LAST week, Director of Public Prosecutions (DPP) Paula Llewellyn announced that her office could not identify any evidential basis to draw the inference that Ian Moore partook in bid-rigging or corruption regarding the proposal for the financing, development, ownership and operation of an FRSU Liquefied Natural Gas (LNG) Regassification terminal and natural gas transportation system in Jamaica.

This was in response to Contractor General Greg Christie’s decision to refer the matter to both the DPP and the police to determine whether “Ian Moore, lead principal of Caribbean LNG, part of the Exmar Consortium, used his public office in a conspiratory, fraudulent, corrupt, clandestine and/or surreptitious manner to ensure a future illicit benefit for himself, Caribbean LNG (Jamaica) Limited and/or Exmar Consortium through, inter alia, the irregular utilisation of propriety insider information and/or through the exhibition of a bias or preferential treatment towards Exmar Marine NV in the referenced tender process for the FRSU LNG Project.”

After considering the matter for several months the DPP concluded: “In the circumstances under review, Exmar Consortium was at a clear advantage when they submitted their proposal to the Technical Evaluation Committee.

However, we identify no evidential, whether direct or circumstantial, basis to draw the inference that their advantageous position was the result of bid-rigging or corruption on the part of Mr Ian Moore or Mr Stephen Wedderburn.”

Vindication

Moore feels to some extent vindicated and exonerated and has always maintained that his actions were not egregious, corrupt or illegal in any way. Speaking to Caribbean Business Report, Moore said: “When the initial report came out, it was a very bad time for my family and especially my parents. They are 77 and 78 respectively and had to read all manner of disparaging information about their son. They took it very hard. I am lucky that my children are still very young and at an age where they cannot comprehend such matters. Being vindicated by the DPP is more comfort for my family than it is for the project.”

Moore went on to add that he had always maintained that when the facts came out people would get the true picture of what transpired and see that the accusations was way off the mark.

“I have been reading a lot of Ronald Reagan lately and he says, ‘facts are stubborn things’. In this case those are words to live by. I have repeatedly said that this will end up in court when the facts come out, people will understand fully what transpired. We are happy that the process has been concluded, although Greg Christie doesn’t seem to be. The DPP has ruled and Christie is still stoking the fire. We do not understand what is going on with him but we are guided by the law as we have always been. The DPP has the authority to make a ruling and we accept that,” declared Moore emphatically.

Taking legal action against the government

So what is the state of the project now and does he believe they will be successful the second time around?

“Well, there will be another bid process and we are contemplating whether we should rebid or not. What is certain is that we will be taking legal action against the government. One of the factors we will have to consider if we were to rebid, is the feasibility of the new structure. We have read the new bid but to throw our hat in the ring would depend on how feasible it is. The factors surrounding feasibility that existed two years ago have changed. Steel prices have gone up dramatically, resources are now in demand and further compounding matters is what we see as this new technical design laid out by the government,” explained Moore.

He doesn’t see this as a stumbling block for the Exmar Consortium but notes that it comes at a cost which the government must be able to bear. The way he sees it, the government is asking the consumer to pay for a costlier infrastructure that will provide cheaper fuel. If the aim is to have cheaper electricity, then the government must be willing to pay for the requisite infrastructure. With all these factors combined, he believes the feasibility of the product can be challenged.

Cheaper energy for Jamaica

With many businesses going to the wall as a result of exorbitant electricity prices, the issue of energy has become high on the national agenda. Moore says when he first put the project together, the spectre of exorbitant electricity prices in Jamaica was a daunting one facing the country. He is of the opinion that people are only now beginning to realise what they have to contend with.

He explained: “No progressive country in the world runs on liquid fuel. The United States runs on less than one per cent of oil, so do both France and the UK. So why does oil constitute 96 per cent of our fuel generation in this country which is costing us close to US$3 billion a year when we have a total GDP of around US$14 billion? What is going to happen now is that we will see that there will be companies that just cannot survive. Then you begin to see the erosion of disposable income, the decimation of the manufacturing sector, the transportation sector grinding to a halt, and not to mention a less potent entertainment sector. Those are the areas that suffer when you have very little disposable income. Our current energy policy is hurting the country and has a contracting effect on the economy.”

No contrition from the government

He made it clear that in light of the DPP’s ruling, the Government or its agents have not yet extended the hand of contrition. An apology has not been forthcoming. “We have never received any documentation from Cabinet to say that there will be a rebidding process for the project. We were invited to participate in a telephone call to talk about the new tender. We had received official notification to say that we were the preferred bidder the first time around. However, we have not had a subsequent letter to say we are not the preferred bidder this time.

They have sent out a new tender so we can assume that the first one is null and void. The fact is the Cabinet has never written to us stating and explaining that the first letter written to us in June 2010, stating that it was awarding us the preferred bidder status, has changed. That has never been communicated to us.

“Our partners in Brussels (Exmar) have been visited by our Ambassador to Brussels and that has been the only communication received. She made it clear that the government has decided to open up a rebidding exercise and that the decision has nothing to do with Exmar. Though this may be comforting, we do not hold the view it is the proper way to communicate a Cabinet decision.”

Exmar has been wrongly tarnished

So what does the Belgium company feel now that both it and Moore have been exonerated? Moore believes it has been a very difficult time for his partner who are the pre-eminent FRSU operator in the world. “To be tarnished in this way is almost irreparable. Here in Jamaica we see the coverage of this matter in the local press but we do not see the results of what has come out in the international press. When we are accused of things like bid-rigging and rampant corruption, the whole world views Jamaica’s dirty laundry and has done so for the last year and a half. It undoubtedly hurts Jamaica’s image. Any one looking to do business here then will not look upon us favourably and we then become perceived as a country that is not business-friendly. If you tar and feather an international company like Exmar it will not go unnoticed by their government, other governments and trading blocs for that matter. Let’s not forget that Exmar hails from the European Union and that needs to be looked at and taken very seriously. When you accuse them in this way and there is not one shred of evidence that exists to support it, how then do you compensate a company like Exmar for the reputational damage it has suffered?”

Being judged fairly

Moore went on to say that the government has not done anything to atone for the damage to his reputation. As far as he is concerned he only wants to be judged fairly should both he and his partners enter the new bid. “If they should choose us, second time around, in a sense they will be in fact contradicting their original position so it augurs well for them to maintain their position. Our bid involved work and assessments from both Belgium and Colombia and we would be bitterly disappointed if the ideas we put forward have been shared with a competing interest or anyone else. All we are looking for here is an impartial assessment of our bid should we tender one.”

The former chairman of the Petroleum Corporation of Jamaica stressed that both he and his partners put forth a private project at a cost of in excess of US$5 million and that the Government of Jamaica is now trying to choose the technology for it, something that does not pertain anywhere in the world.

On this issue, Moore said: “How can this government decide on technology that Alcoa is going to use, that Alpart is going to use and that JPS is going to use? How does it have the technical ability to do so? The government should set policy and say that we are going with LNG. Let’s be clear, the Government is not putting up one cent but yet wants to dictate what technology will be used thereby adding costs. When you add costs you are asking the people of Jamaica to pay for it. Furthermore, you are asking a private company like Jamalco to pay. To me, that is mind-boggling. It’s like me saying to you, Al, that I am going to choose a car for you, determine the engine size and the colour and you are going to pay for it. I have no money but you are going to pay for it. How can that be?”

What now for Ian Moore?

The new bid process is scheduled to get underway on November 30, 2011. So what now for Ian Moore? He continues to maintain his primary business which is an IT company. He is very much interested in seeing Jamaica address its energy problem which has prevailed for the better part of thirty years. He also stressed that he submitted all his audited accounts to the contractor general for his inspection.

“I am not saying that I am the one to provide the solution, but a solution needs to be had. The problem with Jamaica is that when an initiative needs to be executed for the betterment of the country, a defensive resistant group always springs up to undermine the project. I don’t blame Christie but I do feel he received a lot of bad information. Borrowing another quote from Ronald Reagan, ‘the problem with liberals is that they know so much that isn’t so’ A lot of people who ought to have known better made a lot of wrong assumptions. That’s why I took a back seat and said this thing will only be won in time, when the facts come out for all to see and that is where we are today. My hope is for the project and for making my country Jamaica a better one.”