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alexk
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State-owned Educational Facilities Company Ltd (EFCL) has narrowly escaped a move by a restaurant supply company to seize its equipment to clear a $700,000 debt.
Lawyers and a bailiff representing Advance Commercial Equipment Ltd, of El Socorro, San Juan, yesterday went to EFCL’s office at Long Circular Road, Maraval, to seize equipment and vehicles which could be sold at auction in order to recoup the debt. However, they left after the company’s management paid the money, which included their fees for yesterday’s proposed action.
The company had sued EFCL over its failure to clear its debt for the supply of cafeteria equipment for seven primary and secondary schools across T&T.
The schools involved were the Aranguez Secondary, Couva West Secondary, Five Rivers Secondary, Manzanilla Government Primary, Charlieville Presbyterian, New Grant Government Primary, Cape De Ville Government Primary and Munroe Road SDMS. The equipment was supplied between 2011 and 2015 during the People’s Partnership administration. The company was paid periodically by the EFCL during the period but the debt claimed represented the balance owed.
EFCL had missed its deadline for filing its defence to the lawsuit and was given an extension to October 19 last year. After it missed the new deadline, EFCL lawyers applied for another extension. However, when the case came up for hearing before Justice Devindra Rampersad in January, they withdrew the application. As a result, Rampersad entered a default judgement against EFCL and ordered it to pay the entire sum claimed by the company within 60 days.
Varun Debideen and Kerishma Arjoon represented Advance Commercial Equipment.
EFCL, which is tasked with supervising construction and maintenance of schools, is currently facing similar claims from several contractors for almost $1.2 billion in unpaid fees.
Even with a change in Government, EFCL has still been the subject of controversy after allegations of irregularities in the company were raised in June last year. Its former chairman Arnold Piggott resigned shortly after the allegations arose but denied any wrongdoing. A central audit committee had also been appointed by Cabinet to investigate the allegations.
EFCL is the second State-owned special purpose company to face the prospect of lien from a debtor. In February, Tora Bora Construction and Contractors Limited seized computers and 13 vehicles owned by the Cepep Company Limited to recoup a $2 million debt.
The vehicles had to be eventually returned after the Court of Appeal overturned a decision by a High Court Judge who granted a default judgement after it failed to meet a deadline for filing its defence to the lawsuit. The company was not ordered to repay $500,000 that was paid to it in order to stop the action by the company’s bailiff, as the Appeal Court said it constituted partial payment of the debt. The decision is currently being appealed to the Privy Council.