By SANCHESKA BROWN

Tribune Staff Reporter

sbrown@tribunemedia.net

FNM Leader Dr Hubert Minnis yesterday questioned the financial ramifications of an indemnity clause in a letter of intent signed by Parliamentary Secretary in the Ministry of Works Renward Wells to create a $650m waste-to-energy facility at the New Providence landfill.

Dr Minnis said the agreement’s clause could create a “financial nightmare” for the Bahamian people that could cost the government “more than $40 million” to correct.

Speaking with the press, Dr Minnis said that Mr Wells “interfered with the portfolio responsibility of another government ministry” by signing a letter of intent with Stellar Energy Ltd to build the waste-to-energy plant at the landfill. He added that the document has an indemnity clause. He questioned if, under the clause, the government would be liable for payments to Stellar Energy Ltd if the project does not proceed.

Dr Minnis produced a document he said appears to be the full Letter of Intent (LOI). A copy of the document was given to The Tribune.

“The agreement ends with an indemnity clause (clause 8) which states that if for any reason the project does not proceed then each party will bear their own expenses and opportunity costs and will indemnify the other party from claims whatsoever in this regard,” Dr Minnis said.

“A close reading of this clause shows that the document is ambiguous as to the quantum of liability that Mr Wells may have subjected the Bahamian taxpayer to and the conditions under which such financial liability will be assessed. It requires the government of the Bahamas to indemnify the private developers under certain conditions without specifying a limit, which could possibly amount to hundreds of millions of dollars. Nor does it provide for exclusive jurisdiction of the Bahamian courts should disputes arise.

“On the face and by the very terms of the letter of intent, Mr Wells has in fact signed an agreement which binds the government of the Bahamas to contingent liability which could well exceed $40 million dollars if the proposed project does, in fact, proceed but then fails to receive NEC approval,” Dr Minnis argued. On behalf of the Bahamian people, Dr Minnis said the FNM demands a formal statement from the Attorney General’s Office on the issue of whether or not the letter of intent signed by Mr Wells creates a substantial contingent liability for the government.

He added: “If the Christie led government seriously wanted to assess the legal validity of the letter of intent, why did they not ask the attorney general? What we want to know is what is the opinion of the attorney general who is legally qualified to give a legal opinion. The government has either not sought or not disclosed to the public any such advice from the attorney general.”

Dr Minnis said he prays the government will find the courage to terminate Mr Wells over the issue.

If he does not, Dr Minnis said the FNM will demand the full resignation of the Christie administration and for elections to be called immediately for Bahamians to “get rid of” the government.