After being vindicated in court Tuesday, Water and Power Authority board member Dean Plaskett ripped those who accused him and other WAPA directors of, among other things, accepting illegal perks during negotiations on the partial sale of the utility to Southern Energy.
Plaskett, commissioner of Planning and Natural Resources and one of three members of Gov. Charles Turnbull’s Cabinet who sits on the WAPA board, slammed his main accuser, Gail Watson Chiang, two days after most of her charges were dismissed by Territorial Court Judge Alphonso Andrews Jr.
Andrews ruled that Turnbull didn’t break the law by entering into exclusive negotiations with Southern Energy. The judge also dismissed Chiang’s allegations that the governor’s negotiating team, which included WAPA board members Plaskett, Andrew Rutnik, Arthur Downing and Ira Hobson, violated conflict of interest laws by allowing Southern to pay for their first-class airfare and rooms at the Ritz Carlton, among other things.
Plaskett made two trips in conjunction with the proposal to sell 80 percent of WAPA to Southern for $380 million to $400 million. The first was a visit to Southern’s headquarters in Atlanta where board members and Lt. Gov. Gerard Luz James II met with company executives and the governor of Georgia. The second was a three-day trip to Washington, D.C. where details of the deal were hammered out in 16-hour sessions, Plaskett said.
Still, Chiang and other critics of the negotiating team, including current WAPA board member Claude "Tappy" Malloy, alleged that tickets and hotel rooms paid for by the company constituted conflict of interest.
"I find it to be insulting for them to say I could be bought by first-class tickets and a stay at the Ritz Carlton," Plaskett, an attorney, said.
He added that allegations that Southern paid his way to the Breeder’s Cup horse race were a "blatant lie."
Plaskett noted that the court ruling said the conflict of interest charge would have only applied had the members of the negotiating team been in the position to gain financially from the deal.
Plaskett dismissed further Chiang’s claims that Turnbull had violated the law by negotiating with Southern. He pointed out that the ruling said Chiang’s former boss and Turnbull’s predecessor, Gov. Roy Schneider, was the one who initiated the deal with the company.
"That was done by Schneider," Plaskett said. "If you listen to the naysayers they’d lead you to believe it was Gov. Turnbull who went into negotiations.
"It’s clear people have ulterior motives. They gave their tacit approval before," he said.
As for the allegation Andrews didn’t throw out – that the Public Finance Authority illegally funded the government’s consultants for the deal – Plaskett said that too was initiated by Schneider. The issue will be heard on Aug. 22.
Plaskett, meanwhile, said he and the negotiating team members may take action against some of their board colleagues and WAPA staff for providing private and confidential information to Chiang’s legal team without the consent of the majority of the utility’s directors.
"We’ll take that up at a later date," he said. "People at WAPA will be held to answer."

After being vindicated in court Tuesday, Water and Power Authority board member Dean Plaskett ripped those who accused him and other WAPA directors of, among other things, accepting illegal perks during negotiations on the partial sale of the utility to Southern Energy.
Plaskett, a member of Gov. Charles Turnbull’s Cabinet who sits on the board through his position as commissioner of the Planning and Natural Resources, slammed his main accuser, Gail Watson Chiang, two days after most of her charges were dismissed by Territorial Court Judge Alphonso Andrews Jr.
Andrews ruled that Turnbull didn’t break the law by entering into exclusive negotiations with Southern Energy. The judge also dismissed Chiang’s allegations that the governor’s negotiating team, which included WAPA board members Plaskett, Andrew Rutnik, Arthur Downing and Ira Hobson, violated conflict of interest laws by allowing Southern to pay for their first-class airfare and rooms at the Ritz Carlton, among other things.
Board members made two trips in conjunction with the proposal to sell 80 percent of WAPA to Southern for $380 million to $400 million. The first was a visit to Southern’s headquarters in Atlanta where board members and Lt. Gov. Gerard Luz James II met with company executives and the governor of Georgia. The second was a three-day trip to Washington, D.C. where details of the deal were hammered out in 16-hour sessions, Plaskett said.
Still, Chiang and other critics of the negotiating team, including current WAPA board member Claude "Tappy" Malloy, alleged that tickets and hotel rooms paid for by the company constituted conflict of interest.
"I find it to be insulting for them to say I could be bought by first-class tickets and a stay at the Ritz Carlton," Plaskett, an attorney, said.
He added that allegations that Southern paid his way to the Breeder’s Cup horse race were a "blatant lie."
Plaskett noted that the court ruling said the conflict of interest charge would have only applied had the members of the negotiating team been in the position to gain financially from the deal.
Plaskett dismissed further Chiang’s claims that Turnbull had violated the law by negotiating with Southern. He pointed out that the ruling said Chiang’s former boss and Turnbull’s predecessor, Gov. Roy Schneider, was the one who initiated the deal with the company.
"That was done by Schneider," Plaskett said. "If you listen to the naysayers they’d lead you to believe it was Gov. Turnbull who went into negotiations.
"It’s clear people have ulterior motives. They gave their tacit approval before," he said.
As for the allegation Andrews didn’t throw out – that the Public Finance Authority illegally funded the government’s consultants for the deal – Plaskett said that too was initiated by Schneider. The issue will be heard on Aug. 22.
Plaskett, meanwhile, said he and the negotiating team members may take action against some of their board colleagues and WAPA staff for providing private and confidential information to Chiang’s legal team without the consent of the majority of the utility’s directors.
"We’ll take that up at a later date," he said. "People at WAPA will be held to answer."

Employers and employees are invited to the Department of Labor's Biannual Safety and Health Conference to be held from 8 a.m. to 5 p.m. on Thursday, Jyly 6, at the Curriculum Center, St. Croix.

Employers and employees are invited to the Department of Labor's Biannual Safety and Health Conference from 8 a.m. to 5 p.m. on Thursday, July 6, at the Curriculum Center, St. Croix.
Safety and Health professionals will discuss occupational safety and health topics.
Prospective attendants should register with Mrs. Doreen Pat or any OSHA employee at 772-1311.

MOMS, a support group of mothers who are experiencing difficulty raising their sons, will meet at 5:30 p.m. on Wednesday, June 28, at the Legislature Conference Room.
Ms. Carol Henneman will be the guesst speaker.
For more information call Ms. Fahie at 693-3536 or Ms. Sadler at 693-3618.

An early-retirement incentive bill that caused fireworks in the Senate in March even before it was introduced has now been submitted to the Legislature by Gov. Charles W. Turnbull.
Titled the Public Employees Voluntary Separation Incentive Act of 2000, the bill offers an alternative to a bill sponsored by Sens. Donald "Ducks" Cole, Almando "Rocky" Liburd and David Jones. Government Employees Retirement System board chair Corinne King rejected that measure at a March hearing of the Senate Government Operations Committee.
King said at the hearing that the government couldn't guarantee the $15 million proposed to finance the senators' early retirement program. Ira Mills, director of the Office of Management and Budget, then told the lawmakers that he had a retirement plan of his own which, he said, would cost about $9 million. His announcement was met with astonishment by the senators, who accused Mills of "sabotaging" their proposal.
The bill just now submitted by the governor calls for financing of $15 million from the proceeds of the government's $300 million bond issue last year.
Cole said Wednesday that he, along with Liburd and Jones, met to discuss the new proposal with GERS representatives including King, actuary Howard Rog and executive director Lawrence Bryan, as well as Mills and John deJongh, who chaired the Government House task force that produced a five-year economic recovery plan for the territory.
Liburd said he asked Rog to calculate the number of employees with 25 to 30 years of government service in the system so he could project the cost of the proposal and how best to maximize the $15 million. "We want no unfunded liability," Liburd said.
The senators' proposal, titled the Early Retirement Incentive Act, would allow employees with 25 years of service to "buy" their remaining time toward retirement eligibility by contributing 8 percent of their annuity over the remaining years they would otherwise have to work before retiring. "The purpose of the plan is to reduce the government payroll so employees can retire early without penalty," Cole said.
According to Cole, "The difference between our plan and the governor's is that his plan gives no money to GERS; it goes directly to the employee. Our plan goes to GERS, giving them an infusion in funds so they can invest it." He added, "The governor doesn't want to give any money to GERS."
Liburd said he was surprised that the governor sent down his plan before the figures had gotten back from Rog so that the senators could further evaluate their own plan.
The administration plan addresses only those employees with at least 30 years of service. It would give eligible classified employees a lump-sum payment of 30 percent of their salary to leave service early. Unclassified employees would get 15 percent. The proposal applies only to the executive branch, whereas the senators' plan would cover employees of all three branches of government.
In a letter to Senate president Vargrave Richards, Turnbull said the purpose of his bill is to address the "precarious financial condition" of the government and reduce the government's debt. The governor cited Act 6297 which, among other things, mandated the sum of $15 million from bond proceeds to be used as retirement incentive payments to government employees. "Because the program is cost neutral, it will have no effect on the GERS," he stated.
No legislative hearing has yet been scheduled on either plan. The senators' bill is sitting in the Government Operations Committee; the governor's plan is on Richards' desk.
The governor called a special legislative session for Friday to address a separate retirement proposal addressing the Judges Pension Fund and the Governors and Lieutenant Governors Retirement Fund.

MOMS, a support group of mothers who are experiencing difficulty raising their sons will meet at 5:30 p.m. on Wednesday, June 28, at the Legislature Conference Room.
Ms. Carol Henneman will be the guest speaker. For more information call Ms. Fahie at 693-3536 or Ms. Sadler at 693-3618.

An early-retirement incentive bill that caused fireworks in the Senate in March even before it was introduced has now been submitted to the Legislature by Gov. Charles W. Turnbull.
Titled the Public Employees Voluntary Separation Incentive Act of 2000, the bill offers an alternative to a bill sponsored by Sens. Donald "Ducks" Cole, Almando "Rocky" Liburd and David Jones. Government Employees Retirement System board chair Corinne King rejected that measure at a March hearing of the Senate Government Operations Committee.
King said at the hearing that the government couldn't guarantee the $15 million proposed to finance the senators' early retirement program. Ira Mills, director of the Office of Management and Budget, then told the lawmakers that he had a retirement plan of his own which, he said, would cost about $9 million. His announcement was met with astonishment by the senators, who accused Mills of "sabotaging" their proposal.
The bill just now submitted by the governor calls for financing of $15 million from the proceeds of the government's $300 million bond issue last year.
Cole said Wednesday that he, along with Liburd and Jones, met to discuss the new proposal with GERS representatives including King, actuary Howard Rog and executive director Lawrence Bryan, as well as Mills and John deJongh, who chaired the Government House task force that produced a five-year economic recovery plan for the territory.
Liburd said he asked Rog to calculate the number of employees with 25 to 30 years of government service in the system so he could project the cost of the proposal and how best to maximize the $15 million. "We want no unfunded liability," Liburd said.
The senators' proposal, titled the Early Retirement Incentive Act, would allow employees with 25 years of service to "buy" their remaining time toward retirement eligibility by contributing 8 percent of their annuity over the remaining years they would otherwise have to work before retiring. "The purpose of the plan is to reduce the government payroll so employees can retire early without penalty," Cole said.
According to Cole, "The difference between our plan and the governor's is that his plan gives no money to GERS; it goes directly to the employee. Our plan goes to GERS, giving them an infusion in funds so they can invest it." He added, "The governor doesn't want to give any money to GERS."
Liburd said he was surprised that the governor sent down his plan before the figures had gotten back from Rog so that the senators could further evaluate their own plan.
The administration plan addresses only those employees with at least 30 years of service. It would give eligible classified employees a lump-sum payment of 30 percent of their salary to leave service early. Unclassified employees would get 15 percent. The proposal applies only to the executive branch, whereas the senators' plan would cover employees of all three branches of government.
In a letter to Senate president Vargrave Richards, Turnbull said the purpose of his bill is to address the "precarious financial condition" of the government and reduce the government's debt. The governor cited Act 6297 which, among other things, mandated the sum of $15 million from bond proceeds to be used as retirement incentive payments to government employees. "Because the program is cost neutral, it will have no effect on the GERS," he stated.
No legislative hearing has yet been scheduled on either plan. The senators' bill is sitting in the Government Operations Committee; the governor's plan is on Richards' desk.
The governor called a special legislative session for Friday to address a separate retirement proposal addressing the Judges Pension Fund and the Governors and Lieutenant Governors Retirement Fund.

The owner of the territory's two Plaza Extra supermarkets entered a guilty plea in U.S. District Court on St. Thomas Thursday to charges of employing illegal aliens that stemmed from a raid on the stores and another establishment last summer.
Federal agents raided the supermarkets on St. Thomas and St. Croix last August in an operation staged by the Immigration and Naturalization Service. Plaza Extra owner Fathi Yusef was arrested along with five other persons. At the time authorities said the arrests were part of an investigation into the smuggling of Arab nationals into the United States.
Yusef, a naturalized U.S. citizen who has resided on St. Croix for three decades, pleaded guilty Thursday to three counts of employing illegal aliens.
Four remaining co-defendants — Ali Abu Ahmad, Abu Hussein, Amjad Muhyeddin and Taliai Mustafa — are scheduled to go to trial Monday on charges of conspiracy to smuggle illegal aliens and related charges in each individual case.
The third establishment raided in August was a convenience market in Lindbergh Bay operated by Ahmad, who now operates the Friendly Grocery and Gas Station on Crown Mountain Road.
The early evening swat-style raids reportedly stemmed from the February 1999 arrest in San Juan of two Arab nationals illegally in the country as they attempted to board a commercial airliner bound for Miami. At that time investigators said the pair had been assisted by six other Arabs in making their way to Puerto Rico from St. Maarten.
An INS news release issued the morning following the raids stated that all of those charged were U.S. citizens except for Hussein, who had permanent residency status. It also said that the arrests were related to a scheme whereby illegal aliens smuggled into the territory were "employed in local businesses owned and/or operated by Arab nationals who for an additional fee allegedly would find them spouses to become legal residents." Since that time, federal law officials in the Virgin Islands have been reluctant to provide details concerning the investigation.
On Thursday afternoon, Assistant U.S. Attorney Hugh P. Mabe said Yusef would be sentenced after the proceedings involving the other four defendants are concluded. He declined to comment on the pending trial of the other defendants.

The owner of the territory's two Plaza Extra supermarkets entered a guilty plea Thursday in U.S. District Court on St. Thomas to charges of employing illegal aliens that stemmed from a raid on the stores and another establishment last summer.
Federal agents raided the supermarkets on St. Thomas and St. Croix last August in an operation staged by the Immigration and Naturalization Service. Plaza Extra owner Fathi Yusef was arrested along with five other persons. At the time authorities said the arrests were part of an investigation into the smuggling of Arab nationals into the United States.
Yusef, a naturalized U.S. citizen who has lived on St. Croix for three decades, pleaded guilty to three counts of employing illegal aliens.
Four remaining co-defendants — Ali Abu Ahmad, Abu Hussein, Amjad Muhyeddin and Taliai Mustafa — are scheduled to go to trial Monday on charges of conspiracy to smuggle illegal aliens and related charges in each individual case.
The third store raided in August was a convenience market in Lindbergh Bay operated by Ahmad, who now runs the Friendly Grocery and Gas Station on Crown Mountain Road.
The early evening swat-style raids reportedly stemmed from the February 1999 arrest in San Juan of two Arab nationals illegally in the country as they attempted to board a commercial airliner for Miami. At that time investigators said the pair had been assisted by six other Arabs in making their way to Puerto Rico from St. Maarten.
An INS news release issued the morning following the raids stated that all of those charged were U.S. citizens except for Hussein, who had permanent residency status. It also said that the arrests were related to a scheme whereby illegal aliens smuggled into the territory were "employed in local businesses owned and/or operated by Arab nationals who for an additional fee allegedly would find them spouses to become legal residents."
Since that time, federal law officials in the Virgin Islands have been reluctant to provide details about the investigation.
On Thursday afternoon, Assistant U.S. Attorney Hugh P. Mabe said Yusef would be sentenced after the proceedings involving the other four defendants are concluded. He declined to comment on the pending trial of the other defendants.