Court building project shock
The Canadian construction company which partnered with local company Landmark on the troubled Police/court building has left the job – and walked away with a hefty settlement, The Royal Gazette can reveal.
Government is refusing to answer questions about the departure of Lisgar and mystery surrounds the details of the project.
This paper understands Government gave $800,000 to Landmark/Lisgar to provide a performance bond worth nearly $7 million for the $78 million project in Hamilton.
However the bond could not be bought as all the assets underpinning it were in Canada.
Bond company Aviva returned the money to Lisgar late last year. It is understood Lisgar have kept around three quarters of that $800,000 as part of the settlement.
Questions sent to Government about the status of Lisgar have been repeatedly ignored.
And it has also emerged that Landmark/Lisgar Construction Ltd. has changed its name to LLC Bermuda Ltd.
Landmark boss Edmund Lee Matvey still holds most of the 10,000 shares. Following the name change in early December, a mysterious trust which operated when it was Landmark/Lisgar, holds 3,900 shares.
Last night Opposition MP Patricia Gordon-Pamplin called on Works and Engineering Minister Derrick Burgess to come clean about the project.
She told The Royal Gazette: "What has happened with that money which has gone to Canada?
"That would be the $64,000 question – no, make that the $800,000 question.
"Where is the money that went to purchase the bond when in fact the bond was never consummated?"
And she blasted the secrecy surrounding the trust.
"I am tremendously concerned when things are done secretively when taxpayers' money is involved," said Ms Gordon-Pamplin.
"You have a company where no one knows who the shareholders are. There is all kinds of secrecy surrounding it.
"What is so private that the public who are paying for it are not able to know what is happening? I really don't understand. I think the Minister needs to make a statement."
"I don't get what is going on – why everything the Government touches turns to mud when it comes to projects. There seems to be no semblance of responsibility."
She said the building of the Berkeley senior school had been a disaster, while the Stonington Beach contract given to hotelier John Jefferis, bore no resemblance to what had been put out to tender.
"How can the taxpayer trust the Government is being a good steward of their purse when every project they touch changes its face and complexity?"
Lisgar have refused to comment about the situation saying it is a private contract.
In October, Works and Engineering consultant Julian Hall said Government was not changing its construction manager and Landmark/Lisgar would remain responsible for hiring other contractors.
Landmark/Lisgar had not been the choice of Government's own technical officers when the contract was awarded and soon the project was months behind schedule.
In November, Government announced it had hired project manger Eddi Henri from BCM McAlpine to oversee the project at a cost of $400,000.
Planning permission for the new court and Police complex was originally approved in principle in February 2001. Construction began in December 2007.
Located at the corner of Church, Court and Victoria streets, the building will feature four courtrooms on the second floor, plus a family court on the third.
In March, Government said the project, which had risen by $3 million to $78 million, would be ready by September 2010.
Mr. Burgess said $66 million was for construction of the building, $6.9 million a construction manager fee, and $5.1 million built in for unforeseen changes.