ST. JOHN’S, Antigua, March 12 2015 – The Antigua and Barbuda government says it will now allow the courts to decide just how much it will pay the Antigua Power Company (APC Ltd) after the utility company filed a lawsuit claiming that several former government ministers had conspired to cause it to suffer losses.
APC Ltd claimed that the losses were due to the former government entering into a contract for the provision of a power station to Beijing Construction and Engineering Group Ltd which is also named in the lawsuit.
Prime Minister Gaston Browne said that his administration had been advised that it would be better to allow the courts to decide on a settlement.
“Subsequently I have been advised…that we should not sign any deal. I understand the government has a strong case, that the demands they are making for EC$228 million in damages and settlement that it is unlikely…and on that basis I want to make sure the people of Antigua and Barbuda get the best deal.
“I have declined signing any agreement, so I gather the matter will be tied up in court for some time. It is pointless for me trying to negotiate a 100 million dollar settlement when our lawyers are suggesting maybe 20, (million) maybe, minimal,” Prime Minister Browne said on Observer radio Wednesday.
Last month, the government said that an agreement had been reached with APC Ltd to remove the name of the EX-IM bank of China from the lawsuit.
The government had earlier issued a statement indicating that the lawsuit was threatening the “future livelihood of the people of Antigua and Barbuda” since it “would bring an immediate halt to all funding for Antigua and Barbuda from the Chinese Government”.
The government said it “is extremely concerned about this development which it regards as “non-patriotic”.
The lawsuit named former prime minister Baldwin Spencer, former attorney general Justin Simon, former non-resident Ambassador to China David Shoul, and former chairman of the Antigua and Barbuda Public Utilities Authority (APUA) Clarvis Joseph.
The company had also sought as part of the settlement it wanted the government to extend the contract to generate electricity beyond 2018.
But Prime Minister Browne said he was not comfortable with that measure, adding “I know that there is a proposal on the table that we could perhaps look towards extending the power contract to 2029.
“I mean if we have no choice but to go that route we will, but I want to tell you I have some reservations about that. In fact I even have reservations about any private entity controlling our power supply in the country.
“I honestly believe that power consumption or energy production should be controlled by the government not by any private entity,” he added.
