Last Tuesday, the spokesperson, who asked not be quoted until later
in the week when senior management has had time to digest the allegations
and issue a suitable response, said that an article published in
another weekly used information that was “taken out of context”.
Sometime after the information was published over a month ago, several
letters dated “Good Friday 2004, August 2004 and October 2005”,
and signed by “a faithful and patriotic whistle-blower”,
were circulated.
The letters noted that copies were sent to Prime Minister Patrick
Manning, Opposition Senator Wade Mark, other Cabinet members and
senators, and several media houses.
According to information contained in the letters, irregularities
at PLIPDECO were brought to government’s attention over a
year ago, and Minister in the Ministry of Finance Christine Sahadeo
said that the PLIPDECO board would be asked to appoint an auditor
to investigate the company’s financial operations.
Minister Sahadeo is said to have attempted to look in to the matter.
However, one of the letters note that her “responsibility
in the area was withdrawn”.
The “patriotic letter writer alleges that problems at the
ailing State enterprise were the result of “creative accounting”
being used to cover up a plethora of irregularities at Plipdeco.
One letter accused management of stripping of the company’s
assets through the conversion of 30-year leases to 99-year leases,
with payments collected in advance.
The letter writer contends that converting and increasing the duration
of the leases amounts to selling, yet Plipdeco was “still
carrying the asset value on its books”, a practice that their
former auditors Price Waterhouse Coopers had warned them against.
PLIPDECO was also accused of switching to a more “accommodating”
firm of auditors, a charge that has also been denied by PLIPDECO’s
spokesperson, who explained that Plipdeco’s contract with
Price Waterhouse Cooper’s came to an end, and a tendering
process was used to employ another firm of accountants.
The self-styled whistle blower also claims that proceeds from the
virtual sale of lands is reflected as revenue, while the land is
re-valued at inflated real estate values and the difference listed
as profit.
The letters, apart from accusing PLIPDECO of recording false profits,
also said that money is being “squandered in all directions
at PLIPDECO”.
The letter dated October 2005 then went on to list several instances
in which the State company allegedly parted with large sums: More
than $3 million in obsolete equipment and parts.
Most of the procurement procedures were bypassed in making these
purchases.
The Fantuzzi Crane, an obsolete piece of equipment, which is reported
to have reduced productivity and cost the company over $12 million.
High mobile-telephone bills run up by senior employees.
In one case, a vice-president is alleged to have chalked up a $10,000
talk bill while on vacation.
Vehicles and other equipment such as forklifts are rented at exorbitant
rates.
Equipment rental rates often exceed the purchase prices for the
same equipment by 50 per cent or more.
A $20 million contract involving an oil company and a construction
firm resulted in a cost overrun in excess of $100 million.
Overtime payments adding up to more than $1 million per month.
Additionally, management is given the opportunity to travel, and
all travel and accommodation is first class.
Payment of directorship fees to a “Director in Absentia”,
who lives abroad.
This “Director in Absentia” is said to be the only Board
member that is known to have any financial expertise.
Word is that the irregularities at Plipdeco is the work of several
well-placed persons with connections to the ruling People’s
National Movement (PNM).
The letter writing “patriot” said that while some people
at the highest levels of government are aware of “rampant
corruption” at the State enterprise, it is believed that they
are prepared to continue turning a blind eye as a favour to their
friends and fellow PNM party members. |
