Now, eTeck contract under scrutiny

Concerns have been raised about lucrative contracts awarded to PriceWaterhouse Coopers (PWC) by the Evolving Tecknologies and Enterprise Development Company Ltd (eTeck). The concerns centre around the role played by eTeck chairman, Jewan Ramcharitar, a retired partner at PWC, in the award of the contracts.

This concern formed the basis of a report prepared for line Minister Stephen Cadiz by eTeck officials. Ramcharitar, along with fellow partners Graham Mitchell, Peter Inglefield and Gerald Olliverre retired from PWC after 34 years of service on June 30, 2010. The report questions whether Ramcharitar recused himself during the board meeting or was part of the decision-making process which selected PWC.

It questioned whether PWC, as eTeck’s auditors and tax advisors, could provide consultancy work for the organisation. The Trinidad Guardian understands the eTeck had written to PWC to ascertain whether any conflict existed in handling such matters. “We sought advice on this matter. But PWC said there was no conflict,” an eTeck employee told this newspaper. One of the contracts PWC secured was a consultancy to source new executives for eTeck for positions now under new job titles—VP Corporate Support Services, VP Investor Sourcing Facilitation and VP Development Planning and Management as well as president at the company.

There was no advertisement for a human resources manager which the company presently needs, the T&T Guardian was told. The company’s advertisement of these posts, which were already filled without notice given to respectives managers, resulted in legal letters being served on behalf of those managers. Kelvin Mahabir, the deputy chairman of the University of Trinidad and Tobago (UTT), will begin as eTeck’s president in June.
The T&T Guardian was informed that PWC is also handling the Vanguard Hotel contract which involves the identification, from the tenders received, of a suitable owner/operator for eTeck. Cadiz, who had not received the report up to yesterday, said as far as he’s aware the only major contract at eTeck was the Vanguard Hotel (VHL). He said US$25 million was allocated to refurbish the hotel and to source an operator to make it hospitable by November 1.

The state-owned company has also retained a lawyer at a cost of $900,000 to handle the Vanguard account.
“This was work which could have been done by the company’s own legal department,” an employee stated.
PWC has also conducted an audit of eTeck, which was sanctioned and approved by the Corporation Sole- the Ministry of Finance. PWC has submitted its audit bills for payments. But the report contends that no payment will be made unless it is clear that the chairman recused himself as an interested party from the decision to appoint PWC. Ramcharitar’s management style has irked some employees.In his defence, one employee said that “his intentions may be good but not the way he’s gone about it.”

Ramcharitar confirmed that PWC was awarded both the VHL and executive recruitment jobs after successful bids. He said that eTeck followed proper procurement procedures and that the bids were evaluated by the executive management of the company which made the recommendations of PWC to the board. When it came before the board, it was already agreed that PWC would be the best firm for the job, he said. “There was no need to recuse myself because I have no interest in PWC,” he told the T&T Guardian. Contacted yesterday, Colin Wharf, the senior partner at PWC, said he could not comment on the matter. “We are not in the habit of commenting on these things,” he told the T&T Guardian. The eTecK board, which includes deputy chairman Cheryl Abrams, Elizabeth Foster-Mahabir, Brian Frontin and Hans Johann Geiser, held its first meeting on November 3, 2010.

In January, Angostura terminated the services of PWC—the world largest professional services firm—as its auditors after a company’s shareholders’ meeting. Angostura subsequently retained the services of KPMG as its new auditor. SM Jaleel recently terminated its contract with PWC. PWC has done auditing work for the Urban Development Corporation of Trinidad and Tobago (Udecott), CL Financial and Clico.