The Tribune

By KHRISNA RUSSELL

Tribune Chief Reporter

krussell@tribunemedia.net

WATER and Sewerage Corporation Executive chairman Adrian Gibson has denied accusations that he facilitated the awarding of no bid contracts worth hundreds of thousands of dollars to a company alleged to be owned by people he knew.

The “false allegations,” Mr Gibson said, were the sad reality of “silly season” and “mudslinging” that have become features of Bahamian politics.

Both WSC General Manager Elwood Donaldson and Mr Gibson were forced to answer to the claims after documents purporting to support the allegations circulated on social media showing records of numerous payments to a company named Elite Maintenance, said to be owned by two women known to the chairman – one of them a lawyer.

The documents were also leaked to this newspaper.

Mr Gibson said he had no beneficial interest or any other interest in the company.

The documents purported to show payments made to the company between November 2018 to January 2021. The largest of these was $263,206 on January 7, 2021. Another large payment of $131,601.12 was received by the company on July 7, 2020. There was also a $15,600 payment in November of 2018 along with numerous other payments from then to the early part of this year.

However, yesterday, Mr Gibson responded saying nothing untoward had taken place, adding this lawyer had been engaged by the company to act on its behalf.

He further insisted that the maintenance services agreement between the water provider and the company went through the corporation’s normal contracting process. Ultimately the contract went to the company with the lowest bid.

This was corroborated by Mr Donaldson in a separate statement. He said the information in the public domain has been completely misrepresented and laden with “absolute lies” as the bids for painting, repair and upgrading WSC water tanks, ranged from in excess of $1m per tank on down. The contracts went through normal channels, he said.

In a two-page statement yesterday, Mr Gibson said: “A few years ago, WSC issued cleaning memorandums for the provision of yard cleaning and ground maintenance services to a number of vendors. These memos were issued to clean various sites and operational compounds.

“The agreements also called for the monthly maintenance of these sites over a particular period. Notably, more than a dozen vendors received such memos. Given that WSC set the rates for cleaning/maintenance (and the same has been done for many years prior to my tenure), interested vendors could either accept offers for the provision of yard cleaning and ground maintenance services or reject the same.”

A broad swath of vendors were considered, Mr Gibson said.

WSC awarded a contract to a company whose principals engaged the attorney in question to provide corporate services and, pursuant to Bahamian law, to act as subscribers/nominee shareholders to form the company as is legally required, The Tribune was told.

“I am advised that sometime after the formation of the said company, the shares were distributed to the beneficial owners as directed. I am advised that while they were in the process of formalising their corporate affairs and even after she was legally authorised to act on their behalf.”

Mr Gibson said the attorney did not solicit any contract on behalf of the company. The attorney, he said, was engaged by private individuals and it was upon that basis that the corporation interacted with her.

He continued: “I am further advised that - having legal authority to represent her clients - the attorney was authorised to sign on their behalf. I have been advised that the attorney – at a later juncture – issued correspondence to the corporation’s general manager, advising that she was no longer authorised to act on behalf of the company as agent and requested an amendment of WSC’s records to reflect the same. A subsequent correspondence was received from the company.

“At a later date, the company in question submitted a bid as part of the corporation’s normal contracting process.

“That bid went through the internal procedures put in place and was found to be among the three lowest who were ultimately given work. At the time of that engagement, I am advised that the attorney was no longer involved with the company in any capacity,” he said.

“As far as I am aware, the attorney operated in a legal and professional capacity. I cannot speak to the extent of that capacity, nor do I have any other information about the affairs of a private company. I can only speak to the corporation’s policy, which does not restrict any vendor’s discretion to choose who they wish to engage to carry out their affairs.”

Mr Gibson further contended that WSC has entered into various contracts/letters of acceptance/memos with many companies during his tenure – of all political stripes; with men and women; for works from construction to cleaning to engineering to pipe works to repairs, etcetera.

Each of those companies to his knowledge – held to the same rigorous standards, the chairman said.

He also took exception with the dissemination of a police report containing his bank account information.

Mr Gibson said the police report was initiated because of what he viewed as inappropriate contact from a contractor.

“It is out of that effort for transparency and clarity that the lies, innuendos, doctored documents and half-truths are now appearing on social media.

“Sometime in 2020, I signed a police report about a matter concerning a rogue WSC contractor. . .Prior to the issuance of tender for two Caribbean Development Bank projects, an over zealous and rogue contractor – who was interested in those contracts – deposited funds onto a shared bank account. The funds were deposited in December 2018 – on the same day that the tenders were published.

“I immediately reported it to the bank and to the police. I requested that the bank immediately remove the said funds from the account, which they did and, upon their internal investigation, the bank issued a letter of apology to me – which I still have. The contractor was subsequently charged and the matter remains before the courts.

“The leaked, falsified and misidentified documents and information disseminated on social media are attacking me and private citizens. It is disgusting that politics has sunken to this level. However, I am undeterred in my pursuit of a second term of service to my constituents so that I can continue to advocate on their behalf,” he said.

For his part WSC’s General Manager Elwood Donaldson said an investigation would be launched into how sensitive and confidential information ended up in the public domain.

Mr Donaldson said he was the corporation’s data protection controller and found the leak to be “illegal” and “unprofessional”. He said an independent investigation would be launched to address the breaches.

He said: “The information in the public domain is being completely misrepresented and is laden with falsehoods and absolute lies. At no time has the corporation issued no bid contracts for contractors to undertake painting of works. That is simply false.”

He also said: “Several bids were received for any other related project and the lowest or best bidder selected. All major contracts are and were approved by our board of directors and board resolutions underscore the same. The contract/memorandum process for WSC is a transparent, arduous process that requires multiple levels of due diligence and sign-offs, and that process was followed in every instance.

“The corporation retained an independent quantity surveyor. This quantity surveyor produced reports that spoke to scope of work for particular projects and proffered a cost analysis that provided a benchmark for WSC to make a sound assessment on what the works should cost. Given this, the corporation acted accordingly and, at no time, issued any contracts that are out of scope. Absolutely no balloon payments were made.”

Mr Donaldson said the attorney who originally interacted with the corporation as a legal agent for Elite Maintenance, did advise the corporation of this via correspondence.

He said he was advised of her authorisation to act as attorney of record.

He maintained that he did not own any company that has engaged in business with the Water and Sewerage Corporation.