Penny: Govt mum on $3.4b HDC ‘fiasco’

A major political firestorm has erupted in Trinidad and Tobago over a canceled $3.4 billion public housing procurement process, with opposition leader Pennelope Beckles demanding Prime Minister Kamla Persad-Bissessar immediately dismiss three senior housing ministers and the entire board of the state-run Housing Development Corporation (HDC).

The controversy centers on HDC’s June 17 announcement that it was terminating award proceedings for the massive housing construction contracts, a move that came months after the Office of Procurement Regulation (OPR) ordered a suspension of the process to launch a formal review. The contracts had been provisionally allocated to a group of vendors that included recently incorporated firms with no proven track record delivering large-scale public housing projects, a detail that first raised red flags among opposition critics in mid-April.

In a scathing rebuke of the ruling People’s Partnership (UNC) administration, Beckles condemned the opaque manner in which HDC framed the cancellation, which was listed only under the vague tender identifier RFP No. 050126 – DBF – Portfolio 1. She argued that the vague labeling was intentional, designed to prevent ordinary taxpayers from grasping the full scope and significance of the decision to scrap the award process.

For Beckles, the cancellation itself amounts to an unspoken admission that the original contract awards were improper, awarded under deeply suspicious, corrupt circumstances that reflect poorly on the entire UNC government. With thousands of Trinidadian households struggling with housing insecurity and many on the brink of economic hardship, Beckles said the opposition is committed to holding what she calls a “self-serving, corrupt administration” accountable, and rooting out graft before it becomes entrenched in national governance.

Beckles also slammed the government for failing to address the fiasco during more than 50 hours of parliamentary debate over the previous week, noting that not one government official acknowledged the scandal or addressed widespread public frustration over ongoing failures in the national housing sector. She claimed that the three targeted ministers—David Lee, Phillip Alexander, and Anil Roberts—have delivered no meaningful progress for the housing sector, arguing that Roberts and Alexander have instead focused on launching divisive, vitriolic attacks on the public while turning a blind eye to mismanagement at the HDC, allowing what is now one of the largest public procurement scandals in recent national history to unfold unchecked.

“The UNC can run, but they will have no place to hide. The war Barry Padarath seeks is just starting, and it is against a corrupt Government caught red-handed in the act in less than one year in office,” Beckles said, reaffirming her demand for the immediate dismissal of the ministers and HDC board.

The timeline of the scandal traces back to April, when the OPR ordered HDC to suspend the contract award pending a full review of procurement procedures. HDC has stated that its final decision to cancel the process was made in accordance with Section 33 of the 2015 Public Procurement and Disposal of Public Property Act, following completion of bid evaluations and the end of the mandatory statutory standstill period. As of press time, OPR chair Beverly Khan has not responded to repeated requests for comment on the review, and Housing Minister David Lee told local outlet the Express he would issue a formal statement soon, but had not released any comment as of Wednesday evening.

Speaking in defense of the government, Minister in the Ministry of Housing Phillip Alexander pushed back against corruption claims, insisting that the government’s core target of delivering thousands of new affordable homes to Trinidadian families remains firmly on track, despite the cancellation of the original procurement process. Alexander stressed that the first phase of the planned 3,700-unit national housing program has only been paused, not scrapped entirely, and the government remains fully committed to expanding access to homeownership across the country.

Alexander argued that progress on the housing initiative cannot be delayed indefinitely, noting that pre-vetted developers lined up for the project already have private financing in place to deliver units at no direct cost to the state, and that financing cannot be held in limbo indefinitely. He rejected opposition claims that the program was designed to reward political allies and financial backers of the UNC, contrasting the current process with what he claimed was widespread crony contracting during the previous 10-year PNM administration.

“This is not a friends and financier plan as the PNM did for the entirety of their ten years. All other developers who qualify and have the capacity to deliver within set timeframes and budgets are welcome to tender,” Alexander said.

He reaffirmed that all of the Prime Minister’s housing delivery promises remain in place, and the government’s goal of placing as many families as possible into homeownership during this parliamentary term has not changed. Going forward, Alexander pledged that all future procurement processes for the housing program would meet and exceed the transparency requirements set by national oversight bodies, with the overarching goals of lowering housing costs, improving construction quality, and making homeownership accessible even to low-income households earning minimum wage.

Additional details on the restructured procurement process, including new calls for proposals and tender invitations, will be released to the public in the coming weeks, Alexander confirmed.

The controversy first erupted in mid-April, when former prime minister Stuart Young first raised alarms about the composition of the selected vendors, urging the public to closely monitor how taxpayer dollars are being allocated for the project. Young pointed out that multiple firms selected for the contracts had little to no experience delivering large-scale public housing projects for the HDC, with only a small handful of the awardees holding the necessary industry experience and financial capacity to complete the massive construction work. The proposed allocations ranged from a $1 billion award to Mootilal Ramhit and Sons Contracting Ltd down to a $201 million contract for Adam’s Construction Ltd, across 11 selected vendors.