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Bridging relationship collapses
by Ross Sheil Online Co-ordinator rsheil@jamaicaobsever.com
Wednesday, January 09, 2008

Local engineering firm Deryk A Gibson Limited is confident of winning what it says is a 'substantial' settlement from British Mabey family firm Mabey & Johnson Limited, in unpaid fees for representing them in Jamaica.

Interviewed by Business Observer, Deryk Gibson said his company ceased being Mabey's local agent over a year ago after they stopped paying the 8.5 per cent commission owed to the local firm.

Gibson had represented Mabey in Jamaica since 1998 and brokered the supply and construction of 45 steel bridges in the country under the 'Mabey and Johnson Programme' funded by a £22.8-million loan ($3.18 billion in todays dollars) from the British government in 2003.

Gibson said that his lawyers in the United Kingdom expect a settlement to be reached later this month.

"I have not represented them (Mabey) for over a year and we had a falling out because a more than substantial amount of commission is owed which they are trying to get out of," said Gibson.

Gibson's connection with Mabey made the news in the UK last week after The Guardian newspaper reported the legal wranglings between the British company and its former sales manager, Jonathan Danos.

According to that report, Mabey are suing Danos for allegedly pocketing kickbacks on deals here and in the Dominican Republic and Pamama. He in turn is alleging that commissions were artificially split up to make them smaller and circumvent official scrutiny under British anti-bribery laws.

Gibson commission's was 8.5 per cent but Mabey split it into payments of five and 3.5 per cent - cited in the Guardian article as 'commission' and 'local services' respectively.

Gibson maintains his company did nothing wrong.

Regarding the matter of the Jamaican contract not being tendered by Government, Gibson said that Mabey qualified for sole sourcing since it had offered to arrange the design, supply and finance the entire contract.

Commissions paid in the Dominican Republic and Panama were much larger at 17 and 15 per cent respectively.

Mabey is believed to have split the payments since those in excess of five per cent attract the scrutiny of British authorities under legislation passed several years ago.


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