dislike (0) Reply
      Auditor General report is spot on
      • dem say (06/11/2013, 00:56) Like (0) Dislike (0) Reply
        The people's message to the NDP Government is to pull up their socks from now on, or crapaud smoke their pipe.
  • Grave (05/11/2013, 09:38) Like (4) Dislike (0) Reply
    NDP...lord...speechless.
  • ccc (05/11/2013, 09:40) Like (7) Dislike (0) Reply
    I am totally baffled by this 3 million move with out a trade lic?
  • Wrong (05/11/2013, 09:47) Like (10) Dislike (0) Reply
    Time for new election. NDP cares nothing about the country . They only care about themselves. You set the lawns then turn around and break them. What message are you sending to the youth of the territory? You are expected to be role models for the youth.
    • jh69 (05/11/2013, 11:19) Like (6) Dislike (1) Reply
      I think it's shame on the people of the BVI for re electing the NDP. As the saying says fool me once, shame on you, fool me twice, shame on me. NDP had an agenda to finish and the people fell for their we are better nonsense again. So I think people should stop complaining and take what they deserve. You voted them in then deal with the consequences.
      • voter (05/11/2013, 13:02) Like (0) Dislike (2) Reply
        I agree but what are the choices? Ndp may have an agenda but they're not as backwards as the VIP. Do you think Ralph or Fraser or Fahie can really lead us? You really believe they can do better than Ndp? Who we going to elect, Sowande? Sam? Edmund? Doug Wheatley? Who?
        • GoonSquad (05/11/2013, 13:12) Like (1) Dislike (2) Reply
          then lets give it to Alvin and the PEP lol
        • jh69 (05/11/2013, 14:29) Like (3) Dislike (0) Reply
          That is why we need new blood. New people with an actual plan, one that will diversify the economy and actually respect the laws of the land. However, as bad as VIP were NDP is worse to me. I don't think that they genuinely have the interest of the people of the BVI at heart. But that's just my opinion based on what I have experienced with an NDP government.
        • Me (05/11/2013, 21:24) Like (0) Dislike (0) Reply
          Why is Orlando better than those you mentioned? All he has in his party are expats.
  • samuel (05/11/2013, 10:31) Like (3) Dislike (0) Reply
    I am in awe. I am beffled and speechless. What stands out most is the conflict of interest issue raised in the Auditor General's report. The content of this report makes it harder and harder to view this Government as open and transparent. My only hope is that Dr. Smith come out and make a public statement clarifying certain aspects of the Report which put his Government in the spot light.
  • Virgin Gorda in your face (05/11/2013, 10:42) Like (0) Dislike (0) Reply

    Mr Premier as a should be Respectable person stop please stop while you a still creaping and Cline Skelton mistakes it making your administration really can't be trusted,for the morogrity of us on VG that vote for you,we a fed up of you guys just like we fed up of Ralph were now gonna vote in young Blood

  • pep (05/11/2013, 10:45) Like (2) Dislike (1) Reply
    the question is who leaked this report?
    • bay yute (05/11/2013, 11:32) Like (6) Dislike (0) Reply
      who care thank god for the media
    • LOLL (05/11/2013, 21:26) Like (0) Dislike (0) Reply
      That is all they out 'bout, who leak and listening in to people's conversations. they fully well know who prematurely giving out their information, but want to tarnish good citizens reputation. They need to stop looking scape-goat for their nonsense.
  • shaw (05/11/2013, 10:51) Like (2) Dislike (0) Reply
    Vincent O'Neal also was pushing for the 75,000 sq ft three-storey West End ferry dock. They did have several public meetings about it just to fulfill planning act protocol. NDP stopped it--- for now--- as west end will probably become a bigger cruise ship stop with either party..

    BUT VIP was only talking with Disney about dock and visitor centre-- not the complete landside monstrosity. And they are guilty at getting the Disney fox in the hen house. NDP took it to a whole new level.
    I often commented on the lack of input by town and Country, a basically useless dept considering they are overruled by ministers and favourites all the time. They have no teeth let alone vision or understanding of historic preservation.
    This behavior persists and I hope the AG does an audit of the AIRPORT which falls under the same suspicion.
  • To Samuel (05/11/2013, 10:54) Like (4) Dislike (0) Reply
    He is coming out with. He just need to get the funds to Glover Park. Their fees gone up now is it's talking a bit longer. But they are coming with the speech soon don't worry.
  • The real BVI (05/11/2013, 11:03) Like (5) Dislike (0) Reply
    Can you spell CORRUPTION!?!
  • HMMM (05/11/2013, 11:05) Like (5) Dislike (0) Reply
    Too much corruption by this NDP Government. Why isn't the Governor acting on these things? I am totally disgusted right about now!
  • shocks and awe (05/11/2013, 11:10) Like (3) Dislike (1) Reply
    I am not surprised at all. I knew all along that we are being sold out.
  • guth (05/11/2013, 11:31) Like (1) Dislike (0) Reply
    the plot gets wrosth vino do not release anymore
    • polo (05/11/2013, 13:41) Like (0) Dislike (0) Reply
      This has been long in coming as Hon. Smith is not in control of his government . The project is needed but too many questionable actions around the project by VM and CSC.
  • paper boy (05/11/2013, 11:48) Like (4) Dislike (0) Reply
    WHAT CAN WE EXPECT TO HEAR NEXT????? AND WE SICK OF THESE SILLY STATEMENTS POORLY WRITTEN FROM DR. SMITH
  • ABC (05/11/2013, 12:06) Like (5) Dislike (0) Reply
    "Dr. Smith should come out and make a public statement." Excuse me? he has already done so. In his statement he has contradicted ever thing that the Audit General has stated in her report. His problem is, he is digging a deeper hole every time he speaks. He was warned repeatedly that his Minister and Claud will eventually sink his ship, but circumstances will not allow him to do what is necessary.
    What is the prudent way out of this mess? Assuming that no binding agreements has been signed with these "investors", he would do well to bring this proposed project to a halt and begin with a clean slate. Hold off on this $35 million dollar loan which is being persued by the the Ports Managing Director. Reassign Claud to duties in the Library and make Mark the Minister for culture. Their continued presence in their present position will do more harm than good.
    Dr Smith listen, to do nothing is not an option. Please don't wait for the UK to show you the door.
    • @ABC (05/11/2013, 13:08) Like (3) Dislike (0) Reply
      Well said. Reshuffle and let each minister know that they don't own the Ministries. You make a lot of sense, but who need to know probably wouldn't read your view.
  • legal eagle (05/11/2013, 13:08) Like (3) Dislike (0) Reply
    did any one call the police? or scotland yard?
  • vi (05/11/2013, 13:34) Like (0) Dislike (0) Reply
    NO MORE hearsay and petty foolishness this is real
  • Native Boy (05/11/2013, 13:40) Like (4) Dislike (0) Reply
    I am really disappointed in the NDP. Never my vote again for I thought they would have done some good but they are doing very bad at our expense.
  • she the cat mother (05/11/2013, 13:42) Like (3) Dislike (0) Reply
    this project smells of wrongdoing come clear MR. PREMIER
  • Byron Scott (05/11/2013, 14:00) Like (6) Dislike (0) Reply
    Dr. smith bell those cats mvw, mv, csc, and pow before they fall your government bossman
  • too late (05/11/2013, 15:51) Like (5) Dislike (0) Reply
    I just saw mark response pure crap
  • talk (05/11/2013, 15:57) Like (1) Dislike (0) Reply

    So tell me why no one jumping up on M. M@l**e and his greed also getting the best of him? He's all in and through this deal and don't be surprised if he's not the leader. After all he advises the premier on the financial affairs of the country.

    • Mr. Me too!! (05/11/2013, 16:09) Like (3) Dislike (0) Reply
      Lord talk tek it eaaaaasy nuh buddy. You going talk all? Save some for another time man..Ha haiii...Aubrey say Ting te talk! Who's TPP? Who's PKF? Oh gush!
  • Oh lord My God (05/11/2013, 16:21) Like (2) Dislike (1) Reply
    Dr Hon Olando Smith can not as a leader mislead us like this. I am reading this and his press release and it seems to be he continues to lead us down the wrong path.. I will never vote for them again as a matter of fact i done with voting. I dont know who to trust any more. its getting worst and worst. i thought Bi water was bad. hmmmmmmm.
  • auditor (05/11/2013, 17:47) Like (3) Dislike (0) Reply
    I am with the auditor she can only deal with the fact. She is a professional. The government is corrupt. And they are going deeper and deeper.
  • Raw digger (05/11/2013, 18:27) Like (3) Dislike (0) Reply
    Can some body tell me y I should Stand up in a line for 2 hours to make a (X) again hmmm! Thing to tell dah king
  • facts man (06/11/2013, 00:46) Like (0) Dislike (0) Reply
    NDP were using Glover Parks tactics again with Mark's statement...however people have grown wiser.
  • NDP voters (06/11/2013, 01:01) Like (0) Dislike (0) Reply

    M**k and M***n will make enough mischief for the NDP to give the VIP a chance to win with Fraser as Leader and bring back pain and suffering to the people while they live in luxury and wealth.

  • wuse-up (06/11/2013, 07:46) Like (0) Dislike (1) Reply
    Although the process smells fishy and questionable; the money in question was being given to Virgin Islanders. When the white boy come here to do business we give them all forms of incentives and tax free privileges….what makes me smile about this matter; when non-virgin islanders are given contacts and large sums of money the “virgin islander” gets pissed NOW “we” have the BV Islander getting the opportunity to make money and there is still an issue- as I noted, the process is questionable BUT it is our people that is making the money; question- who better to get the 3-million than our own people….
  • beat (06/11/2013, 10:26) Like (0) Dislike (0) Reply
    They don't have YOUR interest in mind, they have THEIR political agenda in mind.



  • keep it real (08/11/2013, 06:28) Like (0) Dislike (0) Reply
    Great reminder of the NDP financial management skills that they boast about but now we know better!!


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