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Controversy in Cayman over debris removal contract

Monday, December 6, 2004

GEORGE TOWN, Cayman Islands: After considerable criticism over the opposition People’s Progressive Movement’s silence on recent controversy over a $10.7 million debris removal contract awarded by the Cayman Islands government to foreign-owned MC Restoration, Kurt Tibbetts, Leader of the Opposition and Leader of the PPM has issued a statement on the matter.

“The People’s Progressive Movement is fundamentally opposed to the award of the $10.7 million contract to MC Restoration (Cayman) Ltd for debris removal for the following reasons,” announced Mr Tibbetts last week.

“The contract was not put out to tender in accordance with the relevant legislation. There are local heavy equipment operators who are qualified to do the work and who had agreed to bring in whatever specialized equipment and expertise that might be needed and those operators were not given a fair opportunity to bid for the contract.”

The statement further went on to say that the PPM was also opposed on the grounds that those same local heavy equipment operators have already cleaned up approximately 35-40% of the debris and therefore there is no reason why they should not have been allowed to complete the job.

Mr Tibbetts added: “MC Restoration has not brought in any equipment that is not available locally or that could not have been sourced by local operators. The award of this contract to MC Restorations means that a substantial portion of this $10.7 million will leave the Cayman Islands and be invested elsewhere.

“This is counterproductive to the rejuvenation of our local economy which would benefit from this money being paid to local operators, and subsequently reinvested locally instead of being exported and benefiting other economies.”

In the statement Mr Tibbetts went on to express his and the party’s view that it is likely that local heavy equipment operators could have completed the job for substantially less money. As well as the fact that there have been allegations of significant conflicts of interest involving at least one prominent member of the Cayman Islands Recovery Operation with respect to the award of the contract to MC Restoration.

“One Cabinet Minister has publicly admitted to setting up a commercial venture which is likely to benefit from significant amounts of the subcontract work from MC Restoration,” added Mr Tibbetts. “As a result of these irregularities with respect to the MC Restoration contract the People’s Progressive Movement is calling for the following:

That the UDP Government makes public immediately the contract signed between the Cayman Islands Government and MC Restoration (Cayman) Ltd. on 19th November, 2004.
That His Excellency the Governor immediately instructs that an investigation be carried out into the award of the contract to MC Restoration in order to determine the following:
a. Whether any politician (elected of otherwise) or any member of the Cayman Islands Recovery Operation is beneficially involved with MC Restoration.
b. Whether MC Restoration is essentially the same company that made the earlier unsuccessful $6.7M bid for the debris removal contract, and if so, how do they explain the $4.0M increase in the contract sum.
c. The identity of the directors and shareholders of MC Restoration and its subsidiaries, if any.
d. Whether the 10 dump trucks which were recently imported by a company in which a Cabinet Minister is involved came from Cuba via Jamaica and who or what entities are involved.
e. Whether the Cabinet Minister’s involvement in the importation of the 10 dump trucks in the present circumstances is in breach of the Guide to the Executive Council (Cabinet).
f. Whether any politician (elected or otherwise) has committed any disciplinary or criminal offense with respect to the award of the MC Restoration contract.”

Mr Tibbetts stated that the UDP Government has acted in a reprehensible manner in relation to the award of this contract. He also questioned why the Leader of Government Business and the other ministers have failed to explain the unusual and irregular circumstances of the award of this contract to the country and said that the PPM is insisting that the relevant facts be disclosed and appropriate action be taken.

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