Senator Gregory Bowen Opposition Senator c/o Office of the Leader of the Opposition H.A. Blaize Street St. George’s Dear Senator Bowen, Re: Oil, Russians and Desalination Plants: I had the opportunity of hearing you on Tuesday, April 13th on GBN radio, on the To the Point programme, hosted by Mr. Lew Smith. On the programme, you addressed principally the above-referenced – oil contracts, Russians and desalination plants. Permit me, Senator, the following observations and queries in respect of many declarations/statements made by you on that programme. 1. Oil and Economy: While we the people and the representatives of other political parties were fretting about the high level of the national debt during the election campaign of 2003, it was you, Senator, who was jumping and waving on the campaign platform, telling we the people not to worry about the national debt, that Grenada’s oil and gas would pay the national debt MANY times over. So I wonder why, on the “To the Point” programme you sought to “rain on the parade” of the New Democratic Congress government now that it too is getting excited about the real possibility of the development of an oil and gas sector. You actually suggested that the Ministers of Government were not telling the people the truth. How long did it take you, Senator, to appreciate that one does not develop the oil and gas sector overnight? Did it take you all of the last tenure of your party’s administration, November 2003 to July 2008? 2. NNP’s Track Record: 2.1. Oil and Gas Exploration: In the Budget Speech 2004, then Minister of Finance Boatswain announced that Grenada was to continue negotiations with Trinidad and Venezuela re delimitation of boundaries. According to the former Minister, successful conclusion of those talks would pave the way for Grenada to commence oil and gas exploration. What has Grenada achieved in respect of this sector under the NNP tenure: * a MESSY contract(s) with one RSM/Grynberg whom you once described in a press conference as ‘people with whom Grenada should not be doing business.’ This contract gave exclusive rights to RSM/Grynberg in respect of the exploration of oil and gas in Grenada’s entire offshore economic zone * A contract which is now the subject of a multi-million dollar litigation. 2.2. RSM/Grynberg Contract: You sounded so self-righteous Senator, as you sought to explain to we the people how it was that Grenada found itself in “hot water” with the RSM Jack Grynberg contract re oil exploration, when you sought to annul the contract with Mr. Grynberg. Senator Bowen, we the people do not “buy” your self-righteous explanations. We want to know: * What happened to the conduct of DUE DILIGENCE checks on Mr. Grynberg which would have disclosed his track record and informed whether or not Mr. Grynberg was a suitable investor with whom Grenada should become involved? * WHY did you, on behalf of Grenada, sign a contract with Mr. Grynberg in the absence of boundary delimitations with Venezuela and Trinidad? * ON WHOSE advice was this contract signed and on WHOSE advice was the contract annulled? * How is it, Senator, that a contract that was made with Mr. Jack Grynberg since 1996 only became public knowledge in 2006 when he took Grenada and yourself to court? Permit me also to remind you, Senator Bowen, that this situation in which Grenada has found itself in relation to this RSM/Grynberg contract characterizes the way in which your party has conducted the people’s business during its tenure in office. The following examples suffice: * Dipcon: It is not unlike the situation with the DIPCON AGREEMENT, in respect of the operation of the Mt.-Hartman quarry, that you, as Minister, also ill-advisedly terminated. That action was taken AGAINST the advice of various technicians whose responsibility it was to advise you. Nonetheless, YOU proceeded and YOUR ACTION in respect of Dipcon resulted in a $17 million judgment against the Government of Grenada which is being borne by WE THE PEOPLE. * Intercontinental /Ekram Miller re Ritz-Carlton Hotel: Recall the conveyance of the people’s property, Mt. Hartman, to Intercontinental Ltd. and one Ekram Miller for a Ritz-Carlton hotel project. Not a cent was paid into the Treasury. In addition, the Government of Grenada guaranteed a loan for Intercontinental with the Fortis Bank, Belgium. Intercontinental Ltd. defaulted on the loan and a judgment in the sum of USD 6,348,598 was ordered against the Government of Grenada and Intercontinental Grenada on October 22nd, 2004. And to add insult to injury, Miller claimed that the OUR property still belonged to Intercontinental. * Transfer of Grand Beach property to Time Bourke Holdings: Again 20 acres of the people’s prime property, Grand Beach, was conveyed to Time Bourke Holdings for a PROMISE to use Lewis Hamilton’s name and face to advertise Grenada (to the value of $US15 million). And this conveyance was made by the former Governor-General, Sir Daniel Williams on July 7th, 2008, the day before the general elections of July 8th!!?? How OBSCENE!! 3. Russians: The Russians, claiming to represent an outfit called Global Petroleum Group Ltd., were in town recently. This time there was nothing SECRET about it. They were on television and held stakeholder presentations. They advised that they have an oil exploration contract, awarded by the Government of Grenada in 2008, to explore for oil in Grenada’s Exclusive Economic Zone. They have applied for a licence and are concerned that the government is not talking to them. Senator Bowen, you have told us that the NDC administration has an obligation to honour the contract. You also sought to dismiss concerns raised by the Minister of Energy that public servants were unaware of the contract with the Russians and that the contracts could not be found. Permit me to observe: * Your track record in respect of Dipcon and RSM/Grynberg contracts suggests that either you do not seek or you ignore the advice of your technical advisors – much to the detriment of we the people. * The inability to locate agreements and other documents IS NOT UNUSUAL in respect of how the NNP administration of which your were Deputy Prime Minister, conducted the people’s business. Deed of Release between the Government of Grenada, Poole Capital S.A. and Poole Capital S.A. Ltd: Permit me to bring to your attention, Sir, that in the matter of the people’s property, Ballast Ground and the Lagoon , a Deed of Release was made between the Government of Grenada, Poole Capital S.A. and Poole Capital S.A. Ltd. A perusal of the Deed of Release available at the Registry, dated December 17th, 2007 ( number 419/2008 – registered on January 22nd, 2008, Liber 4-2008, page 83 - states quite clearly that it is NOT THE ORIGINAL Deed of Release. It states that the original indenture made between the parties on October 5th, 2006 was NOT RECORDED and CANNOT BE FOUND. And what is even more puzzling, Senator Bowen, is that the original Deed of Release was made by solicitors in London. But it would appear that even these solicitors could not furnish a copy of the original Deed of Release!!?? 3.1. Global Petroleum Group: * We the people understand that the Global Petroleum Group was registered in Grenada in December 2003, less than a month after the elections which returned your party to office - just shortly after the time that you were ”jumping and waving” about gas and oil on the election platform. Was the timing merely co-incidental, Senator Bowen? * We also note that one Mr. Lev Model was the chairman of the company at the time that it was formed. Mr. Model was also associated with Call Centre of Grenada. Mr. Model was CONSPICUOUSLY ABSENT from the trio who came to town recently. Can you advise Senator, on Mr. Model’s current status and relationship with GPG? * Does Mr. Model go by any other names? * Can you advise Senator on how Mr. Model came “to town”? Does/did he have any connections with Viktor Kozeny a.k.a. “The Pirate of Prague”? * Is it true, Sir, that your daughter’s college tuition fees were paid for by Mr. Model - according to a deposition by one Michaele Rose who worked at the Call Centre alongside Mr. Model. IF this allegation is true, then wasn’t this a violation of the financial regulations governing the conduct of the people’s business? * A Google search for this company, Global Petroleum Group Ltd., does not provide any information on the company or its principals. One is left to speculate whether or not the choice of this name was meant to be deliberately confusing and possibly misleading. * What is the TRACK RECORD OF THE PRINCIPALS of Global Petroleum Group in respect of investment and investment in oil and gas in particular? * WHO are their financiers? * You scoffed at concerns about alleged mafia connections of these “investors”. Permit me to observe, Senator Bowen, that: (i) Michale Rose in her deposition stated that Mr. Model had made threats against her and told her that he was part of the Russian mob. (ii) A Google search would reveal that a number of Russians involved in oil investment are described as Russian oligarchs and also it is also alleged that these oligarchs have ties to the Russian Mafia. It would appear that the GPG investors cannot be described as Russian oligarchs. The question would be then, “Who are their financiers and whether these financiers are also Russians ? Are these financiers also described as belonging to the elite group in Russia described as oligarchs with ties to the Russian Mafia”? So you see, Senator Bowen, these allegations are not to be taken lightly and we the people ought to be concerned. We trust that in the interest of transparency, our government would provide we the people with the information we ought to know about this company which the New National Party administration, represented by yourself, entered into agreement in respect of Grenada’s oil and gas. 4. Desalination Plants: The NNP team and you in particular, Senator Bowen, have had a lot to say about desalination plants in Petite Martinique, Carriacou and Woburn. You have sought to blame NAWASA and the NDC administration for the non-functioning and deterioration of these plants. Permit me to observe, Senator Bowen, that again, this is ANOTHER EXAMPLE which typifies the manner in which the NNP and yourself in particular have conducted the people’s business. * Permit me to point out, Senator Bowen, that your administration was in office for thirteen (13) years. It only voted out of office in July 2008, less than two (2) years ago. * Permit me to also observe that NAWASA fell under your purview as Minister of Public Utilities and during this period, a number of INCOMPETENT PARTY HACKS held high decision-making office. In fact, we the people recall that management staff demonstrated against one of those hacks and asked for his removal!! * In response to all of those accusations against NAWASA by you and your team, the chairman of NAWASA has advised as follows: o The Ministry of Public Utilities bought and installed three desalination plants WITHOUT any input from NAWASA, without the benefit of any feasibility study. When the plants were installed in Petite Martinique and in Carriacou, they could not be hooked up to any distribution system since a distribution system did not exist. o In Woburn, AFTER the plant had been installed, drilling for water took place and it was found that the BRACKISH WATER DID NOT EXIST in the location where the plant was installed. * Senator Bowen, permit me to point out that this matter of the installation of desalination plants which have NEVER functioned is not unlike previous decisions/actions taken by yourself: o Traffic Lights – remember Senator Bowen those lights in the Springs-Belmont junction which have NEVER WORKED after they were re-installed. Indeed, we the people want to remind you that this was another ill-advised contract that Grenada had to go along with or face serious legal consequences. o The WORREL REPORT also speaks to your modus operandi as manager of the Gravel, Concrete and Asphalt and the Grenada Electricty Services. o The Worrell Report, ref pp.48-55 provides the following insights into your tenure as manager of the Grenada Electricity Co.: “The Minutes of the Board of Directors show that Gregory Bowen and ………… took management decisions without the prior approval of the Board of Directors and without adhering to above procedures1. As a result the company suffered considerable financial loss.” o The Worrel Report provides the following information in respect of The Purchase and Installation of the Mirrlees 16 K V Major 5 M W Diesel Engine Generating Set: In 1986, Gregory Bowen ordered for the use of the company one Mirrlees 16 K V Major 5 M W Diesel Engine Generating Set. The cost of this set amounted to ₤345,000, while the cost of ancillary electrical equipment amounted to ₤230,000. There is nothing in the minutes to indicate that the Board of Directors had given its prior approval to the purchase of this equipment or that any feasibility studies were carried out and presented to the Board……………. Certain preparatory work was required to the building in which the set was to be installed. This work did not commence until October. In the meantime, the set was stored in a metal container on the premises of the Company. In November it was discovered that the crank-shaft had rusted in two places. The crankshaft had to be returned to the supplier to be repaired at additional expense to the company. o Gravel, Rock, Asphalt and Concrete Products: The Worrel Report provides the following information on Procurement: (ref. pp 42-46): The Commission received evidence that there was no proper system of procurement of supplies. An example was given of the purchase, in 1988, of six used dump trucks for $145,000 and $30,000 paid for spare parts. The commission was informed that no inspection was carried out on these trucks nor was the engineer consulted before purchases. Between 1989 and June 1990, five of the trucks were disposed of as follows: (1) In February two of the trucks were sold for $14,000, i.e. $7,000 each compared with a purchase price of around $20,000. (2) In March 1990. two of the trucks were sold, one at $8,000 and the other at $3,000. (3) In June 1990, another truck was sold for $2,500. The Commission was told of other instances where second hand equipment was purchased by the company which in a very short time proved unsuitable, thereby incurred great loss to the company. The manner in which these trucks were purchased demonstrates the failure of the company to follow proper commercial practices consequently incurring great losses to the company. So you see, Senator Bowen, your track record as a manager and a minister speaks for itself and refutes the BLAME that you are seeking to place on the current administration and NAWASA: 1. You do not seek or heed advice. 2. You do not adhere to proper procedures 3. There is an ABSENCE of transparency and accountability. 4. Your (mis)management has resulted in significant and unacceptable financial burdens (i) to the companies that you managed or were responsible for overseeing, i.e. GRENLEC and GRACP, prior to becoming a Minister (ii) to the people of Grenada through your actions and decisions taken as Minister So Senator Bowen, you and the NNP team need to “wheel and come again”!! Please do not continue to insult the intelligence of we the people. Sincerely yours, Sandra C.A. Ferguson