Legal settlement of patrol craft dispute

The remarks were spurred by the resolution of the two year issue between the Government of the Republic of Trinidad & Tobago (GORTT) and UK based British Aerospace Engineering Systems (BAE) over three offshore patrol craft, which finally resulted in a settlement by BAE for US$1.382bn in November.

Mr Ramlogan told the press: “Trinidad & Tobago is serious about its business and is not a third world banana republic where you can come and get away with murder. It means we will respect and honour our contractual obligations but we will insist you fulfil yours.”

According to GORTT the vessels, resulting from contracts signed in September 2010 under the last administration, were cancelled after concern about project overruns, rising costs and the craft not meeting specifications. However, it seems that cancellation came very late in the process. One had been delivered, another was on sea trials and a third was approaching completion, prompting BAE to seek damages. A counter claim by GORTT followed and International Chamber of Commerce arbitration alongside a diplomatic initiative eventually found in the country’s favour.

Despite all this, the vessels have now been sold to the Brazilian Navy, the first being delivered in June and the second handed over last month.

Although Mr Ramlogan paints it as a David versus Goliath match, calling it a “significant victory” against one of the world’s biggest military defence companies and pointing out he urged the government “to not pay one red cent”, it may be partly bluster as he has been under attack at home for his handling of the affair.

In contrast BAE made a brief, dry statement to the London Stock Exchange saying: “The settlement with the Government of the Republic of Trinidad & Tobago is at an amount consistent with provisions held.”