OC wins millions from Gov't, feels vindicated
However, OC’s appeal challenging the order of the High Court judge giving Government immediate possession of the plant was dismissed with the Appellant Court reaffirming Government’s ownership of the plant.
The water company, over the past three years, had been pursuing Government for debts supposedly owed to them, and the financial support to provide maintenance for the Baugher’s Bay Desalination Plant. The civil case was first heard in the Court of Appeal on September 30, 2011.
In a written judgment on Wednesday of this week, Justices Janice Pereira, Davidson Baptiste and Don Mitchell, Justice of Appeal (Ag) dismissed all Government's appeals, which therefore confirmed the decision of the Commercial Court to award Ocean Conversion approximately US$10M with regards to its receivables claim against Government in the original case.
Of this amount, US$5M has already been paid, leaving an outstanding amount of US$5M plus interest, due to OC. In addition to that, Government was ordered to pay OC’s legal fees in the HC matter and two thirds of Ocean Conversion's Appeal Court costs.
Furthermore, the Appellant Court found that the Commercial Court's order that OC could not receive compensation for the costs it incurred over the years in extending the plant beyond contractual specifications was overturned. The Court also directed that an inquiry be carried out to establish the value of the Baugher's Bay plant at the date when OC gave up delivery to Government, and from this value, the initial purchase price of $1.42 million was to be offset to arrive at the amount due to OC.
Speaking to this news agency this morning April 20, 2012, Harrigan stated, “We (OC) have been vindicated for what we have been pushing for the last few years...the judgment was a resounding success.”
Commenting on the company’s next step, OC President stated that it has only been two days, and neither the company nor Government has made a move. “But we hope soon...we will see how things go.”
Former Minister for Communications and Works and 3rd District Representative Hon. Julian Fraser RA, who had intimate knowledge of the negotiations, when contacted said it would be unfair to comment on the issue without reading the full judgment.
Ray George, the former Project Manager of the Baughers Bay plant, nor the Attorney General Office could be reached for a comment up to publication time.
However, one of OC’s staunch supporters Cromwell Smith is pleased that the company is finally getting paid for its service rendered to the community.
“It is sad to see that a local company who has given over 20 years had to be put through this process by its own Government,” he charged. Smith, a talk show host, also hopes that OC will be able to recoup the estimated $4.5M it spent to refurbish and upgrade the plant, albeit not in the contract it signed with Government, so that residents could have gotten quality service.“Government should not have denied the company that money...and I have the NDP would have the courage to repay them for that,” he added.
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