The HDC has issued a statement responding to claims made by Oropouche East, Dr. Roodal Moonilal, regarding the Trestrail Housing Development.

Dr Moonilal has raised questions regarding fees paid to Ricky Raghunanan Group of Companies, the absence of a Performance Bond, and the contractor’s experience.

The HDC says to date, it has not expended funds to the contractor or made payments for remedial works.

It adds however that it has remedy for defective works, which can be “set off” under the contract.

The HDC says ut awarded a Silver Book Design-Build Finance contract to the Ricky Raghunanan Group of Companies, which places the overall responsibility, and risk for the design and construction of the project on the contractor.

It goes on to state, “It must be noted that contrary to the assertions made no fees have been paid, as the HDC will only remit funds for certified “fit-for-purpose” units. Further, remedial works will be performed by Clause 14.17 of the FIDIC contract which states “without prejudice to any other right or remedy, the employer (including any right or remedy of deduction or set off), may deduct from any sum due, or to become due to the contractor, under or in connection with the contract and from any sum retained from any payment otherwise due to the contractor, any sum, due or to become due, from the contractor under or in connection with the contract”. “

According to the HDC, the Performance Bond represented $7.2 million or 10 % of this contract, and insists that in 202, it recognized that after the execution of the contract, that the contractor failed to provide such bonds.

Since the performance bond was not been provided, the HDC says it made no payments to the contractor, and so, suffered no financial loss.