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Mingo refuses to disclose details of Checkmate security contract

DP
USP
Source: The Daily Herald 28 Feb 2015 06:24 AM

~ Owner's identity not provided ~

PHILIPSBURG--Questions relating to the Harbour Group of Companies' contract with Checkmate Security Services and the status of security at the port, as well as the Group's "clandestine attitude" were amongst the hot-button issues discussed in Thursday's presentation to Parliament's Permanent Committee for Tourism, Economic Affairs, Transport and Telecommunications (TEATT) at Parliament House.

Committee Chairman United St. Maarten (US) party leader MP Frans Richardson organised the meeting, which was broadcast live, with the expressed goal of hearing directly from Harbour Group Chief Executive Officer Mark Mingo and his team about a number of pressing issues.

Mingo remained mum on most questions relating to security, citing competition and safety-related concerns, as well as contractual obligations.

He did not present any "information and documentation regarding the security contract with Checkmate Security Company" as formally requested by Democratic Party ((DP)) MP Sarah Wescot-Williams through MP Richardson. He said he had made it clear that he would not "divulge that information."

Checkmate has been making headlines in recent days when The Daily Herald reported that the company is in line for a massive US $2.2 million increase in its contract with the harbour this year.

"When you do business, you cannot share the contracts," Mingo said at one point. At another point, while referring to integrity investigations, he said it became "complicated" to give strategic documents after signing nondisclosure and anti-corruption documents.

Both Mingo and Richardson stated that they did not own shares in Checkmate. Richardson said he wanted to make this "abundantly clear." Neither named the owner of Checkmate, both saying that this information could be found at the Chamber of Commerce and Industry (COCI). Richardson instead made a vague reference to his "good political colleague."

The company was sold last year and General Manager Chet Euton told this newspaper at the time that the new owners wished to remain in the background.

As previously reported in this newspaper after enquiring at COCI, O'Neal Edward Arrindell Junior is the company's director. It is unclear whether Arrindell, who was Frans Richardson's campaign manager during the last parliamentary elections, is also the owner or is a representative of the owner(s).

MP George Pantophlet asked explicitly who the owner was during the meeting, a question also asked publicly by businessman and former (DP) President Michael Ferrier earlier this week.

When responding to a number of questions posed by the various Members of Parliament, Mingo indicated that he would be able to disclose more information in a closed session.

What Mingo did disclose on the situation was that the increase in pay to Checkmate was not only an increase in the hourly rate and that long-term changes need to be made that will not take just "a year or two" because the "ballgame has changed" and changes need investment.

He also said that he had had detailed discussions with the Maritime Inspectorate, that the harbour was ISPS certified until 2018, and that the harbour had just received a facility review. Based on the review, there are actions that need to be carried out that all require budget; for example, fencing all around the perimeter having to be "higher and more forceful." He added that auditors from the ships also audited the ports.

Getting nowhere

A number of MPs expressed their annoyance in being referred back and forth between the harbour and the shareholder representative, TEATT Minister Claret Connor, when any answers to hot-button topics were being sought.

Wescot-Williams called the "hierarchy of relationship" between government-owned companies and Government or Parliament "peculiar," saying the companies should answer to questions as posed. She questioned whether Parliament was otherwise "just here to take notes."

MP Christophe Emmanuel criticised how hot-button issues always boiled down to "secrecy" or "law" with government-owned companies, saying there was a "clandestine attitude" and "shrouded quietness."

He requested that Mingo specify what breach of law there would be to present the security contract and, if it could not be given, that the old contract be provided instead. Neither was provided by Mingo. Emmanuel also said the justification written by Checkmate made the situation even worse as it "doesn't add up." No response was given to this during the answer session.

Emmanuel and other MPs said they were still awaiting answers by the minister. MP Cornelius de Weever also commented that transparency would resolve the bad perception for many and said he discouraged answers to be given to include "not going into details."

Closed Session

Richardson concluded the five-hour meeting by saying he looked forward to the closed-door meeting, where Mingo had said he would be able to divulge more information. This would take place some time after the harbour's Manager of Safety and Security Roberto Levenstone returns to the island. Richardson was assured that he could expect the relevant communication soon, as well as the presentation delivered, information from the ISPS security report, a compilation of island industry information and the Harbour Group's articles of Incorporation.

Parliament can also see a copy of the 2015 budget, through the Minister.

General topics

The meeting kicked off with a general introduction to the harbour's legal structure, subsidiaries, role in catalysing the national economy, the business model, which included cruise, cargo, yachting and ferry, and real estate, the "audit umbrella," which includes financial, operational, security and organisational audits, plans for the Great Bay and Fort Amsterdam areas, a snapshot of the Great Bay Master Plan, company history and an overview of miscellaneous projects.

Other topics discussed were the plans for Fort Amsterdam; general plans for Great Bay and Simpson Bay, including the lifespan of the Simpson Bay bridge, which Mingo said should be about five years; accessibility; general improvement plans; and general maintenance issues for the surrounding area that do not fall solely under the harbour.

In response to questions, Fort Amsterdam was said not to have been bought as yet and plans would not be divulged for strategic purposes. However, plans are not set in stone yet, there are no major changes planned, and Mingo said access for locals would be ensured and it would not be sold to, for example, a cruise line. The topic of the fort being part of a potential United Nations World Heritage List nomination was brought up, but the consequences of this remained unclear.

Mingo was accompanied by a number of key members of the management team and supervisory board.

Claret Connor mentioned 1 time
Frans Richardson mentioned 2 times
George Pantophlet mentioned 1 time
Michael Ferrier mentioned 1 time
Sarah Wescot-Williams mentioned 2 times
Cornelius de Weever mentioned 1 time

Democratic Party [DP] mentioned 4 times
United St Maarten Party [USP] mentioned 0 times
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