The Tribune

By TANEKA THOMPSON

Tribune News Editor

tmthompson@tribunemedia.net

FORMER Minister of Works Neko Grant called for police to investigate apparent “fraudulent acts” allegedly committed during the construction of the male dormitory at the Bahamas Agriculture and Marine Science Institute in North Andros.

Mr Grant said Minister of Works Philip “Brave” Davis “misled” the House of Assembly on February 25 – when he said the fire-damaged dorm had a lapsed insurance policy – and should now do the “honourable thing”.

His comments came shortly before opposition leader Dr Hubert Minnis said that the dorm’s contractor, Audley Hanna of Paradigm Construction, is not paying National Insurance Board (NIB) contributions for his employees.

Dr Minnis also said that in view of this, a compliance letter issued by NIB on the contractor’s behalf raised questions about malfeasance.

Both men spoke in the House after Mr Davis revealed that the contractor had never secured an insurance policy for the fire-damaged dorm even though one was required to execute the $2.6m contract. The dorm was destroyed in an arson attack on January 15.

This admission came two weeks after Mr Davis had initially told the House that the contractor had allowed the policy to lapse at the time of the fire, because he had failed to pay the annual insurance premium. He had said that the construction had over run its estimated completion date, and that the contractor had failed to extend the insurance.

Mr Grant said the conflicting statements from Mr Davis were not acceptable, especially considering that he is the deputy prime minister and a Queen’s Counsel.

“For him to have made the statement emphatically as he did, that the building was insured and that the insurance lapsed, and to come here this morning and (admit) that the building was never insured, it is obvious that he has misled this House,” Mr Grant said on a point of order.

The former minister of works also questioned how the contractor was granted stage payments from the Ministry of Works over the construction period without someone noticing the policy was not in place.

He said government procedures mandates that the all-risk insurance policy, along with a business licence and a National Insurance compliance letter had to be attached to every stage of payment.

“We heard this morning that some $2.5 million has been paid out, the procedure is that the project officer generates the originating request for payment. It is then quantified by a quantity surveyor, it is then signed off by the director of works, and the treasurer, by law, cannot draw a cheque unless this procedure has been followed. There have been many stage payments made from what we have heard this morning (but) we still would not have evidence of the insurance ever being taken out.

“If fraudulent acts have been committed, and it would appear that it has, I believe that it requires a police investigation. Secondly, since the member has misled this House, he should do the honourable thing. Mr Speaker, this is a sad day in the parliament in The Bahamas,” Mr Grant said.

Afterwards, Dr Minnis said his party had more concerns about the contractor.

“Our records would reflect that this same company, Paradigm, got a contract from the government in 2013 for $743 odd thousand, and they never kept the National Insurance payment for its staff. In fact, Mr Speaker, in September of 2013, only four members were paid for and immediately after that, only two members were paid for. We need to know how is it, that a (contractor) who did not pay National Insurance premiums for its workers, how is it that they could have received a compliance letter? And our records also reflect, again Mr Speaker, that in addition to that, he still has not paid National Insurance for staff members on this project, so the compliance letter needs to be investigated because there is some fraudulent activity going on in that department, Mr Speaker.”

However Mr Davis accused the opposition of raising “red herrings” and cautioned Mr Grant from speaking further.

“But for the act of an arsonist . . .that’s all I say, the issue of this insurance would never (have) arisen. But I also say Mr Speaker, the member (Mr Grant) ought to check to see what was occurring under his watch . . .all I am saying (is) bad habits, bad practices, they die hard.”

On the concerns that the contractor has not paid NIB for his employees, Mr Davis said his ministry relies on data from the agency. He added that the contractor might have hired sub-contractors, who would be responsible for paying NIB contributions for its employees.