Fmr. Premier Ralph T. O’Neal knew about ‘Global’ contract
This was revealed in an exclusive interview with the former Minister for Communications and Works Hon Julian Fraser, RA regarding the Global Water Contract and who knew what and when.
Global Water Associates has reportedly threatened to seek legal action to recover approximately $22.9M, claiming that Government failed to honour two agreements.
Recently, an online news site claimed that Opposition Leader Hon. Ralph T. O'Neal said he never investigated the matter because it was never brought to his attention by the then Minister for Communications and Works. The headline of the article suggested that Hon. O’Neal said he was not aware of the contract although his alleged comment inside the article seemed to suggest Hon. O’Neal saying he was not aware of any problems with the Global Water Associates contract. Hon. O’Neal declined to comment when asked for clarification.
In addition, First District Representative Hon. Andrew A. Fahie recently stated that since 2007 during the National Democratic Party (NDP) administration to present and even during the Virgin Islands Party’s (VIP) term in office, he had been raising concerns about the two Global Water Associates contracts. He also said as recent as the last Sitting of the House of Assembly he had asked Minister for Communications and Works Hon. Mark Vanterpool about the contract but he reportedly used sections of the Standing Order to refrain from answering the questions.
According to Hon. Fraser, at the insistence of the then Minister for Education Hon. Fahie, Cabinet requested a Report on the matter, and in April 2009 he presented the Cabinet with the complete history and up to date status of the relationship with Global Water Associates.
Hon. Fraser pointed out that the report submitted to Cabinet stated that on September 19, 2006, Government contracted Global Water Associates Limited to design, build and install a 250,000 US gallon per day Sewage Treatment Plant for a lump sum amount of Two Million Six Hundred and Eighty Thousand Eight Hundred and Forty Six Dollars ($2,680,846.00). The contract time for the delivery of the plant was one hundred and eighty (180) days.
He said the Report indicated on February 12, 2007, Global Water Associates wrote to Government expressing concerns over the project delays and on February 15, 2007 the Ministry responded and outlined a revised work schedule, with a projected November 20, 2007 completion date. Global Water subsequently agreed to an extension of time to November 2007.
The former Minister for Communications and Works added the Report also showed that on July 19, 2007, Global claimed an increase in cost of Eight Hundred Thousand Dollars ($800,000.00) due to increased construction costs reportedly caused by the NDP Government’s delay in delivering the site.
And further, that on August 31, 2007 the Financial Secretary issued instructions for Global Water Associates to “cease any additional work on the project”, and that the Project Manager's Report had indicated that the project was already 22 weeks delayed.
The report according to him, noted that on October 31, 2007 the Ministry for Communications and Works, responded to Global’s claim for increased cost, indicating that the claim was without merit and in November, 2007, the Ministry requested that Global ship the plant to the Virgin Islands and that Global was also claiming storage charges to hold the plant in the U.S. at Government’s request due to the incomplete site.
He said the report stated that in order to avoid further exasperating this claim, and considering that Two Million One Hundred Forty-Four Thousand Six Hundred and Seventy Six Dollars and Eighty cents ($2,144,676.80) ( essentially the cost of the plant) of the contract sum had already been paid, the decision was made to have the plant shipped. And on November 28, 2007 Global wrote to confirm Government’s intentions and proposed some shipping arrangements for the plant.
On November 29, 2007 the Ministry wrote to Global requesting the final shipping arrangements and Global advised that the plant was delivered to the Greenland storage site in January 2008 and that in the absence of Global’s detailed design, it was impossible to confirm the presence of all components.
Virgin Islands News Online was told the Report indicated that in March 2008 Government engaged CBE Engineering to examine the feasibility of the siting of the Plant among other things and that report was submitted to the Ministry of Communications and Works during June 2008. It was also stated that in March 2008 the Government engaged HTA to conduct an Engineering Review and Assessments of the works completed. This review was submitted to the Ministry in June 2008.
Global Water Associates raises “crucial issues” regarding project
According to the former Minister, the Report stated that on July 10, 2008, Global wrote to the Ministry of Communications and works highlighting their dissatisfaction with some of the contents of a July, 3, 2008 BVI Beacon article. In this correspondence, Global Water raised five (5) items that they termed “crucial issues”.
And on July 18, 2008, the Ministry invited Global to submit a proposal to resume and complete the Plant works, however, on August 25, 2008, Global responded highlighting a number of issues to be discussed, including Design issues including headworks and effluent pumping; Completion of the site preparation works; Installation of power, telephone and piping requirements; Defects liability and equipment warranties affected by the projects suspension; Construction costs (highlighted as a major item); and additional engineering costs.
The former minister said the Report informed that the Ministry subsequently met with Global on two occasions to discuss these matters. Global Water priorities were construction costs and additional engineering costs. Global also contended that their claim for the increase in construction costs was still unsettled to their satisfaction, and that resuming the project works was accompanied by additional engineering costs.
The Ministry made clear: “Our position on these matters was that although our position of our October 31, 2007 correspondence appended remained the same, considering the additional delay this matter would be once again tabled and considered; however it should not prevent the resumption of the project. Regarding the engineering costs, we were of the view that since we neither agreed nor requested any design changes, there should be no engineering charges to incur.”
The former minister said the report informed that it was agreed at the time to examine and confirm the status of site preparation works and the installation of power, telephone and piping requirements and that the Ministry was of the view that the issues of design and defects liability and equipment warranties reportedly affected by the projects suspension, although warranted, could be discussed and resolved once the project resumed. “Global was generally not in agreement with most of our views.”
Global informs Hon. O’Neal of termination of contract
The former Minister revealed that in the report, it was stated that on September 19, 2008, Maples and Calder (Global's Lawyers) issued a notice of termination addressed to the Premier requiring Government to remedy the breaches listed and deliver the site and on October 1, 2008, the Ministry responded to Global and confirmed the status of the critical items necessary for the project to resume.
It also stated that on October 1, 2008, the Ministry wrote to the Premier’s Office to update the Permanent Secretary on the Ministry’s position and querying the existence of correspondence to the Premier and that The Ministry later found out that the correspondence in question was Global’s September 19, 2008 termination notice.
He said the report stated that On October 2, 2008 after considering the CBE and HTA reports, Cabinet appointed a select committee, of which he was not a Member, to investigate the contracts for the project and report back to Cabinet. “As of the date I left office no further instructions or directive has been received in this regard.”
It was further stated that on October 27, 2008, Maples and Calder terminated the contract on behalf of Global and that the correspondence was again addressed to the Premier.
This was prior to the December 2008 negotiations with Biwater.
The Report also noted that on December 4, 2008, the Ministry wrote to the Permanent Secretary, Premier’s Office attempting to confirm that the issue of Global Water Associates was being addressed and that on February 2, 2009, the Permanent Secretary and Deputy Permanent Secretary of the Ministry met with the Permanent Secretary, Premier’s Office to among other things; seek clarifications on the action taken or directive given by the Premier on this matter. The Permanent Secretary, Premier’s Office was reportedly given a verbal brief on the matters leading up to the current events, and the Ministry’s views on the matter.
And also that on February 9, 2009, the Attorney General wrote to the Permanent Secretary, Premier’s Office requesting further information on the Global issue and that the Permanent Secretary, Premier’s Office on February 10, 2009, wrote to the Ministry of Communications and Works seeking clarification in accordance with the Attorney General’s request. The Ministry confirmed that the documentation had been supplied previously. However, on April14, 2009 the Ministry again forwarded the information reflecting the current status and our position.
Confusion regarding Biwater to be blamed on NDP administration
On February 18, 2010 the then Premier Ralph T. O’Neal signed a contract with BiWater following a cabinet decision. This decision seems to have raised concerns among persons in the community, however, given the accounts outlined above it is clear that the Biwater Agreement which includes a provision for the "erection and installation of the sewage treatment plant (supplied by others) at Paraquita Bay", has no conflict with Global's contract which had long been terminated.
Hon. Fraser has lashed out at the NDP administration, which he says pretends that the agreement with Biwater does not exist.
“The confusion surrounding this whole Biwater Agreement lies at the feet of this NDP administration which continues to pretend that the Agreement and Biwater does not exist. This disregard for the Terms of the Agreement was highlighted in the House of Assembly when the Minister (Hon. Mark Vanterpool) told the House that his Ministry had done no expert verification of the drawings and specifications for compliance with both the American Water Works Association, and the American Society for Testing and Materials standards as required by the Agreement. And neither did they issue any certificates of completion, nor do they make regular construction inspections, as required.”
The Third District Representative, known as the Liberator, concluded that most importantly, the Ministry of Communications and Works has elected to fire the Biwater Project Coordinator, a person who sat at the negotiations table with Biwater on the Agreement, and knew the terms of the Agreement inside out, and also knew the obligations of government with intimacy, and would most definitely have known when and if negotiations were to kick in.
“The Ministry even undertook to remove the technical expert appointed as Employer's Representative and replace them with the Permanent Secretary, who made no secret of their lack of familiarity with the project.”
NDP’s reckless actions created emergence of Biwater
Previously, First District Representative, Hon. Andrew A. Fahie had stated that the reckless actions by the current National Democratic Party (NDP) administration was the reason why the Biwater deal emerged in the first place and why Government is now allegedly being threatened with a lawsuit by Global Water Associates.
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77 Responses to “Fmr. Premier Ralph T. O’Neal knew about ‘Global’ contract”
Now it's public knowledge that there's a big set of jockeying for power within the VIP. NDP destroyed the investment club? That's your new angle? I thought NDP were infact the Investment Club? Which is it? You need to stick to one line of argument. Regardless of what Fraser says and Ralph says, they were both a part of the same Cabinet and responsible for this debacle. I blame NDP for not putting out more information on the Global Water issue and for being 9u$$ies and not renewing OC contract and instead letting it go to court. They only did that because it would 'look bad' if they gave OC back the contract given that some of them were shareholders. NONSENSE!! Nobody elected 9u$$ies to run the country and NDp is now regretting that.
How can Fraser say NDP is acting like biwater doesn't exist when if you go up at Pari now, you will see that the construction of the plant is taking shape? Works haven't stopped, they're still working, which means the Government is involved somehow. The issue now is they want to get water through our mangroves at Pari and Govt. wants to approve it. It seems Fraser thinks that because Biwater has a contract Government is obligated to simply approve their requests. If Biwater is this big international reputable company, why the @#$% they couldn't tell that Pari had no water? OC checked there years ago which is why they end up with a plant at Bar Bay East. Our locals are smarter than Biwater? Seems so to me. More to come on this. NDP needs to get Audits done on ALL these things and publish each one let the chips fall where they may.
Answer those questions and you get the answer.
So you have no problem with our Government, meaning US, paying for Biwater electricity regardless of the cost? That's madness! Didn't they promise us some 'free' sewerage treatment plants as well? Turns out, that was a LIE! Why you harping on one side of the issue and not the other? It was a poor and onesided agreement that we signed and you know it. I'm not defending NDP here, I'm pointing out your bull$h!t! Both are to be blamed for this problem but you act is if king fraser and VIP could do no wrong. VIP ruled the country for 40yrs, NDP is now in their 5th year of being the Government, you do the math!
Then all the foolishness about how long VIP ruled and how long NDP ruled. Tell the NDP to live up to the terms of the Biwater Agreement, cause if the don't, you tink the Global $22 million is money? You will hear money then.
Just some friendly advice.
VIP remember that story was stated on the NDP site Platinum so do not fall for it Ralph and Fraser...leave it dey!
This is why we voted out these set of lying, under-minding, bad minded.......from running our country!!!!!!
VIP will never sit in the Admin Complex again!!!
This is why O'Neal will never retire because he cannot trust himself, Fahie or Fraser to lead VIP. Them man tagging up on O'Neal to throw him out!
O'Neal let Irene Penn take over! That is a woman with integrity, morals and who can't be bought!!
You're saying that we will lose our country to the white people if we let NDP get back in power, which colour people will we lose out country too if we let VIP get back in power ? If VIP had get back in power, the UK would of done take over this place.
Why you think they came to monitor the elections ? They heard the people's cry.
NDP is no GOD sent Gov't but they are 5 times better than VIP!
When HL Stoutt passed away, we lost the VIP and this country!
That is one of the questions I have to ask GOD when I reach Heaven, "Why he took HL Stoutt so soon" ?
A Government, only in 11 months and have already:
- Rebuild ESHS library from dirty dump room to comfortable state of the art library
- Introduce mandatory CXC exams for school leavers so that we can better measure our performances regionally and internationally
- Introduction of National Song and Dress - FIRST IN HISTORY!
- Introduction of raising/lowering of flags to instill a sense of national pride in the youth
- YUR program which assisted in many unemployed youth with needed skills and job opportunities
- Revamping the Techincal and Vocational Institute which is currently under construction
- Rebuilt Crafts Alive and getting rid of tent city
- Introduction of first ever Autism Center (note: It was started by VIP)
- Ground breaking for new modern home for the elderly
- Completion of phase 1 and reopening of Greenland field
- Completion of phases with respect to sewerage treatment
- Fixing disastrous retaining walls and roads that were damaged since 2010 (i.e. Ballast Bay, Carrot Bay, Country etc.)
- Accessed the CDB monies to address infrastructure damaged by storms years ago
- Negotiated the protocols to ensure that once we meet the requirements we can be on firm footing financially again
- Engaging the Cruise Industry once again for the first time in years to ensure that our people continue to benefit from this crucial piece of the pie
Many more that can be listed. These guys are working for the people and it shows. So you look at all they have done and are still trying to do and tell me they're not working for the people? You my friend are in denial!
Trust we the people "nonsense" come 2016 this country will never again end up in the hands of the NDP! The past 11 months is not the kind of governance the nation demands. I cannot help but laugh at this same ranting and raving you do from online news site to online news sites deman.
Go sit down with your marketing campaign with the same old, dull, tired, boring spin…the people will speak!
Which one of the projects that Nonsense named VIP completed ???
New ideas ???????
When a new idea drop, you all shutting it down and say finish the hospital, sewage etc.
We trying to finish them then you say where the new ideas ?????????
JUMP OVER A CLIFF PLEASE!!!
But "Virgin Gorda" you seem to be biased. You and everyone else know that NDP is doing a great job. Some of their decision might make you scratch your head, but they're doing their job. If you compare the performance of VIP in their last four years to eleven months that NDP has been in, there's a big difference! A good difference too. I'd elaborate on how it's a good difference but it's evident. You're either biased, in denial or both.
fool me twice, shame on you.
fool all the bvi, over and over again. the bvi deserves NDP BAM.
@ BREAKING NEWS; God! We will not have a NDP gov pass 2016 as we are sick of the special interest! If that happens we will turn out like Turks and Caicos? A UK takeover!!! You ought to be out of your mind breaking news so keep dreaming about who will see the admin complex..hope before your four years is up someone aint pull you out by your ball head for the $h!t you doing to people!
Oh shut the @#$ up with your nonsense. How many locals have lost their jobs since NDP took power a year ago? You and your backward Government had the place at a stand still, nobody wanted to invest. We already have new Trust Companies and Law Firms on Island since last elections and many more things to come. Look and learn how a country is run. Why would a political party treat the locals bad when they're the ones that voted them in, in the first place? You sound so stupid about "whites and expats taking over". They don't need Government for that, just idiots like you who are too small minded to benefit in their own country!!!!!!!!!!!
Global Water only now raising their head because they know they have their friends in office. That's why the question "WHO OWNS GLOBAL" needs to be answered.
What the he!! is wrong with my VIP..too much in fighting...i would have prefer in breading!!!