Got TIPS or BREAKING NEWS? Please call 1-284-442-8000 or Email ALL news to:newsvino@outlook.com; ads call 1-284-440-6666

NDP Gov’t costing taxpayers Billions; Global Water suit still outstanding!

-Appeal pending before Privy Council; Delta Petroleum claim still to come
Before the NDP left office in 2007, Global Water—a foreign company with local interest—claimed that the Dr Smith led Administration had violated and breached both contracts and then took the government to court. Photo: VINO/File
In 2006 when the NDP first took office [2003-2007], they signed two contracts with Global Water. The first contract was for a $2.68M no-bid deal for the company to design, build and install a sewerage treatment plant in Paraquita Bay on the main island of Tortola. The wastewater plant was to process 250,000 gallons of sewage a day. Photo: Internet Source
In 2006 when the NDP first took office [2003-2007], they signed two contracts with Global Water. The first contract was for a $2.68M no-bid deal for the company to design, build and install a sewerage treatment plant in Paraquita Bay on the main island of Tortola. The wastewater plant was to process 250,000 gallons of sewage a day. Photo: Internet Source
A three-person arbitration panel ruled that Global Water should only be compensated for the first contract for $2.68M. However, Global Water under the NDP appealed that ruling and in 2016—in the Commercial Court—Justice Barry Leon ruled that the arbitration panel erred when it decided to only award damages for just one of the two contracts signed. Photo: GIS/File
A three-person arbitration panel ruled that Global Water should only be compensated for the first contract for $2.68M. However, Global Water under the NDP appealed that ruling and in 2016—in the Commercial Court—Justice Barry Leon ruled that the arbitration panel erred when it decided to only award damages for just one of the two contracts signed. Photo: GIS/File
ROAD TOWN, Tortola, VI – Outside of several allegations of corruption, poor spending priorities and no transparency—as alleged by former Governor, John S. Duncan OBE and former Minister for Health and Social Development, Hon Ronnie W. Skelton (AL)—the current National Democratic Party (NDP 1) is costing taxpayers billions in bad decisions.

Breach of Contract 

In 2006 when the NDP first took office [2003-2007], they signed two contracts with Global Water. The first contract was for a $2.68M no-bid deal for the company to design, build and install a sewerage treatment plant in Paraquita Bay on the main island of Tortola. The wastewater plant was to process 250,000 gallons of sewage a day.

The other contract, which many said had a conflict of interest issue, was a 12 year operating agreement which would have paid Global Water $20 per thousand galls for treated waste.

However, before the NDP left office in 2007, Global Water—a foreign company with local interest—claimed that the Dr Smith led Administration had violated and breached both contracts and then took the government to court.

Millions lost in Lawsuit 

According to court documents obtained by our news centre, Global Water in the claim wanted damages for some $22M for the breach of the two contracts, their Attorneys came from the Law Firm of O’Neal Webster.

In 2011, the NDP came back to power and in 2014 the matter went to a three-person arbitration panel that ruled, Global Water should only be compensated on the first contract for $2.68M.

However, Global Water under the NDP appealed that ruling and in 2016—in the Commercial Court—Justice Barry Leon ruled that the arbitration panel erred when it decided to only award damages for just one of the two contracts signed. Mr Leon noted both contracts were breached.

Government via the Attorney General’s Chambers appealed that decision of the Judge and won in 2018 at the OECS Court of Appeal. Now Global Water has filed an appeal to the Privy Council, which is the British Overseas Territory’s final court.

Taxpayers taking a hit

Many legal observers believe the VI Government will lose at the Privy Council, costing taxpayers Millions and Millions more, just like the loss to Delta Petroleum (Caribbean) Ltd.

Meanwhile, the Delta Petroleum claim is still pending after the same NDP regime lost at the Privy Council over an access dispute. Some say Delta’s claim could be well over 50 Million dollars.

According to critics of the NDP regime, the Government has cost the treasury now billions because of poor decision making and poor legal representation over the years 2011-2019.

11 Responses to “NDP Gov’t costing taxpayers Billions; Global Water suit still outstanding!”

  • Political Observer (PO) (22/01/2019, 18:03) Like (16) Dislike (0) Reply
    A legally binding contract includes these requirements a)offer, b)a acceptance , c)consideration.......etc. A breach of a contract often results in litigation. Does not the BVI government have a legal department that should be protecting taxpayers? Is not the government following the advice of the Legal Dept.? And if so why are the taxpayers on the hook for $MMMM?
    • Me (22/01/2019, 21:26) Like (3) Dislike (1) Reply
      @ Political Observer Very good questions there. What is really going on? Is advice being given and not taken or is it poor representation? We want to know!
  • me again (22/01/2019, 21:43) Like (6) Dislike (1) Reply
    @ PO this happening because we put a set of irresponsible people in power AND power Corrupts
    We did not hold them responsible so they allowed “greed” to take over

    But the local proverb goes “ every rope got an end “ and “if you give he enough rope he will hang he self”
    Boy “ if I hadda kno”
  • hello (22/01/2019, 21:51) Like (12) Dislike (7) Reply
    Please people , please. you are hearing it from the horse's mouth. Ronnie was there . So he is basically admitting. so guys are you still gonna vote for NDP1 or NDP2? Please BVI wake up!!!!!! Please BVI wake up!!!!
  • hell (23/01/2019, 09:15) Like (3) Dislike (2) Reply
    I will be a cold day in Hell of any of the NDP return to power
  • me (23/01/2019, 09:39) Like (6) Dislike (2) Reply
    The NDP really kill this country
  • Karrass (23/01/2019, 10:40) Like (1) Dislike (0) Reply
    Never use words in a contract which can not be measured. NEG101. The Minister and the executives who negotiated these contracts should have to pay a percentage of the damage. We must learn by our mistakes.
  • wack (23/01/2019, 11:34) Like (1) Dislike (1) Reply
    This is the leader they want to name our hospital after. A man who squandered the money .He must be made to pay back the 7.2mil. from his pocket. The bringer of the bill do not seem to know the history. The hospital was brought to its lowest under his watch. That is why the NDP privatize our only hospital to save face. Who is running the said premier medical practice? One of the best doctors who was at Peebles. The favors he did in his private practice has nothing to do with Peebles Hospital. Do not erode our history for a vote at the ballot box.
  • 911 (23/01/2019, 21:20) Like (0) Dislike (0) Reply
    Another sad DAY
  • MyMy (24/01/2019, 15:25) Like (0) Dislike (0) Reply
    Every government in the BVI does the same bullshit. So don't play the blame game because it's election time
  • guy hill (25/01/2019, 04:16) Like (1) Dislike (0) Reply
    This government was in power/control for twelve of the last Sixteen years. So where does blame and responsibility or lack there of lands or goes?


Create a comment


Create a comment

Disclaimer: Virgin Islands News Online (VINO) welcomes your thoughts, feedback, views, bloggs and opinions. However, by posting a blogg you are agreeing to post comments or bloggs that are relevant to the topic, and that are not defamatory, liable, obscene, racist, abusive, sexist, anti-Semitic, threatening, hateful or an invasion of privacy. Violators may be excluded permanently from making contributions. Please view our declaimer above this article. We thank you in advance for complying with VINO's policy.

Weather


Follow Us On

Disclaimer: All comments posted on Virgin Islands News Online (VINO) are the sole views and opinions of the commentators and or bloggers and do not in anyway represent the views and opinions of the Board of Directors, Management and Staff of Virgin Islands News Online and its parent company.