Former Bahamas Electricity Corporation (BEC) Chairman J. Barrie Farrington arrives at the Supreme Court yesterday. (Photo: Ahvia J. Campbell)

The Free National Movement (FNM) Cabinet asked the board of the Bahamas Electricity Corporation (BEC) to reconsider its decision to award an expansion contract to a Korean company over Alstom S.A., formerly ABB Generacion, a Supreme Court jury heard yesterday.

Former BEC Chairman J. Barrie Farrington was testifying in the bribery trial of Fred Ramsey, 79, who also sat on the board at the time.

Ramsey is accused of receiving hundreds of thousands of dollars in kickbacks for providing inside information to Alstom, giving it an unfair advantage in the tender process. He has pleaded not guilty at his trial before Justice Bernard Turner.

Prosecutors allege that Ramsey and his American business associate Mark Smith received bribes to ensure that Alstom got the contract.

Smith has been granted immunity from the prosecution for his cooperation.

Alstom paid $772 million in fines last year after admitting that it paid more than $75 million in bribes to win $4 billion in contracts worldwide.

According to Farrington, the board's decision to refuse Alstom's bid was unanimous.

After meeting again at Cabinet's direction, Farrington said, all members of the board still refused the bid.

Farrington recalled, "We were invited to reconsider the decision at the board level and once again the board stuck with its reasoning for recommending Han Jung (the Korean company)."

Notwithstanding, Farrington said, the board was directed to award the contract to Alstom.

The directive was not well-received by the board's Vice-Chairman Vincent D'Aguilar, who stepped down.

Farrington said, "It went against the grain of certain board members and Mr. Vincent D'Aguilar resigned."

According to Smith's evidence, Ramsey approached former FNM Deputy Prime Minister Frank Watson, who had ministerial responsibility for BEC, after Alstom's bid was rejected in November 2000.

Watson suspended the award of the bid pending an "investigation" and Cabinet awarded the contract on March 1, 2001.
Smith said that he and Ramsey were paid a commission for getting "the deal".

During cross-examination by defense lawyer Wayne Munroe, QC, Smith was referred to a letter written by Alstom officials to former Prime Minister Hubert Ingraham after a meeting with him.

Smith agreed that from the letter the officials knew that the Cabinet, which Ingraham headed, had the final say on the award of the contract.

Munroe asked Smith why he objected to a clause in his consultancy agreement with Alstom that forbade the bribing of public officials.

Smith said, "Even though it was a ruse, it was still a contract and I didn't want them to weasel out of it."

Munroe asked Smith how he determined that Ramsey's company, Caribbean Business Supplies Limited, owed him over $25,000 that was deducted from one of his "commissions".

Smith said, "It was my wife, who was my bookkeeper, who put together the information."

Munroe asked Smith if he had the invoices to support this total and he said, "The actual invoices, no."

The case continues today at 10:30 a.m.

Acting DPP Garvin Gaskin is the prosecutor.

Artesia Davis

Guardian Senior Reporter

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