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APC Loses Second Legal Fight

APC Loses Second Legal FightAntigua St John's - The disagreement between the Hadeed-owned Antigua Power Company (APC) and the government of Antigua & Barbuda seems far from over, with the power company threatening to take its fight to the Privy Council, the country’s final appellate body.

Talk of further legal action stemmed from the APC losing its appeal to the Eastern Caribbean Supreme Court of Appeal.

The APC had appealed a High Court decision where Justice Errol Thomas, now the presiding judge in St Kitts, had ruled in favour of the government during the judicial review proceedings, stating that there was no evidence showing a binding contract between the government and the APC.

The Hadeed-owned power company brought action against the Antigua Public Utilities Authority (APUA), the commissioner of police, Attorney General Justin Simon, and Prime Minister Baldwin Spencer over a proposed failed joint venture initiative.

A decision was handed down in St Lucia on Wednesday, during which the Court of Appeal upheld Justice Thomas’ ruling.

Sometime in 2007, the APC was barred from loading and installing three generators at its compound at the Crabbs Peninsular.

A heavily-armed contingent of police officers was deployed to Crabbs to prevent APC from doing so.

The APC claimed that it had a contract with the government to supply 50 megawatts of electricity, which required it to pay a non-refundable deposit of US$1,000,000 for the first generator.


A further US$3,000,000 was required for the purchase of three additional generators from a company known as Wartsila.

Reports are that the power company went ahead and purchased the additional generators although the Cabinet had not yet met to discuss that aspect of the joint venture proposal.

Lawyers representing the government had stressed that the Cabinet only agreed to phase one of the two-phase proposal. This was revealed by Attorney General Justin Simon, who had given evidence during the High Court judicial review matter.

Simon said then that each phase of the joint venture project was subject to written Cabinet approval.

Caribarena was informed that the attorneys representing the government plan to defend the matter as far as the APC wants to take it.


The attorneys are confident that having won at two lower courts, their prospects at the Privy Council are very good.

Dane Hamilton QC represented the APC in this matter, while Douglas Mendes SC from Trinidad, and Kendrickson Kentish represented the prime minister, the attorney general and the commissioner of police. Gerald Watt QC was APUA’s attorney.


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15 Comments In This Article   

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Prudence...

#15 marco polo » 2011-10-22 12:32

John Justice, still stupid not to have a contract. Even with guns, you still have recourse to the courts WITH A CONTRACT!! When you lay down with ants, you are going to get bitten every once in a while. The problem is that when you rely on the glad-handing way of doing business, you take these risks.... Risk taken, bet lost.
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marco polo

RE: APC Loses Second Legal Fight

#14 Fed Up » 2011-10-20 22:28

I am not and never will be a fan of the Hadeed's, they want it all, everything, nobody else can get a sniff of anything else. However I must complement them on their efficiency at APC. They run a power plant with a handful of people, APUA run a power plant with an army of people. A local construction company I know run their operation with a handful of people and do good work, PWD have an army of people and do mediocre work at best, if you can find any of them working. Something common here ?? Private companies are more efficient, more streamlined, less wasteful, more productive, better for the country in the long term.
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Fed Up

Marco Polo.

#13 John Justice » 2011-10-20 21:42

Investors have a better and more level playing field in Vegas than Antigua.
The odds are better there than here. At least they don't pull guns on investors in vegas!!!!!!!!!! !!!!!! :sigh:
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John Justice

same old thing coupled with arrogance

#12 Galileo » 2011-10-20 19:35

All i can is that this UPP govt is very scampish,full of SXXXT and lawlessness .actually nothing surprises me anymore cuz i just dont expect any good thing from these corrupt and incompetent bunch no vision and they just dont know how to govern PERIOD only good at making a mess around the place as the scarce resources are been wasted into the drain or embezzled for personal gain
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Galileo

@Buzzbomb

#11 Dig It » 2011-10-20 16:45

Buzzbomb, I agree with you that this continued legal fights are burdensome to the people! With this sort of theatrical display, at a critical time, in a cash-strapped nation, we need to put measures in place, so government officals as parties to lawsuits could pay their own tab in legal fees, or simply pay back the state! This matter with APC v the government is nothing to celebrate for the AG or anyone, when monies paid in legal fees could have gone to pay public servants!
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Dig It

Come Again

#10 marco polo » 2011-10-20 14:35

Who in God's great creation makes an investment in generators - to the tune of $3,000,000!!! -- without having a contract? They have a place for people who make that sort of decision - its called Las Vegas....
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marco polo

Who will now Invest in Antigua..

#9 Raw Antiguan » 2011-10-20 13:16

This matter should not have reached the Courts.The Govt takes its investors to court!!!What happen to Arbitration????
This matter sends a bad signal to all investors in Antigua and the World.
It is only Antigua that will suffer from the fallout.
No businessman will invest such large funds without Govt encouragement.T he Principles of APC have always extended credit to APUA and GOVT on trust with Documents to follow..
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Raw Antiguan

@ John Justice

#8 STEVE » 2011-10-20 12:52

Seems like you know about the deal I spoke us. Give us the details. We are paying the price.
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STEVE

for the country

#7 jomo gulston » 2011-10-20 12:02

There seems to be an ongoing effort for the settlement of an amicable and efficient solution for the generation of power in Antigua and Barbuda. The in-past between APC and the Government has resulted in one party feeling injured, unfortunately that party is the people of this country, who are being subjected to higher and higher energy cost. I wonder if the escalating energy cost have anything to do with the seeming lack of interest in new investors entering the economy? I have yet to see a reduction in electricity cost since the advent of the Chinese Power plant. Perhaps everything Chinese isn't cheap afterall
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jomo gulston

Farnsworth

#6 Buzzbomb » 2011-10-20 11:48

It takes years for generators of this size to be designed, manufactured and shipped. I might have agreed with you years ago before I saw instance after instance of this regime's clear intent to erase any progress made by the previous government or maliciously rebrand it or rename it. Honouring agreements are not in their DNA. And what are these legal fights costing the people?
It's always incredibly petty and expensive with this government. Do you remember how many millions were spent just to change the seats at the Parham stadium to blue and yellow?
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Buzzbomb

AGAIN!

#5 Reader » 2011-10-20 11:36

Another glaring example of why no one wants to do business with or in Antigua. What a disgraceful country!
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Reader

Why no investment in Antigua!

#4 John Justice » 2011-10-20 10:10

Farnsworth; You can rejoice in your Govt Victory for now ,;But remember the Prinicpils of APC employ over 500 ANTIGUANS,,and they don't pay Chinese wages...
Why did your Govt try to force APC to turn on the same 33mw during the blackouts in 08. The same Generators they mobilized an Army with Sub Marchine guns to STOP. The same 33mw then now call on each time the other Migo man Chinese Engines Trip the National Grid????? :oops:
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John Justice

No contract

#3 JP Farnsworth » 2011-10-20 09:31

No Contract No Deal! I said he said but he said he didnt say and now you know why even the dumbest of lawyers will tell you "Get it in writting" and make them sign it!
Governments CAN NOT commit without a signed contract. Leaders change and life goes on. No Contract No Deal it's really that simple. You can't go to court and say something was implied based on a conversation. Okay so you read what I wrote here today so now I am bound to make you put it in writing, and I want a reciept. Just please sign right here on the this line!
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JP Farnsworth

No wrong deed will go unpunished time wil prove this.

#2 Antiguan Woman » 2011-10-20 09:16

Not that i am taking sides for the Hadeeds, this is what happens when you lie with the devil,but this Govt will go down in history as the most vindictive one in the Caribbean. The mistake was made when The APC choose to put their trust in word of mouth from an unscroupulous bunch of men while they were bosom buddies.Whateve r caused the rift is not for me to guess,but one thing i am sure of is anyone who crosses a certain member of this Govt negatively is bound to feel the wrath of his evilness. A Stanford did so,the rest is history.
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Antiguan Woman

@ Caribarena

#1 STEVE » 2011-10-20 06:39

On or around Wednesday, September 29th, 2010 the following was reported: "The state-owned Antigua Public Utilities Authority (APUA) and the privately-run Antigua Power Company (APC) have cleared the preliminary hurdles to finalising a power-sharing agreement. The two companies are in discussions on APUA purchasing more electricity from APC, possibly for the next eight years. Finance & Economy Minister Harold Lovell said the proposal “is supposed to be before the board of the APUA for final ratification.” It was also reported: "the finance & economy minister told Monday night’s Snake Pit programme, he is hopeful this will bring an end to the adversarial relationship. “Over the past several months, there have been efforts to look at the problems which have existed and which led to litigation,” he said. “I believe that things are at a stage where there should be an agreement sooner rather than later, but the whole idea is to normalise the relationship. CARIBARENA, I KNOW YOU HAVE PERSONEL WHO COULD INVESTIGATE AND SEE WHAT KIND OF AGREEMENT WAS ENTERED INTO. COULD IT BE THAT APC LOST "AGAIN", BUT THEY WON ANYWAY? LET THE PUBLIC KNOW ABOUT THE DEAL. IT IS THE PUBLIC WHO IS PAYING.
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STEVE

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