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‪MP Joseph Accuses Government of Breaking Laws

MP Joseph and Chinese Power Plant Antigua St John's - Former finance minister Molwyn Joseph and host Shelton Daniel discussed the new Chinese power plant during yesterday's edition of the Big Issues.

Joseph, from the beginning, expressed his disapproval and discontentment about the condition of the power plant when he toured it, along with MP Robin Yearwood, General Manager of APUA Esworth Martin, Max Hurst, and the Caribarena news team last month. He estimated that for the number of oil leaks he observed, the engines are probably 10 years or older.

Joseph said he questioned an engineer from APUA at the plant, and the engineer was unable to confirm or deny the engines' condition.

Joseph chastised those who would like to hide behind the excuse of "Chinese generosity," and said simply because the Chinese government had offered Antigua generous concessionary loans, the laws and procedures of Antigua & Barbuda should not be set aside.

He then accused the government of deliberately breaking the laws of Antigua, and not following the procedures of the Financial Administration Act, which the same UPP government passed in 2006.


The Financial Administration Act states that "no money shall be raised on the credit of the government, except under the authority of an act of Parliament or a resolution of the House." According to Joseph, the loan was never presented to the House of Representatives for a resolution or an act to be passed. He then presented an example of how government projects should be carried out, and described the procedure through which the Nevis Pier project got started.

"We brought the loan agreement to Parliament for resolution, and we had to bring the projections of the business to justify the feasibility of borrowing $22 M," Joseph said. "We had to show that we are going to create the business to pay back the loan. I recalled that at the end of the project, that the permanent secretary and the financial secretary in my ministry prepared a report, and submitted to Parliament, which is now a record of Parliament. We had to go through tendering, which we did. Now here we have spending of almost US$50 M. There's no purchase agreement that has ever come to Parliament, and no loan request of this government for authorization."

The MP then referred to another part of the Act, which states, "A resolution referred to in subsection 1 shall have effect for a period not exceeding 12 months." He interpreted this to mean that if the government enters into a loan agreement, the loan agreement should be brought before Parliament for approval within 12 months. And even now, four years following the government's entry into the loan, Joseph claimed that several members of Parliament are yet to see the loan agreement.


At this point, Joseph referred to yet another section of the Finance Administration Act, which states that any loan is a contingency of the Consolidated Fund, and as such, both the minister of finance and the accountant general must play a role. This role was not known by Joseph, and is seemingly unknown to the public.

Joseph then voiced concern about the person in charge of the disbursement of the loan. "Who is disbursing this loan, on this contract. Who in Antigua?" he asked. "Or who has been appointed as agent, to disburse this loan? Nobody knows! Obviously there has to be some agent in China, or someone in Antigua. Does the financial controller of APUA know anything about it? The general manager appears to know very little about this transaction. The issue here is that the government failed to come to Parliament, the government failed to explain to the people whether or not these are new or rehabilitated engines."

Shelton Daniel then commented on APUA General Manager Esworth Martin's handling of the matter. He said, "Up to now, the general manager is insisting that these are new engines, or that they are supposed to be. In fact, he seems to be hedging well in saying that we did everything in our judgement and competence to ensure that the power plant engines were new. Now this is different from saying categorically that I can vouch that the engines are new. When you start saying things like we did, everything in our judgement means you are leaving open a hair as a possibility that they are not new."


Shelton Daniel also noted that APUA has all kinds of resources and engineers available. With this level of expertise, he questioned how no one knew the engines were not new.

Near the end of the show, Joseph highlighted the fact that even if APUA's engineers had seen new engines being constructed when they visited China, it is possible that a different set of engines was loaded on the boats headed to Antigua. "I am absolutely sure that no Antiguan representative was in China when those plants were being prepared for shipment," he said.

Both MP Joseph and Daniel pointed out serious questions regarding the power plant. So far, only one thing is certain: At a time of great economic struggle, the people of Antigua & Barbuda will have a hefty concessional loan to pay off for the next 20 years.

See related stories:

Antigua Power Plant - No Straight Answers

Chinese Power Plant or Antigua's White Elephant‬

Power Plant Production Costs Explained

PM Says ALP Distorted Power Plant Info

No Plan Behind the Power Plant

Yearwood Presents Figures on Chinese Power Plant



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31 Comments In This Article   

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@ fnpsr, tenman, Skyewill & Fred - Education

#31 John French II » 2012-01-18 02:52

Notes From A Native Son Of the Rock. fnpsr, thanks for your kind words. Friends, we must continue to educate and speak truth to power.

There is so much to be done that requires exceptionally well trained and experienced professionals. Many are focussing their attention on the Plant and its Equipment. The Financing issue raised by Tenman is huge. Let me quietly raise an issue which someone may have addressed, but which can be a true Killer. Are the sub-stations & HV transmission lines adequately Engineered?

When the MSJMC was planned, a critical issue was sewage management.
Ask the engineers when the Sewage Treatment Plant was addressed?
Do the Citizens know where the black & grey water is transmitted into St. John's Harbour? To understand the huge impact on a decaying system built as a Storm Retention Pond, visit the Holding Pond which empties into "Dam Gutter"

Many have spoken of the Sewer Polluted waters of East & West Country Retention Ponds. The Tanner Street Gutter and the continued deterioration due to lack of maintenance. The size and severity of the damaged section cries out for repair. Nuff Said. Respect.
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John French II

re: John French II

#30 fnpsr » 2012-01-17 01:01

John French II, thanks for bring clarity to a very complex issue. It is very obvious that the powers that be are well over their heads. It is okay to be over your head as long as you realize it. But when you realize that you are over your head, you should seek help. It is very apparent to me that the powers that be were over their heads and did not have the wisdom to realize it. Such is the state of most of the situations that cost the good people of Antigua dearly.

What was needed then was a multi-disciplin e approach from conception to delivery, to ensure that the government new what it was ordering and that it received exactly what was ordered.

What is needed now is an independent audit to determine what went wrong in the process; hold those responsible for the fiasco accountable and how to prevent future occurrences.

“Let’s fix the little things before we attempt to fix the big things.”
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fnpsr

Building Human Capacity to Aid Nation Building PT3

#29 John French II » 2012-01-17 00:22

Notes From A Native Son Of The Rock. Tenman wisely raises the Financing Issues which many have given a cursory thought. Quote:
The country now has major foreign currency exposure. The Chinese currency is expected to appreciate at some 4% yearly (was 5% last year see news.xinhuanet.com/english2010/china/2011-08/11/c_131043045.htm), which effectively makes the loan at least (7 - 8% yearly 3% interest + at least 4% currency increase in comparison to the USD).

Read more: http://www.caribarena.com/antigua/news/latest/99413-antigua-power-plant-no-straight-answers.html#ixzz1jgWnaEHV[/ Dr. Min Fin. signed the Doc. He should be familiar with: In 1970, Halifax decided to finance the construction of the bridge with low-interest loans denominated in foreign currencies. That decision saved money in the short term and allowed the tolls to be kept low. Appreciation of the German Mark and the Swiss franc wiped out the interest cost advantage, added massively to annual debt servicing costs. debt amounted to nearly $125,000,000, triple the total cost of construction for both harbour bridges of about $42,000,000. Caveat Emptor. Tenman Thanks.
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John French II

Building Human Capacity to Aid Nation Building PT2

#28 John French II » 2012-01-16 23:59

Notes From A Native Son Of The Rock. This "Voice in The Wilderness" provides information on the Commissioning of Complex Engineering Projects such as the Electrical Power Plant - designed and built by the Peoples Republic of China and its Agents. This is suggested not only to ensure that Quote:
mission critical facilities support essential public infrastructures
but also through technology transfer Quote:
assists in the delivery of a project that provides a safe and healthful facility; optimizes energy use; reduces operating costs; ensures adequate O&M staff orientation and training; and improves installed building systems documentation.
Tenman researches Judge Mitchell's: Quote:
A contract to purchase electricity generators for a national power plant is usually a lengthy and detailed document. It would provide for a plethora of matters ... It would deal with accessories, spare parts, maintenance and guarantees, etc. Local engineering experts would sign off on the suitability. ... would normally be expected to be prepared by senior counsel retained by the Authority in the country of sourcing and instructed by the experts.
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John French II

Building Human Capacity to Aid Nation Building PT1

#27 John French II » 2012-01-16 23:36

Notes From A Native Son Of The Rock. Good Governance finds comfort in A Shared Vision, Strategic Planning, Transparency & Accountability to the Electorate.
MP. Joseph accused the Quote:
GOAB accused the government of deliberately breaking the laws of Antigua, and not following the procedures of the Financial Administration Act,
The Aye's Have it.

Skyewill noted Quote:
that the Management fees are junk fees, somebody got fat.
Fred advised that Quote:
A engine ... whether marine, stationary,construction or even auto will be indentified with a number which can be referenced as to the exact time and day/year this engine came out of the assembly plant.So if you got a snow job it's the jokers who purchased it.
fnpsr provided a brief A/E/C Procurement Process with questions. Quote:
Did the Antiguan officials conduct a “punch list” inspection? Were deficiencies noted during the “punch list” inspection corrected? Did the Antiguan officials sign off that the island received what was ordered; that it was installed properly; that all deficiencies were corrected and that the plant was operational?
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John French II

to avoid confusion

#26 tenman » 2012-01-16 21:16

Here is the relevant pic, my prior post referred to


..
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tenman

RE: ‪MP Joseph Accuses Government of Breaking Laws

#25 Curious » 2012-01-16 20:26

Does anyone else see what Tenman sees. Make sure you have your magnifying glass
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Curious

Smells like rotten fish

#24 sharon » 2012-01-16 20:19

It does not matter which way you turn this the result is the same, this is pure thievery. even if the engines were new they are still too expensive. the fact that the loan was approved 2 months before XMEA was a legal entity suggest to me that it was set up to facilitate the thievery. old engines were acquired because it was the cheaper option and increased the loot. Some people were smiling to the bank but are now running scared. The fact that xaxny was engaged and his argument is exactly the same as that given by the Prime Minister confirms my suspicion to me.
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sharon

John French II

#23 tenman » 2012-01-16 20:15

John French II, again thanks for adding some clarity to what the process should have been. As I read your post, I am reminded again of the Don Mitchell report which spoke of the importance of APUA getting experts when they go about making decisions like this. Based on what has happened, with these generators, it seems again like good advice was ignored for expedience and we keep ending up on the same merry go round. Let me end by quoting Judge Mitchell:

Quote:
C. A contract to purchase electricity generators for a national power plant is usually a lengthy and detailed document. It would provide for a plethora of matters before it could be considered a satisfactory arrangement. It would deal with accessories, spare parts, maintenance and guarantees, etc. Local engineering experts would sign off on the suitability. The document would normally be expected to be prepared by senior counsel retained by the Authority in the country of sourcing and instructed by the experts. It would be vetted and approved by the Authority’s counsel in the destination country. The Tenders Board procedures would have to be followed, except in exceptional cases as permitted by law.
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tenman

Where ara all the spin bowlers

#22 Lester Baldwin » 2012-01-16 19:08

I think our PM should borrow Errol Cort's PRO and former UPP PRO Winston "Fled The Scene" Henry for this one. He needs him badly. This keeping quiet is gonna ad gas to the already massive fire threathening to burn down the whole of Antigua. Whoever he has now is either in over their head or purposely leaving him out to dry. Call the press conference already!!! That is ofcourse ... if you have nothing to hide.
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Lester Baldwin

More than that

#21 The Wadadli Blogger » 2012-01-16 18:52

This does not seem like an accusation. This is a fact. If they didn't come to Parliament like they should it is a fact that they are breach of the laws not an accusation.
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The Wadadli Blogger

guess2

#20 tenman » 2012-01-16 18:18

guess2, thanks for the link. What I noticed is that rust had already started showing (look at the second pic). Something which seems strange is that those generators do not look like the latest model (Caribarena has pics up of a recent model) In addition its clear that these were reconditioned generators due to how badly they rusted in a 2 month period

..
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tenman

Tenman

#19 gues2 » 2012-01-16 17:12

Tenman
No comments on the PICS?
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gues2

RE: ‪MP Joseph Accuses Government of Breaking Laws

#18 fnpsr » 2012-01-16 16:55

There are a lot of questions to be answered. First of all, most companies don’t build multi-million dollar equipment and put them on a shelf and wait for an order to come in. The equipment is usually built according to a particular specification for a particular customer. So, what did Antigua order and did it get what it ordered? Did the Antigua officials, i.e. engineers and tendering board verify that they received what was ordered? Was the equipment installed according to the specifications? Did the Antiguan officials conduct a “punch list” inspection? Were deficiencies noted during the “punch list” inspection corrected? Did the Antiguan officials sign off that the island received what was ordered; that it was installed properly; that all deficiencies were corrected and that the plant was operational? At a minimum, anything less would be gross negligence bordering on malpractice by the engineers.

As usual, the powers that be always seem to put the cart before the horse.

“Let’s fix the little things before we attempt to fix the big things.”
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fnpsr

Commissioning & Technology Transfer PT4

#17 John French II » 2012-01-16 16:23

Notes From A Native Son Of The Rock. I have not raised the issue of new or old generators. Those questions can be easily answered by any "Power Engineer". Given the questions which have been raised in Parliament, by the 4th Estate and some segments of the Electorate, GOAB & APUA should provide the correct answers. Let me end with a few quotes
Quote:
ASHRAE Guideline 0, The Commissioning Process, defines commissioning as "a quality-oriented process for achieving, verifying, and documenting that the performance of facilities, systems, and assemblies meets defined objectives and criteria".

Quote:
BenefitsCommissioning assists in the delivery of a project that provides a safe and healthful facility; optimizes energy use; reduces operating costs; ensures adequate O&M staff orientation and training; and improves installed building systems documentation.
Quote:
Governmental projects commonly employ commissioning because mission critical facilities support essential public infrastructures.

A well Executed Commissioning Process avoids future complications. Heaven Help The Nation of Antigua & Barbuda.
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John French II

Commissioning & Technology Transfer PT3

#16 John French II » 2012-01-16 16:03

Notes From A Native Son Of The Rock. Wikipedia further addsQuote:
:Independent Discipline Commissioning of large civil and industrial projects (such as chemical and petrochemical plants, oil and gas platforms and pipelines, metallurgical plants, paper and cellulose plants, thermoelectric and hydroelectric plants, buildings, bridges, highways and railroads) is a complex and sophisticated technical specialty, which may be considered as a specific and independent engineering discipline, as important as the more traditional ones (civil, naval, chemical, mechanical, electrical, electronic, instrumentation, automation and telecom).
This begs the question? Does APUA have that Capacity in its Engineering Ranks. If not, was any attempt made to develop this Capacity through Technology Transfer. I am raising these issues not as criticisms but to remind that as a young Nation where Human Capacity Development is critical to Nation Building, every effort must be made when the opportunity arises from such huge and complex projects to enrich our people professionally.
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John French II

Commissioning & Technology Transfer PT2

#15 John French II » 2012-01-16 15:51

Notes From A Native Son Of the Rock. Quote:
Project commissioning is the process of assuring that all systems and components of a building or industrial plant are designed, installed, tested, operated, and maintained according to the operational requirements of the owner or final client. A commissioning process may be applied not only to new projects but also to existing units and systems subject to expansion, renovation or revamping.
In practice, the commissioning process comprises the integrated application of a set of engineering techniques and procedures to check, inspect and test every operational component of the project, from individual functions, such as instruments and equipment, up to complex amalgamations such as modules, subsystems and systems.
Commissioning activities, in the broader sense, are applicable to all phases of the project, from the basic and detailed design, procurement, construction and assembly, until the final handover of the unit to the owner, including sometimes an assisted operation phase.
This is being provided to remove any questions as to Bona Fides in addressing this issue.
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John French II

Commissioning & Technology Transfer PT1

#14 John French II » 2012-01-16 15:43

Notes From A Native Son Of The Rock. Many of the Reports and News Articles speak to Commissioning of the Power Generating Plant. Here is the GOAB's Official Announcement: Quote:
A New Beginning for APUA with the Commissioning of a New 30 Mega Watt Power Generation Plant. The Commissioning of the new 30 mega watt power generation plant at Crabbes on Thursday of this week will signal a new beginning for the Antigua Public Utilities Authority.
Two questions were posed by this "voice in the wilderness":Quote:
Has the Plant been Technically(Professionally) Commissioned? Did APUA or GOAB contract with a Specialist Commissioning Agent to Work with the Chinese Contractor in the Commissioning of the Plant?

Rather than addressing these questions from experience and lessons learned, some definitions will be provided. Your forebearance and indulgence will be appreciated. First let me state at the outset that the use of the word Commissioning as used in the reports and announcements is completely wrong from an Engineering Discipline. Please note also that The Power Generation Plant falls in the category of a -Thermoelectric - Electrical Industrial Plant.
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John French II

Roger.l

#13 tenman » 2012-01-16 15:16

Roger.l there was an act passed in parliament which established APUA funding. The illegality of APUA funding is yet to be proven but what has been done with the Chinese loan is clearly illegal. Further I can't see it illegal for government to use revenues (non trust fund moneys) from a corporation it owns to do a public sector project. Agreed though, it would have been better if they had used those moneys and invested it in re-equipping APUA. Let me ask you this, if APUA funding is illegal, why is Petro Caribe legal? Is it not using moneys meant to pay for oil for social projects?

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tenman

Tanny,is that you!

#12 Malcome. » 2012-01-16 14:38

lOOKS like Sir David has hired Tanny to Sheild him from this Chinese deal.
I hope they are paying you good Tanny.
Oh ! Don't get involved in this Syrian/Labnese thing. They will get together in the end to eat you..lol :roll:
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Malcome.

@ Judge Dredd & wada

#11 Audley Dave Joseph » 2012-01-16 13:54

I think both of you have struck the nail right on the head. At this point in time, that is the issue. DID WE GET VALUE FOR MONEY & DID WE GET WHAT WE NEEDED. Let me go on record again by saying IT IS MY OPINION THAT THE MAJORITY OF OUR POWER NEEDS SHOULD BE GENERATED BY A.P.U.A. I have overheard some school children talking some very interesting things about this purchase. (1) The decision to buy one made by politicians (the engineers came after). (2) The plant WAS NOT BOUGHT with the power transformers, switches etc. (3) An American Company was asked to bid on sorting out the ancillaries. They were to secure financing to deal with this. (4) The Chinese were asked to bid and they won the bid (a so dem say). (5) Presently we are only getting 15 mega watts from the Chinese plant because they are using the ancillaries for TANGO and Tango was an 18 mega watt plant. (6) It takes a minimum of a year to get power transformer etc made for our situation here. (7) I WONDER IF DEM SCHOOL CHILDREN KNOW WHAT THEY TALKING ABOUT? :-*
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Audley Dave Joseph

@ JP Farnsworth

#10 DadliMan » 2012-01-16 13:47

Did Joseph really miss the boat? To date, the loan has not come before Parliament as the law prescribes. This administration came in riding on the wings of transparency and good governance. We are still waiting for those things to materialise.

Instead of expecting Joseph to read the tea leaves, maybe you should be imploring the government to abide by the laws they themselves took to Parliament
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DadliMan

Farnsworth

#9 Judge Dredd » 2012-01-16 13:15

Molwyn was not in Parliament in 2008. He was re-elected in 2009 after the 2004 bump in the road.
I will repeat, does new mean not used or does new mean just made?
I bet we will find that these engines are about 10 years old but had never been used.
So did we get value for money and is this what we needed?
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Judge Dredd

APUA Funding!

#8 Roger.l » 2012-01-16 13:05

Whats the differance between Going after Raddy Hill as AG for advise he gave in regards to the market and the legality of this Chinese Plant?
Both where done without Parliment approval.
Clavis in ture sued BANK OF NOVA SCOTIA, RBTT ;THE AG ,ect.
Who is he going to charge in this DEAL? :oops:
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Roger.l

Value for money...

#7 wada » 2012-01-16 12:42

I side with Judge Dredd, did we get value for money? I guess the debate will rant on whether they are new, refurbished etc. Is MP Molwyn Joseph an expert in **sing generators? Oil can leak from a new engine if the seals were not installed correctly or if they had been doing nothing for some time. This is a classic case of what VC Bird used to say "the dogs may bark but the wagon rolls on"...
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wada

Did we get value for money?

#6 Judge Dredd » 2012-01-16 12:00

There are more questions than answers. Molwyn has agreed that the country needed to have another source of energy and not place all our eggs in the APC basket. Fine. The question of new engines will be a pothole because they may have been 10 years old but never used. Does this make them new?
What we need to be asking is whether we got value for money and if we got what we needed?
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Judge Dredd

RE: ‪MP Joseph Accuses Government of Breaking Laws

#5 gues2 » 2012-01-16 11:49

tenman and ALL
Here are some pics from the opening
http://ab.gov.ag/article_details.php?id=2008&category=38
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gues2

RE: ‪MP Joseph Accuses Government of Breaking Laws

#4 fair guy » 2012-01-16 10:23

Mr Joseph is one of the more diligent ministers, he is the only one I would want to see leading the country from either party.
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fair guy

PM, take the lead, investigate and report to the people

#3 Skyewill » 2012-01-16 10:16

This is so serious that I am going to wait still a little longer to chime on this one. I believe law were broken but I still don't know if the engins are new, old or refurbished. I am still waiting for the experts to inform the public. If the government have no idea the condition of the engins then with all this that is going on they will launch an investigation and have APUA and other engineers check. The government will want to know if they have been dooped by the chinese. If they do nothing then they are hiding something and if they are hiding something then each individual involved should faces serious charges and be removed from office. One thing I am certain about, ALP leaders are not the one I am looking to for answers because I remembered the way they ran the country prior to 2004, so badly they were removed. What Antigua need is new people to run the country not the same old folks that cause us just as much debt or maybe even more than UPP. Forward ever, backwards never.
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Skyewill

MP Joseph Lax

#2 JP Farnsworth » 2012-01-16 09:05

Looks like Joseph missed the bus on this one. Where was he in 2008 before the deal was inked?
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JP Farnsworth

ABOVE THE LAW...ARE THEY?

#1 OO7 » 2012-01-16 05:36

I KNOW THAT THE LAWS ENACTED BY PARLIAMENT ARE TO BE OBEYED BY EVERYONE BUT THE WAY MINISTERS OF GOVERNMENT DISREGARDS THE LAWS WITH IMPUNITY I WONDER. WHO ARE THE PERSONS RESPONSIBLE FOR ENFORCING THE LAWS?
ARE MINISTERS OF GOVERNMENT ABOVE THE LAW? IN ANTIGUA /BARBUDA IT SEEM SO
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OO7

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