The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Cabinet Minister yesterday admitted the Government had been “surprised” by Renew Bahamas’ decision to suspend its management of the New Providence landfill, with no decision made yet on whether the company will return.

Kenred Dorsett, minister of the environment and housing, told Tribune Business that he was awaiting legal advice from the Attorney General’s Office before determining the Government’s “next step” on the landfill.

He said it was “premature” to say whether Renew Bahamas will be allowed to return as the landfill operator/manager even if it wanted to, adding that he was seeking to arrange a meeting next week of all relevant parties - the company and government agencies - to determine the way forward.

Mr Dorsett also conceded that he was “disappointed” by Renew Bahamas’ failure to restart its landfill-based recycling operation, which had been shut down for several months following fire that damaged the baler.

And the Minister hit back at charges by Michael Cox, Renew Bahamas’ chief executive, that the Government had failed to properly engage with the company over the past two-and-a-half years to develop a strategic plan for the landfill.

Mr Dorsett said this was “far from the truth” and “incredibly disingenuous”, adding that there had been constant communications between the two sides, with his Facebook page featuring pictures of a meeting with Renew Bahamas in his office.

“Right now, the matter has been referred to the Office of the Attorney General,” the Minister told Tribune Business. “They are reviewing the matter, and I am awaiting their advice to determine the next step.

“Last week Tuesday, I got a text message saying they [Renew Bahamas] were suspending services and provided the reasons why. I was in Cabinet, and able to discuss the matter with colleagues then.

“A formal response was issued shortly thereafter, no later than Thursday last. In the wake of the hurricane, the Department of Environmental Health Services (DEHS) stepped in to provide additional facilities at the landfill, and indicated ti Renew it will take over operations, albeit for a period of time.”

Mr Dorsett’s office later issued a statement following his interview with Tribune Business, in which his ministry took “grave exception” to Mr Cox’s allegations that the Government had failed to properly support and engage with Renew Bahamas.

The statement also released some of the post-Matthew correspondence that has passed between the two sides, including Mr Cox’s October 11 message invoking the ‘force majeure’ clause in Renew Bahamas’ operating contract.

Mr Cox told Mr Dorsett that “Hurricane Matthew has restricted Renew Bahamas’ ability to perform its obligations under the contract”, due to factors that included “structural damage” to the landfill’s materials recycling facility (MRF) and buildings.

The Renew Bahamas also cited the continued absence of power and communications, including Internet; the absence of fuel supplies; overturned containers; and the closure of the Nassau Container Port, preventing further exports and revenue generation, as reasons for invoking ‘force majeure’.

Mr Cox also said just 25 per cent of Renew Bahamas’ staff were reporting for work, while the storm had also interrupted the supply of material for its newly-started metals recycling operation.

“Renew is unable to perform its operational duties at the site, and urgently requests the assistance of the DEHS in agreeing a practical solution during the interim,” Mr Cox wrote, according to the Ministry’s statement.

“We submit that in the interests of facilitating post-hurricane clean-up in New Providence, it is in the interests of the Government of the Bahamas to find a workable solution.”

The Ministry of the Environment and Housing’s permanent secretary responded the following day, referring to a conversation between Mr Cox and Mr Dorsett, in which the former allegedly said Renew Bahamas did not have the funds to hire contractors and fulfill its contractual obligations.

“I also refer to your verbal communication with Minister Kenred Dorsett, in which you indicated that Renew does not have the financial equity to engage contracts at the landfill site for it [Renew] to fulfil contractual obligations,” the permanent secretary wrote.

Pointing out that the DEHS was already doing Renew Bahamas’ job by disposing of Matthew-related waste, the letter added: “In light of all the challenges facing the New Providence landfill, the Ministry of the Environment and Housing recommends the full takeover of operations at the landfill by the DEHS,” This arrangement is to last at least until November 1, 2016.

“Many of the factors affecting Renew’s operations, and its performance under the contract, are related to management and administrative issues and are not attributable to Hurricane Matthew,” the Ministry said, pointing the finger of blame at the company. It is now awaiting the Attorney General’s Office’s advice over Renew Bahamas’ contract terms.

When asked by Tribune Business whether Renew Bahamas will be allowed to resume the landfill’s management, Mr Dorsett replied: “I think it’s premature for me to answer that at this point. The Office of the Attorney General is looking at the matter, so I will have a better appreciation of the options.

“I received a text telling me that they were going to suspend services within a 48-hour period so, yes, I was surprised by it.

“But we were in a national crisis at the time in the wake of Hurricane Matthew, and we knew the landfill could not be closed if we were to restore a sense of normalcy to New Providence.”

Mr Dorsett then vehemently rejected Mr Cox’s allegations about the Government’s ‘lack of engagement’ with Renew Bahamas, blasting: “I think he’s being incredibly disingenuous if that’s what he’s saying.

“That’s far from the truth, considering they’ve met with the Office of the Prime Minister, DEHS and communications were ongoing. I’m not entirely sure where that’s going. Maybe in the emotion of it all he misspoke. The facts speak for themselves.”

Still, Mr Dorsett said he wanted to meet with Renew Bahamas and all parties involved with the New Providence landfill early next week, when the rush to dispose of Matthew-related debris should have slowed slightly.

“By next week we will be in a position to figure out a way forward,” the Minister told Tribune Business. “I want to sit at the table with all parties in the near future and make a determination as to what’s best in the national interest.

“Obviously I am very disappointed to the extent that the materials recycling facility, which was damaged in the fire a few months ago, has never become fully operational.

“We’ve been at the table with Renew Bahamas for several months, getting a better appreciation of their operations and challenges,” he added.

“In the wake of the hurricane, it was clear that Renew Bahamas did not have the capacity to deal with the landfill.” The Ministry of Environment also pointed out that there had been no fuel shortage, as alleged by Renew.

Mr Cox told Tribune Business that the absence of power and communications at the landfill had made it an unsafe operating environment, with gun shots being fired at security guards and all tyres on his vehicle being slashed. Equipment vital to the recycling operation has also been stolen.

Renew Bahamas’ pull-out, even if it is on a temporary basis, creates another potential headache and embarrassment for the Christie administration.

The New Providence landfill has become an even more important public asset in Matthew’s wake, given the vast amount of extra construction and green waste that will need to be disposed of in the storm’s aftermath.

The Christie administration now finds itself back at ‘square one’ with the facility, as the landfill has been returned to its pre-Renew Bahamas status - under DEHS control, a situation that both current and former governments have regarded as unsatisfactory.

It also represents something of an embarrassment for the Christie administration, given how highly it touted the landfill’s management outsourcing to Renew Bahamas, suggesting it would save taxpayers an annual multi-million dollar sum. It now appears that the Treasury will assume this burden again, at least for the short-term.

Mr Dorsett, though, tried to strike a positive note, pointing to the ongoing negotiations with a Bahamian group for green/organic waste recycling, and the completion of studies for the landfill’s remediation.

“We still have great hopes as to the future,” he told Tribune Business. “There’s no secret that there’s an abundance of green waste, and there have been discussions - with Renew Bahamas’ knowledge - with a large group of Bahamians involved in the waste management business on that.”

Renew Bahamas had earlier this year sought to engage the Government in negotiations over revisions to its five-year management contract, having argued that its business model was unsustainable and had produced “millions of dollars” in losses.

In response, the Christie administration appointed the Kikivarakis & Co accounting firm to analyse Renew Bahamas’ financials, and determine whether its request was justified.

However, there were indications then that the Government was seeking a ‘Plan B’ option as an alternative to Renew Bahamas, as it had approached a Bahamian consortium over landfill-related proposals.

The Waste Resources Development Group (WRDG)is understood to have expanded beyond its original four members - Wastenot, Bahamas Waste, Impac and United Sanitation - to now include a total of 10 fully Bahamian-owned companies.