Contractors owed $2 billion, hundreds laid off

[10-01]

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Contractors owed $2 billion, hundreds laid off
Published on Jan 6, 2016, 9:18 am AST
By Anna Ramdass
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projects: A road and housing project in south Trinidad.


Contractors are owed some $2 billion by Government and have no choice but to send home employees says President of the Contractors Association of Trinidad and Tobago Mikey Joseph.

He warned that the situation will get worse.

Two contractors informed the Express that they were forced to send home a number of workers because there was no money coming in and no work at the moment so they could not be kept on the payroll. The Express understands that over 700 people have been sent home from various contracting companies.

In a telephone interview with the Express yesterday Joseph confirmed that he was aware that contractors were sending home workers and admitted that there were difficulties in getting payments from the various States agencies and Ministries.

Joseph said that he understands that there were delays caused from the general election and the change of Government.

He noted the current administration was not awarding much work at the moment and Prime Minister Dr Keith Rowley’s initiative of boosting the economy through public/private partnership in housing construction will not be enough to get things going.

Joseph said the country needs investments and business to bring foreign currency and he challenged private entities to take hold of the opportunities and expand into unchartered markets.

When questioned, Joseph said that the forensic audits being commissioned at various state enterprises will cause a further delay and the contractors cannot do anything but wait and see what happens.

“We understand they would want to check the books. We are having difficulties with some of the Ministers and contractors remain in hope they will be paid within this month or next month,” he said.

“We will wait and see (outcome of audits) and once there was no wrongdoing or malfeasance or improper [practice then we expect what is right will be done,” he said.

He said the Association held a meeting with Works and Infrastructure Minister Fitzgerald Hinds and expressed its concerns but he (Hinds) could not have given any assurances as to when the payments would come.

“This month will be a month of trial,” said Joseph adding that the Association will deal with the challenges as they arise.

Prime Minister Dr Keith Rowley last month spoke to the challenging state of this country’s economic affairs and called for austerity measures.

Questioned on whether the contractors would be open to part payments, Joseph said the Association will consider the options when it meets with the Finance Minister.

Asked how long it took before contractors were paid when there was a change in Government in 2010 from the People’s National Movement (PNM) to the People’s Partnership, Joseph said contractors had to wait nine months to a year and a half.

He noted that within the last two year’s the country’s income was slashed by 55 per cent given the drastic decline in oil prices and therefore the fallout from that would have a negative impact.

Joseph said the coffers of the treasury cannot be filled by heaven and therefore the reality of the situation is that there is need to generate more revenue.

“For the last two to three years we were not reducing our expenditure, we continued spending more and more to our own peril,” he said adding that the warning signs were there but ignored.

“That (sending home of workers) have been happening for quite a while, some people have gone out of business, some had to scale back their operation, it looks like it is going got get worse,” said Joseph.

“The economy will not be able to sustain the level of activities we had in the last 10 years, right now we can’t sustain the activities we had in the last two years,” he added.

Joseph said it is going to be tough but businesses should grab hold of the opportunities that present themselves in all of this.

“In these times there are a lot of opportunities that will present themselves if we grab hold and retool and change the way we do thing, it can be good and interesting times ahead,” he said.

HE explained that goods and services should be expanded to outside of Trinidad and Tobago.

He likened the economic hardships to children growing up and being spoon fed everything by their parents and then when the parents are out of the picture they have to fend for themselves.

Joseph said likewise the country was rich in revenues from the energy products and all of sudden it was gone leaving the country to look at other options.

[10-01]

this is really sad ... people being laid off and nothing is being done jus sinking the country into a deeper hole ..

[zoom rader]

this is really sad ... people being laid off and nothing is being done jus sinking the country into a deeper hole ..

Hope Ppl learn to use their vote wisely next time

[daas]

Pics of Anna Ramdass? She sounds delicious

[10-01]

this is really sad ... people being laid off and nothing is being done jus sinking the country into a deeper hole ..

Hope Ppl learn to use their vote wisely next time

every business owner i talk to who voted PNM back peddling now saying they thought things would get better ... when in fact its the worse its ever been in the last 5 years

[Rory Phoulorie]

But what you all want the Government to do? Pay PPG contractors money for work that was not done? The applications for payment have to be re-checked to see if they are bonafide requests for payment.

The amount of corruption that went on in the last 5 years under the PPG, it put all the corruption under the 56 years+ of PNM existence to shame.

Where UML? I actually miss her now. She has a new account?

[tr1ad]

this is really sad ... people being laid off and nothing is being done jus sinking the country into a deeper hole ..

Hope Ppl learn to use their vote wisely next time

so what you getting around to saying... that if UNC won there would be money to pay outstanding sums and more work given out?

paid from where? with what money

[10-01]

:| But what you all want the Government to do? Pay PPG contractors money for work that was not done? The applications for payment have to be re-checked to see if they are bonafide requests for payment.

The amount of corruption that went on in the last 5 years under the PPG, it put all the corruption under the 56 years+ of PNM existence to shame.

Where UML? I actually miss her now. She has a new account?

the government should at least have a few contracts running to keep the country running ...not jus stop all .... but i guess suffer the people more ...

[tr1ad]

He noted that within the last two year’s the country’s income was slashed by 55 per cent given the drastic decline in oil prices and therefore the fallout from that would have a negative impact.

rowley mammie yes

[j.o.e]

Everyone who's complaining I wonder what they expected from KPB had she got a second term?
We can't just spend our way out of this ... We have nothin to spend

[src1983]

The price of labour will go down now hopefully

No more 400 a day mason and welder

[Allergic2BunnyEars]

This sounds familiar. Reminds me of this


http://www.guardian.co.tt/news/2010/12/ ... tion-money

Contractors threaten court action for money


Members of the T&T Contractors’ Association (TTCA) are demanding the money which Government has been promising to pay them. On November 11, Prime Minister Kamla Persad-Bissessar in promising a good Christmas, said Finance Minister Winston Dookeran was working to ensure money owed to contractors as well as salaries and wages are paid. Meanwhile, however, some TTCA members are forced to liquidate assets, lay off staff and shut down their operations. President of the TTCA Mikey Joseph is accusing the ruling People’s Partnership Government of paying contractors who have strong links with the coalition party, ahead of legitimate members of the association who claim they are being owed $1.5 billion.

However, a well placed Government source is contending that some contractors are yet to be paid because of a number of ‘ghost’ bills that they have been submitting. An upset Joseph said on Friday that if the Government failed to honour the debt owed to contractors before March 31, 2011, the Joint Consultative Council (JCC), headed by Afra Raymond, will be taking the matter to the court. In fact, he said TTCA had already held preliminary discussions with attorneys. The JCC, in a letter dated December 15 and penned to Prime Minister Kamla Persad-Bissessar, outlined a list of recommendations for resolving the situation. The JCC is also demanding that the Government pays interest on the outstanding monies.

Joseph: They’re paying party supporters
Raymond, speaking to the Sunday Guardian on Friday, said, “This is a serious problem. People have had to take heavy losses.” Raymond said the last thing they want to do was head to the courts since everyone ends up losing. On December 7, Dookeran said over the last four months the State had paid an estimated $2.7 billion to the construction industry. The State’s debt to contractors, Dookeran said, was estimated between $5 billion and $7 billion. Questioned yesterday about the payments to the contractors at a Christmas treat for children at Bethel New Life In Christ Ministry in Barataria, Dookeran said the contractors who were paid were not attached to the TTCA, but from another group. Joseph, questioning who were the contractors paid, claimed none of TTCA’s 150 members had received any money. He called on Dookeran to name the contractors whose bills were settled and what criteria were used to issue payments. The contractors who were paid, Joseph claimed, “Have strong ties to the UNC and COP.” Joseph, refusing to call the names of the contractors who were paid, said “there are at least four.” Joseph said certain people have been moving together “to get everything for themselves.” Joseph said Dookeran was right; “They are not our members. I know there were some some people who were lobbying particular ministers.”

Dookeran: The debts have no authority
In addition to the TTCA members, Joseph said there are 2,250 registered contractors with the Ministry of Legal Affairs. Joseph said over a period of five years, approximately 700 contractors opened businesses “just because people figure that somebody, somewhere could have given them a contract.” Dookeran said on Friday he asked all ministries to supply him with the debts owed. “Most of those debts have no authority. That is the problem.” Dookeran said he could not pay monies that have not been appropriated.
“All these are the technical issues,” he said. Joseph said as far as he knows his members are the principals in building in this country and that all members were awarded contracts above board. Prior to this brouhaha, Joseph said the contractors who are non TTCA members came to him to speed up the payment process, even disclosing which Government minister they went to in order to facilitate quick payments.

Dirty mails to the PM
Joseph said plans are afoot by some contractors to discredit the names of some of their members.
“They have been sending dirty mail to the Prime Minister, ministers and foreign companies. I am just being patient. When the time comes those people will deal with the problems they have created. “There are those who think they are politically aligned and could use persuasion by sending letters to the Prime Minister and others to tarnish the names of some of their colleagues.” Joseph said in years gone by there was an abundance of work in the public and private sectors that kept everyone busy. “Now there is a lot of confusion. We are getting confusing signals. We are caught between a rock and a hard place.

[10-01]

The price of labour will go down now hopefully

No more 400 a day mason and welder

lol ... men will not work ... seen it happen already and if they do ... the work will be poor

[Redman]

The price of labour will go down now hopefully

No more 400 a day mason and welder

Some how its govts responsibility to insulate everybody from the economic/business cycle.

So the GORTT 'must have contracts'

In 2010 it was salt as the new govt put their people in.

The contractors had a blast since 2010... now they bawling?

Its hard to be sympathetic

[Chimera]

the PPG robbed alot of contractors and tried to blackmail them for continued support with a promise to pay if they won 2015 elections


in any event once they they did the work...they will be paid....

but by that time bank done seize equipment and house and car

[Chimera]

i hadda say...SOME contractors real enjoy theyself and profit hundreds of millions


others are owed hundreds of millions for legitimate work that the PPG boast about doing

[10-01]

i hadda say...SOME contractors real enjoy theyself and profit hundreds of millions


others are owed hundreds of millions for legitimate work that the PPG boast about doing

but in the PP time the money still trickle down to the poor man .... now u cant even taste a drop

[Fearless]

“For the last two to three years we were not reducing our expenditure, we continued spending more and more to our own peril,” he said adding that the warning signs were there but ignored.

“The economy will not be able to sustain the level of activities we had in the last 10 years, right now we can’t sustain the activities we had in the last two years,” he added.

Is the PNM fault.

[Country_Bookie]

He noted that within the last two year’s the country’s income was slashed by 55 per cent given the drastic decline in oil prices and therefore the fallout from that would have a negative impact.

Where does he get this figure from? It doesn't mesh with the figures from the budget, CBTT, or any other source.

Govt Revenue in 2013/14 was estimated at $55Bn. A 55% reduction would mean revenue for 2015/16 is now $24.7Bn.

Where is Mr. Joseph getting this? Is he pulling these numbers out of his arse?

[dougla_boy]

i hadda say...SOME contractors real enjoy theyself and profit hundreds of millions


others are owed hundreds of millions for legitimate work that the PPG boast about doing

but in the PP time the money still trickle down to the poor man .... now u cant even taste a drop

Allyuh could talk a pack of ass yes....,lolol. ....

[Redman]

i hadda say...SOME contractors real enjoy theyself and profit hundreds of millions


others are owed hundreds of millions for legitimate work that the PPG boast about doing

but in the PP time the money still trickle down to the poor man .... now u cant even taste a drop

UML 2.0 right dey sa

[RASC]

This man killing me here

[10-01]

i hadda say...SOME contractors real enjoy theyself and profit hundreds of millions


others are owed hundreds of millions for legitimate work that the PPG boast about doing

but in the PP time the money still trickle down to the poor man .... now u cant even taste a drop

Allyuh could talk a pack of ass yes....,lolol. ....

like allya wasnt in the circle

[Chimera]

actually in the PP time, the money stop trickling down

all the ministers had their wife/cousin/sister/grandfather/ poolman register companies and give contracts to them

[shogun]

Everyone who's complaining I wonder what they expected from KPB had she got a second term?
We can't just spend our way out of this ... We have nothin to spend

Allyuh seriously taking orn 10-01?

Every thread he's in he preachin' doom and gloom, because of the new administration. As if they supposed to handle the country''s affairs responsibly out of their own pockets.

[10-01]

Everyone who's complaining I wonder what they expected from KPB had she got a second term?
We can't just spend our way out of this ... We have nothin to spend

Allyuh seriously taking orn 10-01?

Every thread he's in he preachin' doom and gloom, because of the new administration. As if they supposed to handle the country''s affairs responsibly out of their own pockets.

PNM mite ... again ... u vote for it ..wat have they done "good" since im office ?

[shogun]

Lmao. Typical.

I dunno? How much "good" are you expecting to get done in 4 months?. Ten months after the PP took office and countless faux-pas and missteps later, they were still for some reason enjoying election honeymoon and people asking to give them "a chance" Lets at least offer this administration some time to get it's bearings and come up with a way forward. If they don't?... they suffer the same fate as the PP next election. That is all.

Also, I must be the worst PNMite in history, since i voted for the COP/PP in 2010.

Blame PNM for everything ........ dutty MCs

Nice.

[10-01]

Lmao. Typical.

I dunno? How much "good" are you expecting to get done in 4 months?. Ten months after the PP took office and countless faux-pas and missteps later, they were still for some reason enjoying election honeymoon and people asking to give them "a chance" Lets at least offer this administration some time to get it's bearings and come up with a way forward. If they don't?... they suffer the same fate as the PP next election. That is all.

Also, I must be the worst PNMite in history, since i voted for the COP/PP in 2010.

Blame PNM for everything ........ dutty MCs

Nice.

from wat we have seen in the last 4 mths is jus news of a down turn in the economy and the PM taking trips to weddings , major Audits , 1000 + job cuts , digging up of corruption to make matters worse ,NO gate soon , Land tax going up , Crime figures going up , soon mayb kidnapping ... the list goes on fill in wher i left out

[eurotuner]

Question: If the PP won, where would the 2b in payments come from, if there is not enough funds??
Can somebody explain this, because i thought it was pretty much common sense.
If there are any economist/economist wanna-be's that wanna answer, ill like to know.
thanks.

[pugboy]

what about the contractors who been getting paid 99% of contract up front as a "mobilization fee" ?
That has to be the biggest piece of bobol ever