Jan. 29, 2003 – The start-up company Global Resources Management Inc. doesn't have the V.I. government's $3.6 million contract for St. Croix sewer repairs any more, but federal and local officials still have a date in District Court on St. Thomas at 10 a.m. Thursday.
As a prelude to that hearing, V.I. and federal officials clashed Wednesday in a barrage of written charges and counter-charges.
The controversial awarding of the contract — for wastewater system repairs that District Judge Thomas K. Moore in December 2001 ordered the V.I. government to complete by mid-2002 — led the U.S. Attorney's Office to file a motion on Jan. 23 asking the court to order the V.I. government to show why it should not be stopped from proceeding with the contract.
The motion charged that Gov. Charles W. Turnbull declared the territory's sewer systems in a "state of emergency" so he could fraudulently bypass the normal competitive bidding process in contracting for the repair work. It further alleged that Global Resources lacks a track record and that at least one of its principals is closely connected with the governor.
Moore then set a deadline of noon Wednesday for the V.I. government to file its response to the motion. (See "V.I. has court date on sewer repairs contract".)
That response, filed Wednesday by the office of Attorney General Iver Stridiron, argues that the federal government lacks jurisdiction in the matter and that the U.S. Justice Department allegations are "factually and legally incorrect."
It points out that the governor has the authority to bypass the bidding process in cases of an emergency. "The United States, after years of coming into this court expressing the emergency of the situation, is criticizing the swift action of the governor in attempts to comply with the court order," it reads. Further, "It is for the government of the Virgin Islands to make a determination whether competitive bidding should be waived, not the U.S. Attorney."
But then the V.I. government got personal: "If the U.S. Attorney was not so biased, by reading the governor's emergency proclamation in this case he would have known that the governor waived the competitive bidding requirement as early as 2001 for wastewater contracts, including the one here."
On Wednesday afternoon, U.S. Attorney David Nissman fired back with a press release in which he stated: "It is sad to see that the legal representatives of the government of the Virgin Islands — while terminating the disputed contract and thereby largely consenting to the legal remedy sought by the U.S. Attorney's Office and the U.S. Department of Justice — have turned to inflammatory and irrelevant personal attacks."
Nissman said his office would file a formal response "as soon as court opens tomorrow [Thursday] morning" refuting "various inaccuracies" in the V.I. government's papers and opposing its motion to have Moore cancel the 10 a.m. hearing.
Stridiron: Contract will be re-let without bidding
Stridiron confirmed Wednesday night that the governor had on Tuesday terminated the contract with Global Resources Management for repairs at seven locations in St. Croix's dilapidated sewer system.
The attorney general added that the government will immediately seek a new contractor for the work under the same "public exigency" declaration used in awarding it to GRM, which allows the forgoing of the normal procurement process.
The Public Works and the Property and Procurement Departments will make contact with "a number of contractors" and solicit quotations, Stridiron said. "Whoever offers the best price is who will get the contract — which could include the same guy [GRM] we just terminated," he said.
Global Resources has been the center of controversy not only because of how the contract was awarded but also because of who is involved with or has connections with the firm. Esdel Hansen, husband of former senator Alicia "Chucky" Hansen, is reportedly an employee. Ohanio Harris, a special assistant to the governor, was listed as the company's president until March of 2001, according to Nissman's office, and local lawyer Ashley Andrews took over as president after that.
The V.I. government document filed Wednesday said Hansen is well versed in the wastewater problems on St. Croix, having spent almost two decades as a Public Works employee. "The U.S. Attorney should have read the relevant V.I. law, with respect to the claim that the contractor didn't have sufficient experience," the response said. "That is a subjective determination…"
And the allegation that Harris's connection to the company is impermissible, the response said, would not be a valid basis for enjoining the V.I. government from proceeding with the contract.
Accusations of 'excesses and biases''
"Finally, the motion of the U.S. Attorney is not only inaccurate, both factually and legally, but slanderous," the V.I. government response said. "These inaccuracies can only be seen as attempts to convince the court to interfere in an executive decision."
Stridiron's office also charged that the U.S. Attorney is responsible for the "excesses and biases of his subordinates."
"The U.S. should be condemned for its unfounded allegations against the government of the Virgin Islands," the brief said, alleging that the actions "have caused significant harm, led to the wasting of the court's time, the V.I. government's time and caused the public unwarranted stress."
Nissman in his release responded: "It is regrettable when issues of genuine merit and public importance are raised that officials would choose to respond in such a fashion." He said the government's stance "appears to be an effort to keep people from raising legitimate concerns by putting them on the defensive."
Nissman said employees in his office and at the U.S. Justice Department "will continue to do their jobs." And he asked that the public "continue to provide pertinent information to federal and local law-enforcement authorities."
Stridiron would not comment on the contents of the government's filing, except to say that his office stands by what was said. "Attorney Nissman's protests do not impress me," he said.
Nissman said his office and the federal Justice Department's Environment and Natural Resources Division will on Thursday morning file a point-by-point refutation of inaccuracies contained in the papers filed Wednesday.
The V.I. government, along with its response, filed a motion on Wednesday asking the court to postpone the Thursday hearing, which was denied. It also asked Moore to cancel the hearing on grounds that the contract at issue had been terminated. Nissman said the papers his office will file first thing Thursday will oppose that motion.
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