More MC woes as report is filed in US

Wednesday,  February 16, 2005

Following the award of the controversial debris removal contract to MC Restoration, Cayman Net News has been approached by several individuals and organisations seeking both published and unpublished information in relation to the contract in question.

Now, according to information made available to Cayman Net News, a report has since been filed with the US Department of Justice by a private investigative agency in Miami, alleging possible breaches of US law by the principals of MC Restoration.

The report claims that: “MC of Fla, Inc. and/or its principals offered a financial inducement in writing in order to secure the original contract for which they tendered, in apparent contravention of the FCPA.” 

“FCPA” is a reference to the US Foreign Corrupt Practices Act which, according to the US Department of Justice website, makes it unlawful to pay (or offer to pay) a foreign official, a foreign political party or party official, or any candidate for foreign political office in order to obtain or retain business.

The original bid by MC of Fla was reportedly submitted by way of a letter dated September 21, 2004, and the “financial inducement” is apparently a reference to an offer contained in that letter to make a contribution “at the end of the contract … to the recently established Cayman Recovery Fund.”

The original bid from MC of Fla was rejected by the then National Recovery Committee (NRC), which was shortly thereafter disbanded and replaced by the Cayman Islands Recovery Operation (CIRO). As previously reported by Cayman Net News, the Central Tenders Committee (CTC) subsequently announced that MC Restoration, described by the CTC as being based in Tampa, Florida, had been awarded a $10.7 million contract for debris removal, notwithstanding that the earlier, lower bid from the same principals had been rejected by the disbanded NRC.

However, the report says that: “… the criteria as announced by public officials in the Cayman Islands for the award of the contract were not in fact followed.” 

“The contract was awarded in an amount almost double an earlier bid by the same principals, for less work,” the report says. It also says that: “The principals undertook substantial shipping expenses prior to the contract being officially awarded…”

The report also goes on to say that “No less than three public officials in the Cayman Islands assured third-party equipment sub-contractors that the said contract would be granted, notwithstanding the fact that tendering, advertising, licensing and other statutory procedures had yet to be followed, without explaining why they found it necessary to involve themselves in a private commercial arrangement between two businesses.”

Charles Camp, of Intelligence & Security Consultants, LLC, the Miami-based private investigations firm that filed the report, declined to say who his clients were. “That’s confidential,” he said. 

Mr Camp did say, however, that his firm routinely undertakes business intelligence assignments and corporate investigations for, amongst others, Fortune 500 companies. He also said that he himself is a recognised expert in security matters, and appears regularly as a guest panelist on discussion programmes aired by a Miami television station.

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