FRESH allegations of corruption and financial impropriety have been brought by the Estate Management and Business Development Company Ltd (EMBD) in its multi-million-dollar “cartel claim” against a group of contractors and former minister of housing Dr Roodal Moonilal.
On Monday, the State company filed its defended statement of case in the lawsuit that is to be heard by Justice Frank Seepersad.
Essentially, the company, in its new allegations, is claiming payments were made by some of the defendant contracting companies to third parties, who it claimed were connected to Moonilal and the United National Congress (UNC).
“Such payments (or benefits associated with them) constituted secret commissions received by the First Defendant (Moonilal) in breach of his fiduciary duties and his duties to the Republic under the Integrity in Public Life Act 2000,” the amended statement of case stated.
During Monday’s hearing, attorneys for the defendants said the company should not have been allowed to amend its claim given the period of time that the matter has already been pending before the court.
In response to their objections, however, the judge pointed out that while the matter was filed almost seven years ago, it would have been pointless to have the EMBD file the amended claim prior, given there was a procedural appeal before the Privy Council, which was only resolved late last year.
Justice Seepersad stated that while the first case management conference has only taken place in 2025 given that the claim was filed in 2017, he intended to move forward with the trial in an efficient manner.
The judge went on to set timelines for the defendants to amend their defences in light of the fresh allegations raised by the EMBD, and adjourned the matter to May 27.
The substantive lawsuit centres around 12 contracts for the rehabilitation of roads and infrastructure granted to five contractors before the September 2015 general election.
Three of the contractors—TN Ramnauth and Company, Kall Co Ltd (Kallco) and Mootilal Ramhit and Sons Contracting—had initially initiated proceedings against EMBD for the almost $200 million owed on their respective contracts.
EMBD eventually counter-sued the contractors, claiming they, as well as contractors Fides and Namalco, conspired together with Moonilal, former EMBD CEO Gary Parmassar, divisional manager Madhoo Balroop, and engineer Andrew Walker to corruptly obtain the contracts.
It further claimed the defendants had received preliminary payments for the work that was exorbitantly overpriced and substandard.
The EMBD is seeking to recover $275 million in addition to interest, as well as a series of declarations from the court against the defendants, including one on the illegality of the contracts.
In its amended case, the EMBD claimed Moonilal served as a “shadow director” of the company as its former officials reported to and took instructions from him.
It also claimed the former minister breached his fiduciary duties as well as those under the Integrity in Public Life Act.