Back Street project illegal,
halt works, urges Gracita
~ Threatens to take matter to court ~
PHILIPSBURG--People’s Progressive Alliance (PPA) leader Councilwoman Gracita Arrindell is questioning the legality of the Back Street improvement project. She has written a letter to Chairman of the Island Council Lt. Governor Franklyn Richards and has threatened to take the matter to court.
She is demanding that the Lt. Governor follow the laws, regulations and the specific contract term of the Back Street beautification project that required Island Council approval it hasn’t received.
Arrindell demanded stoppage of the project and said if the Lt. Governor was “unwilling or unable” to comply with this request within five business days, she would consider taking this matter to court. A judge would then have to decide whether the Island Council had been given an opportunity to consider and approve the agreement.
The NAf. 5 million project, Arrindell contended, has started without legal approval. In a press release issued on Sunday, she stated that the Lt. Governor, who signed the contract with Windward Roads on December 15, 2006, knew the terms required the prior approval of the Island Council. “This approval has never been sought or obtained,” she said.
Furthermore, she stated, “This agreement was granted to a favourite Democratic Party contractor without competitive bids on a negotiated basis.” She mentioned an illegal pre-financing scheme guaranteed by the Island Government’s issuance of standing orders for 120 monthly payments to pay Windward Roads ahead of other creditors.
The financial agreement of the Back Street project was circulated to members of the Island Council on PPA’s request during the 2007 draft budget debate earlier this month. During that meeting, Arrindell expressed concerns because the Island Council had not handled or approved the agreement. Work was started without the Island Council’s approval.
Quoting from the letter she sent to Richards, Arrindell stated: “This continued disregard of the laws and regulations of government, as well as the continued lack of good order, good governance and best practices, has caused this government to appear to the Dutch Government and the people of this island as a lawless society where any- and everything goes.
“We urge you in the strongest terms possible to terminate the work under this proposal until the Island Council has considered and approved or disapproved this agreement.”
Because the financial agreement was never approved by the Island Council, any payments made or to be made under this agreement would be “illegal and unauthorised.” In addition, she said, the agreement was entered into without competitive bids. She also said the project had been granted to “the very contractor that appears to get most of the work from this DP Government and on a basis detrimental to the people.”
The agreement provides for a 10-year term for payment of the contract amount of NAf. 5,041,718.16 at an interest rate of 6.5 per cent per year over the 10-year period.
The agreement, Arrindell stated, is “nothing more than a loan agreement.” She said this was “another classic and illegal pre-financing contract in violation of the laws and regulations that expressly prohibit the Island Government from borrowing.”
“This DP government has given the contractor an assurance that it will be paid monthly whether civil servants, retirees, seniors, students and others can be paid because of the shortage of funds. This priority to this contractor is a shame and a disgrace in the face of all of the bills and debts this DP government owes to third parties,” she stated.
Besides that, she said, the project is hurting local businesses by depriving visitors the opportunity to shop on Back Street, as it is being carried out in an important part of the tourism season.
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