In October 2017, state legal proceedings were filed against contractors TN Ramnauth and Kall Co.
Following this, the rest of the gang was reeled in- Motilal Ramhit and Sons Construction, Namalco Group of Companies, Fides Limited, together with former Housing Minister, Dr. Roodal Moonilal, former CEO of EMBD, Gary Parmassar and EMBD’s Divisional Manager-Projects, Madho Balroop, for breach of fiduciary duties.
In 2015, contractors were invited to tender for the work of developing roads to grant ease of access to lands in Caroni. The five contractors engaged in collusion with Dr. Moonilal and Dr. Parmassar for division of contracts amongst themselves worth hundreds of millions.
TN Ramnauth was then awarded the contract at $223,719,038.80 mere days before the September 7th General Elections. All contractors were paid a partial sum of $203 million.
Following the change of administration, the contractors invoiced the EMBD for balances owed and each contractor sued consecutively between April-May 2017 when no payment was forthcoming.
The counterclaim against Ramnauth encompassed dishonest assistance, unlawful means of conspiracy, bribery and damages and equitable compensation.
Text messages received from a phone used by Parmassar not only revealed that he was bribed with an HDC house to facilitate Ramnauth’s contract but highlighted a timeline of the conception and execution of contracts. Forensic work was also performed into the pricing of data of Caroni Roads, an analysis of tenders, an analysis of outcome using contractors’ lowest bids, an analysis of individually priced items in bills, an analysis of defective works, omitted works, over-certification and over-payment.
The Cartel Arrangements included:
– Inflated estimates prepared by defendant’s engineers
-Overstated quantities in the Bills of Quantities
-EMBD contractors had advanced sight of the revised, inflated, pre-tender estimates
-EMBD contractors colluded to agree, winning each of the proposed contracts
– No competitive bidding for the contracts
-Pre-selected losers adjusted prices to ensure unsuccessful bids