Young: Helicopter contract not flying with PNM government

JENSEN LA VENDE23 HRS AGO

National Security Minister Stuart Young. -NATIONAL SECURITY Minister Stuart Young will write to the US Department of Justice (DOJ) to investigate a contractual agreement between TT and a US-based company that leased two helicopters to TT.

Speaking at a media conference on Wednesday afternoon, Young said after noticing several red flags in a contract between Milestone Aviation Group, that later changed to Vertical Aviation #1 LLC and the National Operation Centre (NOC), he hopes the DOJ can unearth corrupt practices.

“I shall be writing to the Department of Justice in the US. One arm of the DoJ is the FBI, which is a very serious organisation. I intend to write to the DOJ as a representative of you, the people of TT, to ask them to commence a criminal investigation into the procurement of this contract. There are certain players who may have been involved in the procurement, but they will also call upon Vertical Aviation to explain, because in the US they have very serious legislation with respect to any alleged bribery of foreign officials and how you enter into contacts with foreign countries, the Foreign Corrupt Practices Act in particular.”

Young said the contract in question is for a lease agreement for a helicopter which was not suited to be used for national security, and was outfitted to be used for executive use only.

“The helicopter could not be flown from December 2015. It had limited use.

"I would like to debunk any suggestion by the UNC that the helicopter is used by law enforcement agencies as wrong. It is completely configured for executive use.”

Young added that the five-year lease for the helicopter came with a US$139,500 monthly price tag minus any cost for upkeep and training a pilot to fly the helicopter. He said the details of the contract was proposed to then head of the NOC, Garvin Heera, in August 2014. On August 20, eight days after the proposal, Heera signed the contract and a note was taken to Cabinet on September 16, 2014. On November 20 the Cabinet note was confirmed by the NOC.

Young said when his administration came into power in 2015 it reviewed the contract and realised that it was disadvantageous to TT. The aircraft also lost its airworthiness by December 2015 and has had to begrounded since.

Apart from the lease, there were hidden fees for insurance and maintenance costs of more than US$500,000 annually.

One of the red flags noticed in 2016 when the Government sought to pull out of the contract, was the waiving of the sovereign immunity which would have allowed TT to cancel the contract without being sued.

“What happened is, the then attorney general advised that TT can waive sovereign immunity. Every government has immunity in other countries, so why is it that the UNC gave up the sovereign immunity? That was the first red flag."

Another concern unearthed, which Young said he knew about since November 12 last year, was the absence of a net lease clause which prevented TT from terminating this lease arrangement, and if the Government did, it would have to pay the full amount owed on the lease.

“Another part of the clause which was quite disadvantageous was that if you fail to pay the lease, the lessor could have exercised the out option and could immediately call upon us the people of TT pay an exorbitant sum of US$16 million, regardless of any costs already paid.

"These are massive red flags.”

Young explained that the issue now concerning the TT government’s breach of contract stemmed from the unearthing of the troublesome clauses.

“The AG managed to negotiate a settlement with respect to it. and we paid a settlement agreement of US$6.5 million at the time and had to return the helicopter at our own costs, meaning costs to the people of TT. It made absolutely no sense to utilise the helicopter...there was no use for this type of helicopter under the current administration.”

The pandemic stopped the return of the helicopter, a Sikorsky S 76 D, Young said and with fighting the pandemic being a priority financial issue, the payment was not honoured.

The issue of the helicopter was raised on Monday by Oropouche East MP Dr Roodal Moonilal, who called for an inquiry into why it was never used but “hidden away” at Camp Cumuto.

The following day Young warned Moonilal not to call for any investigation into it.

On Wednesday he said that warning was because Moonilal was part of the National Security Council that approved the lease of the helicopter for national security even though it was not designed for such use.

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