By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
Stunned Bahamian politicians reacted with disbelief yesterday after it was revealed that a French energy company paid more than $300,000 in bribes to win a Bahamas Electricity Corporation (BEC) contract.
Yesterday’s $772 million plea agreement, struck between Alstom (formerly ABB) and the US Justice Department, reveals how the company covertly paid-off an unnamed Bahamian government “official” to win a bid to supply BEC with a generation unit more than a decade ago.
The events, detailed by court documents seen by Tribune Business, mostly took place between 1999 and 2001, when the first Ingraham administration was in its second term in office.
The Alstom plea bargain reveals how the French energy company hid payments to Bahamian officials, routing them through an unidentified American consultant, who was “a close personal friend” of one person able to “influence” the awarding of BEC contracts.
None of those involved in the scheme are named, with the Bahamian bribe-taker referred to as ‘Official 8’, and the consultant as ‘Consultant I’.
The documents reveal that Alstom paid the consultant some $650,000, with around half of that passed on to Bahamian ‘Official 8’ via six separate cheque payments that were often labelled as ‘commissions’.
The plea agreement gives the Bahamian people an insight into how corruption within government harms their interests, given that the diesel generators supplied by Alstom (then known as ABB) caused BEC numerous problems and extra costs.
Bradley Roberts, current PLP chairman and former minister of works with responsibility for BEC, raised concerns about the Alstom contract while in office in 2003.
During an address to Parliament, Mr Roberts disclosed that the then-BEC Board, chaired by J Barrie Farrington, on November 13, 2000, recommended that the contract to supply slow speed diesel generator DA 12 be handed to South Korean firm Hanjung, not ABB (as Alstom was then known).
This decision was confirmed at another Board meeting on November 29, 2000, but the unanimous verdict in favour of Hanjung was overturned by the then-Ingraham Cabinet, and the contract awarded to ABB/Alstom.
That decision resulted in the resignation of the late Vincent D’Aguilar as BEC’s vice-chairman, Tribune Business understands, because he was opposed to the rejection of the Board’s nomination. It is understood that other directors also considered resigning at that time.
“My premonition was correct. Wow, wow, wow, wow,” Mr Roberts said, when informed of the Alstom plea agreement by Tribune Business.
“My premonition at the time was correct, my instincts at the time were correct. It didn’t smell right, it didn’t look right and it didn’t taste right.
“That generator has caused BEC all kinds of damn problems, and it’s still going on now. Interesting.”
Mr Roberts, in his 2003 address to Parliament, highlighted several problems with Alstom diesel generator projects in both the Bahamas and elsewhere in the Caribbean.
He also detailed the resignation by Mr D’Aguilar, and suggested that something was not right about the decision to award the deal to ABB/Alstom.
“The Bahamian people need to ascertain by some legal mechanism of inquiry as to the bona-fide reason why a decision was taken to purchase D/A12 generator from the same supplier, after the turbulent, expensive and poor performance of D/A11 generator, which caused much suffering for the people of New Providence and Paradise Island,” Mr Roberts said at the time.
He added that the delay in commissioning Alstom’s DA 12 generator resulted in BEC’s customers (the Bahamian people) incurring an extra $14 million in fuel costs.
Frank Watson, former deputy prime minister, who had responsibility for BEC at the time of the events in the Alstom plea bargain, said he would be “shocked” if ‘Official 8’ turned out to be a member of the Corporation’s then-Board because it contained outstanding persons.
Emphasising that Tribune Business’s call was the first he had heard of the bribery claims, Mr Watson said there was no difference in price between the Hanjung and ABB bids.
With ABB a known commodity because it had already supplied BEC with generation units, Mr Watson added that the bids were sent to the Inter-American Development Bank (IDB) for an evaluation.
The bank, he said, was “satisfied” that ABB should win the bid.
“I am very surprised,” Mr Watson told Tribune Business of the revelations in Alstom’s plea agreement. “I didn’t hear that at the time. Some of these things are under cover. I don’t recall there was any suspicion at the time of any under hand dealing.
“I would be surprised if Board members were bought. That would shock me. Whether other people in BEC’s administration did some thing, I don’t know, but I’d be shocked, very surprised if it was the Board, as we had real quality people on it.”
There is no suggestion that ‘Official 8’ was a BEC Board member, and their identity remains unclear. The only clue to his/her identity comes from the disclosure, via a July 4, 2000, e-mail from the consultant that Official 8 “has been appointed to oversee the opening of the tender by the chairman of the Board”.
Mr Farrington declined to comment when contacted by Tribune Business yesterday, as he had not seen the Alstom plea agreement and associated documents.
The documents, filed in the US District Court for Connecticut, reveal: “Alstom disguised its books and records payments to Bahamian officials to obtain or retain business in connection with the power projects for Alstom and its subsidiaries.
“Alstom retained Consultant I who, as certain Alstom employees knew, was a close personal friend of Official 8. Consultant I’s primary purpose was not to provide legitimate consulting services to Alstom and its subsidiaries, but was instead to pay bribes to Official 8, who had the ability to influence the award of the power contracts.”
The plea agreement revealed that Consultant I had no knowledge of, or expertise in, the energy industry. Instead, they sold furniture and leather products, and exported chemicals and spare parts.
“Alstom and its subsidiaries were ultimately awarded the power projects by BEC,” the court documents confirmed, with payments routed via Consultant I to Official 8, and disguised as consulting fees and commission, “in exchange for his assistance in awarding the projects” to the company.
The first $74,229 payment to Official 8 was made on June 9, 2000, some seven weeks after Consultant I asked to set up a meeting involving the Bahamian official and Alstom personnel.
Further e-mails from summer 200 disclosed that Official 8 was attempting to speak with the Department of Immigration, but he was “not going to move forward” until he and Consultant I received some kind of contract with Alstom.
This demand was accepted by Alstom within 24 hours. The energy company, though, was by early 2001 getting nervous over its prospects for success, with Consultant I telling them: “I have Official 8 going down to BEC to talk with a high-level official to try to get a feel for what’s going on.”
The contract in question was clearly the DA 12 diesel generator, as the documents note that Alstom received its Letter of Acceptance on March 1, 2001 - just one day after its bid was approved by the then-Ingraham Cabinet.
A further five cheques were issued to Bahamian Official 8 between May 15, 2001, and February 1, 2013, in the amounts of $56,000, $42,000, $42,000, $40,000 and $27,000.
It now remains to be seen whether the Government will launch an investigation of its own into the ABB/Alstom deal, and seek to prosecute those involved or recovery the bribery proceeds.
Comments
BoopaDoop 9 years, 10 months ago
Great. Some buffoon accepted a bribe from a company that could not deliver a quality product. I would LOVE to know who accepted the bribe in 2001. I will have the popcorn ready for this one!!!
GrassRoot 9 years, 10 months ago
actually this is even better, you get paid from a failing contestant. Am sure he collected from several bidders.
concernedcitizen 9 years, 10 months ago
I put it to you ,it would be hard to get forty members of parliment w/ integrity , or customs officers ,or police men , when single mother of 6 for 4 dead beat dads and god as the Nations numbers handicapper ,.now let me see i dreamed about twins thats 2 , we lose 20% of our Americian tourist to Cuba and we are eating each other
ohdrap4 9 years, 10 months ago
rumor has it the feller is no longer active in politics and did not run in 2007
happyfly 9 years, 10 months ago
You got that right ohd. Bless his sole VDeA. Your boy went to the dark side and it all went down hill from there
TalRussell 9 years, 10 months ago
Comrades how could you not notice whenever corruption is being squally pointed directly in face of members of the red shirts regime, it's never splashed across front page as headline story? I guess it is still better than Tribune burying in classified section.
GrassRoot 9 years, 10 months ago
Corruption does not have a color, it is non-political, however it is anti-business, anti-society and anti-economy, anti-future. You can pick any color in this country at any given time, you will always be right with your statement - almost every official is corrupt in this country. Selling "steak out tickets" at cashier at the Motor Vehicle Department is a form of corruption. Accepting invitations to events, games is a form of corruption, being wined and dined is a form of corruption. The police officer asking for a personal donation "to support his gas expenses" for issuing the criminal record is corruption. Corruption is bad for the people Tal. Its spoils them, it gives them unearned and undeserved benefits for just being in a position of power of whatever level and for doing nothing other than what they are supposed to do in the first place being paid to do by The People. Corruption needs to be brought to daylight, sun is the best disinfectant. Corruption is the real culprit in this beautiful country.
realfreethinker 9 years, 10 months ago
You are so right. Tal just seem to be stuck in color,rather than seeing the shit for what it is " corruption" plain and simple. I hope Perry them investigate,but i wont hole out hope these guys love to protect each other
SP 9 years, 10 months ago
.............................. Exactly My Sentiments As Well ....................................
If this story directly implicated the PLP, Tribune would have it boldly splashed across the front page as the lead story with follow up stories for at least a full week!
ThisIsOurs 9 years, 10 months ago
The paper has its biases, this is a page-1 worthy story. but to be fair when I bought the paper today, the first thing I noticed was "bribe" in the header section of the front page.
GrassRoot 9 years, 10 months ago
"stunned", "disbelief" are not appropriate words to use in an article describing the bribeability of a Bahamian official. Please replace with "Of course", "As usual", "only that much?". If that is not corruption, what is? Am sure, the AG will go on her deserved Christmas vacation.
ThisIsOurs 9 years, 10 months ago
LOL so true. "What's the fuss about, it's only 300,000", oh forgot, "give them a second chance"
SP 9 years, 10 months ago
.. FBI Exposes PLP And FNM Use Of "Consultants" To Facilitate Bribery And Corruption ..
http://www.topix.com/forum/world/the-ba…
This is the main reason our country is in a mess............. PIRATES AT THE HELM !
.............. Mr. Greenslade..........Do your job and send these BASTARDS TO JAIL ..........
GrassRoot 9 years, 10 months ago
As a public official in this country combined with the Westminster system, you always have to act with the understanding that one day, you may need a job outside the government. So no one is burning bridges here.
SP 9 years, 10 months ago
............................................ Birds Of A Feather Flock Together ...........................................
Now we clearly understand how former FNM Minister Of Tourism was allowed to abscond with $5M from the peoples Treasury through his shell company and fake "consultants".
The remaining unanswered question is why haven't big mouth Bradley Roberts and the PLP gone after the stolen money?
............ This doesn't smell right, it doesn’t look right and it doesn't taste right .............
TalRussell 9 years, 10 months ago
Comrades how could you not notice whenever corruption is being squarely pointed directly in face of members of the red shirts regime, it's never splashed across front page as the headline news story of the day? I guess it is still better than Tribune burying in classified section. Can't wait for the super hero corruption fighting rejected former red party chairman Daron address this red hot potato? Now, that PopPa Hubert has once again resurfaced as media friendly, we should be hearing directly from da former red PM PopPa - real soon? Why not, PLP Minister Ryan didn't even have be accused pocketing under da table - even one red penny - much less pocketing a whopping $300,000 bribe, to motivate PopPa to surface from Cooper's Town to question his integrity. Some way to have paid your respect for a former member House, all stretched out out upstairs in da House.of Assembly. PopPa since ya mouth is talking, talk this revealing court evidence.
http://tribune242.com/users/photos/2014…
IslandTransPlant 9 years, 10 months ago
Y is this just coming to light the Bahamian government is a bunch of bum Ass mother fathers they are not doing anything about the crime on the island that is like Cancer, because there to busy taking bribes I was one of the lucky ones my moms bought me my brother & sister to America but I still have lots of family there, right now Nassau is more dangers than Afghanistan and all the so call politician are stuffing there pockets when I first came to America I was so proud to tell others that I was from the Bahamas now am so a shame to even say that am from there all these young criminals are a product of drug addicted mothers & fathers from the 80 & 90's its to bad I have to say this but as far as the criminals go kill them all and let god sort them out.
Happy Holidays...
Well_mudda_take_sic 9 years, 10 months ago
Look no further than Frank Watson!
BoopaDoop 9 years, 10 months ago
Money too sweet to turn down.
ThisIsOurs 9 years, 10 months ago
Wow, I wonder how the sitting members took it when the pope delivered his Christmas message to them
Francis issued a blistering indictment of the Vatican bureaucracy Monday, accusing the...of using their ...careers to grab power and wealth, of living "hypocritical" double lives and forgetting that they're supposed to be ...
Francis urged the ....to use the Christmas season to repent ...
Francis had some zingers: ....How some suffer from "spiritual Alzheimer's," forgetting what drew them to the ...
But a year into his reform agenda, Francis seemed even more emboldened to make clear to the ... that superficial displays of change aren't what he is looking for.
"This is a speech without historic precedent," church historian Alberto Melloni, a contributor to Italian daily Corriere della Sera, said in a telephone interview. "If the pope uses this tone, it's because he knows it's necessary."
Melloni noted that until Francis was elected, the Vatican bureaucracy largely answered to no one, saying "an entire generation of the Curia ran it as if they were pope." St. John Paul II was too busy travelling the world, and later too sick, to pay attention to administrative details, and Benedict left the minutiae of running a government to his deputy, later determined to have been PART OF THE PROBLEM.
The Rev. Robert Wister, a church historian at Seton Hall University, said Francis was essentially asking the Curia to undergo an examination of conscience, asking them to reflect on how they had sinned before God before going to confession.
"Perhaps he believes that only a severe rebuke can help turn things around," he said.
Francis started off his list with the "ailment of feeling immortal, immune or even indispensable."
Then one by one he went on: Being rivals and boasting. Wanting to accumulate things. Having a "hardened heart." Wooing superiors for personal gain. Having a "funereal face" and being too "rigid, tough and arrogant," especially toward underlings ...
Some critiques could have been seen as worthy of praise: working too hard and planning too much ahead.
Sscreeeeeccch, hold up, handbrake on! "working too hard"? "Planning too far ahead"??? This speech wasn't directed at our government...wow, coulda fooled me...
concernedcitizen 9 years, 10 months ago
This new Pope is cool ,,,
ThisIsOurs 9 years, 10 months ago
There is no suggestion that ‘Official 8’ was a BEC Board member...hmmm this is true, I wonder why Frank Watson pointed a finger in that direction...puzzling.
Where is our Elliot Spitzer? These breeches are open enough to have been discovered by one of our own and the abnormalities are probably (correction, STILL) happening today. Fourteen years to this revelation, caution to all thieving politicians. Who paid those gaming consultants? And how much did they get paid?
I wonder if an international court will grab up any of these crooks for crimes against their people...
Publius 9 years, 10 months ago
The court documents say Official 8 is a board member, not that the Tribune actually read the documents so it seems
ThisIsOurs 9 years, 10 months ago
FW? Curiouser...a single board member influenced the decision of cabinet??? Curiouser and curiouser the decision went against the entire board?? This goes much deeper than one board member of that I'm certain.
happyfly 9 years, 10 months ago
Hopefully one day the sweet, honest and hardworking people of this wee country will figure out that ALL the public corporations are easy pickings for these money grabbing politicians.
crabman 9 years, 10 months ago
God, I love this country, it don't get any better that in the Bahamas, this is some funny sh*t
SP 9 years, 10 months ago
It's gonna get a whole lot funnier around here as Uncle Sam tightens the noose and continue it's move to expose corruption in high places.
40 years of all out blatant corruption and not one politician went to jail while America, Canada, Japan, China and other countries are sending politicians to jail almost daily?
Perry Ingraham and Hubert Christie WILL BE EXPSOED !!!!!!!!
Publius 9 years, 10 months ago
The Tribune is beyond worthless. The court documents explicitly say that Official 8 was a BOARD MEMBER OF BEC. Guess the Tribune did not read the court documents as usual? The documents also indicate that Official 8 is a man.
ThisIsOurs 9 years, 10 months ago
"A man"?!?!?? Well that narrows it down:) (seriously we don't have many of them in this country, and I'm talking about males who are honest, faithful to spouses, don't have a million children with fairly random women and live up to their responsibilities).
If you are right and the court documents do say official 8 was a board member, yes, I agree, the Tribune is beyond worthless. But do I believe ONE board member was the sole recipient of these bribes, overruled the chairman J BARRY FARRINGTON AND the ENTIRE board to persuade the MINISTER FRANK WATSON to present a document to cabinet in favour of a losing bid? I find that very very very very hard to believe.
Publius 9 years, 10 months ago
I am not suggesting that only one person may have received money. My statement is confined to the Tribune's claim that the documents do not say that Official 8 is a Board member. That is untrue. The indictment states twice that Official 8 was a BEC Board member. I also pointed out that Official 8 is a man because there were women on the Board, so I pointed out the distinction from that standpoint.
concernedcitizen 9 years, 10 months ago
Think of the money being pushed around w/ this new bidding to produce power ,,I think we are hard pressed to find 40 honest members of Parliment in our country ,,and even when caught nothing happens
Publius 9 years, 10 months ago
And the payments to Official 8 ended in 2003, not 2013 as the Tribune erroneously states in its second to last paragraph. The Tribune is a bloody wreck. And why didn't the Tribune ask Watson why he and his government overruled the Board? He was the Minister. Why interview him but not ask him that obvious question?
ThisIsOurs 9 years, 10 months ago
I agree! This goes further than one board member. The Trubune drops the ball quite often on their stories, for the most part the majority are straight dictation, whatever the interviewee says is reported without question.
ThisIsOurs 9 years, 10 months ago
I used to think these boards were just campaign party bags for supporters but now I see that strategic nonsense appointments could do a lot to enrich scummy politicians.
And consultants, my God, apparently the road to bribery heaven. PGC hires a million consultants for everything, pays them exorbitant fees. Look at those gaming consultants who gave PGC their final report on a ~piece of used toilet tissue paper...and he accepted it.!!..wow...that was really really REALLY strange
concernedcitizen 9 years, 10 months ago
They hire a lot of consultants,foreign , to get money out of the treasury and into foreign accounts for themselves and other ,they are just paid funnels the report is just fluff written from wikkipedia
Greentea 9 years, 10 months ago
I hope that person is exposed so we can see who among us is willing to sell his people for 30 pieces of silver- 300gs for him and whoever else has cost the bahamian people uncalculated millions! his azz needs to go straight to JAIL after being spat upon and stoned - though not to death in Rawson square. Expose these bastards no matter the political stripe- maybe the people need to go to the international courts since the elite criminal class seem to love cloaking the thieves and treasonous men and women that lie in wait among us disguised as reputable people. I am so sick of this BS. this is why this country is where it is today and not where it should be after fifty years of prosperity. my grandfather always told me that when a decision doesn't make any sense corruption is present. I have no doubt that both parties will have much to answer for.
Well_mudda_take_sic 9 years, 10 months ago
Too many of you cannot think things through. The Board member at the time could only have served as the bag man for Frank Watson!
pablojay 9 years, 10 months ago
Internationally is should be ,but nationally it isn't . REMEMBER WE HAD A LATE DEMI-GOD ACCEPT $750,000 TO HELP BUILD HIS MANSION FROM A WHITE MAN AT THE GRAND BAHAMA PORT AUTHORITY AND THAT WAS NO BIG DEAL !!!
Alex_Charles 9 years, 10 months ago
The minister's assets should be seized, all accounts frozen and face trial with possibility of 25 years in prison or life for treason and corruption.
asiseeit 9 years, 10 months ago
Uncle Sam would be wise to expose the corruption unless he is content to have another FAILED nation on his doorstep! NAME THE NAMES!
Well_mudda_take_sic 9 years, 10 months ago
J. Barrie Farrington is a well known Uncle Tom who has spent his entire career in the hotel industry shafting the Bahamian people, much like Ed Fields and Robert "Sandy" Sands. His outrage over the recently disclosed bribery incident should have been exceeded by his outrage many years ago when the decision of the BEC Board that he chaired was over ridden by Frank Watson. But Barrie Farrington was only too content back then to remain silent, even though he must have known full well that money was changing hands at a "higher level" to over ride the decision of the BEC Board he chaired. To put it politely, Barrie has only himself to blame for the "silent" duplicitous role that he has ended up playing in the BEC bribery incident more than a decade ago that has since cost all Bahamians undue hardship in the exorbitant levels of their light bills received from BEC. Farrington should hang his head in shame and should himself be subject to a full blown investigation for not having spoken up at the time the decision of the BEC Board that he chaired was over ridden. QED!
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