SPORTT VS BOARD DIRECTORS COURT MATTER
Trinidad and Tobago
A former director of the Sports Company of T&T Limited (SporTT) has claimed that he and his 13 fellow former board members were obligated to facilitate a $34 million contract for the controversial Life Sport programme, which subsequently failed.
Testifying in the state company’s ongoing breach of fiduciary duty case against the former board members before Justice Ricky Rahim at the Waterfront Judicial Centre in Port-of-Spain, Tuesday, accountant Matthew Quamina claimed that he and his former colleagues were instructed that SporTT was merely the payment “agent or provider” for the Ministry of Sport.
Quamina maintained that the ministry and a committee of officials assigned to the programme were responsible for all aspects of it besides payment of creditors.
“Although the contract was in SporTT’s name, it was directed by the Ministry of Sport,” he said.
He repeatedly denied that he and his former colleagues were required to deeply scrutinise the contract.
Quamina also admitted that before the contract was signed, he did question whether it contained an “exit” clause.
However, he admitted that he did not follow up on whether such was included, as he said that was SporTT’s chief executive, John Mollenthiel, and the ministry’s responsibility.
“It was not my role to see that contract,” he said.
Dealing with a recommendation that eBeam Interact Limited be given the contract to administer the numeracy and literacy and the interactive technology components of the occupational skills training aspect of the programme based on a sole select tender, Quamina suggested that such was the ministry’s suggestion.
“The CEO would have been in communication with the ministry, the permanent secretary, and the minister,” he said.
Quamina also admitted that after eBeam failed to perform its full obligations and demand full payment, he questioned whether the contract could be amended or terminated and legal advice was sought.
“Any reasonable person would have asked the questions they did not ask two years before,” he said.
“The board would have been seeking clarity and guidance,” he added.
Quamina claimed that he and his colleagues were not concerned by the initial proposal submitted by eBeam, which referred to services to be offered to infants and teenagers when the programme was intended for men aged 16 to 25.
“Our role was not to question the Ministry of Sport over a social programme for the national community,” he said.
Also testifying yesterday was former director Sabrenah Khayyam, who currently serves as senior manager at the Water and Sewerage Authority (WASA).
Like Quamina and the other former directors, who testified since last Friday, she denied any wrongdoing in relation to the contract.
In the lawsuit, the company is claiming that its former board acted negligently and recklessly in entering the contract.
The defendants in the case are Mollenthiel and ex-directors Sebastien Paddington, Chela Lamsee-Ebanks, Reynold Bala, Norris Blanc, Nisa Dass, Dr Anyl Gopeesingh, Cheemattee Martin, Quamina, Annan Ramnanansingh, Kent Samlal, Harnarine Seeram Singh, and Milton Siboo.
On August 22, High Court Judge Eleanor Donaldson-Honeywell rejected SporTT’s breach of contract case against eBeam but ordered it to pay $30 million in restitution as she ruled that it was unjustly enriched for services it did not provide.
While SporTT was seeking the entire value of the contract, Justice Donaldson-Honeywell deducted $4 million, which represented the nominal services inclusive of the procurement of equipment provided by eBeam.
“It would be legally unjust for the defendant to retain the benefit of $34 million when only the minimum value, unrelated to any substantial delivery of the bargained-for services, was received by the claimant under the contract,” Justice Donaldson-Honeywell said.
“The minimal services provided by the defendant did not meaningfully meet the benefit that was intended by the parties to be delivered to the claimant,” she added.
eBeam still has the option to appeal the outcome.
SporTT has contended that the case against eBeam has no bearing on the parallel litigation against the group.
Colin Kangaloo, SC, John Lee, and Stephanie Moe are representing SporTT.
The group’s lawyers include Fyard Hosein, SC, Anthony Vieira, SC, Rishi Dass, SC, Jagdeo Singh, Karina Singh, Keston Lewis, Roger Kawalsingh, Ravi Mungalsingh, Tara Bhariosingh, Nicole de Verteuil-Milne, Adrian Ramoutar, Sushma Gopeesingh, Kamini Persaud-Maraj, Neal Bisnath, Lydia Mendonca, Richard Jagai, Andrea Bhagwandeen, and Dharmendra Punwassee.
The case is scheduled to continue later today with the evidence of two more directors.
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