Legal battle looms - NWC prepares case against Magil Construction
May 11, 2006
THE NATIONAL Water Commission (NWC) says it is preparing to sue Magil Construction Jamaica Company Limited and its affiliate, Magil Palms Ltd., for alleging that, in 2004, one of its senior officers accepted a bribe to the tune of $100,000.
A senior NWC representative, who requested anonymity, said late yesterday that the company would be pursuing legal action against Joseph Gustadt, president and chief executive officer of both construction companies.
"It is being treated seriously and we will be pursuing the matter legally," the representative emphasised.
Additionally, the senior officer at the NWC, who Mr. Gustadt said attempted to extort an additional $500,000, which was not paid, told The Gleaner/Power 106 News Centre yesterday that he, too, had started legal action into the allegations.
However, an unflinching Mr. Gustadt dared the companies and individuals he criticised to sue him. "With pleasure, I challenge them to do that," he said while speaking from Israel.
In a detailed statement and background report released to the media, Mr. Gustadt criticised the business practices of representatives of the NWC, the National Environment and Planning Agency (NEPA), the St. Catherine Parish Council and "political parties". He alleged that the bribery demands and other corrupt practices cost his company in excess of $124 million.
The statement also pointed out that the Magil companies have ceased operations in Jamaica, claiming they were forced to leave the country because of the corrupt practices of Government officials.
"The company could no longer accept the losses that we were suffering as a result of the unjustified and malicious actions of bribe-seeking government officials," said Mr. Gustadt in his statement. "In my entire career, which spans over 30 years, four continents, and over US$1.5 billion of construction projects, I have never experienced the kind of corruption and self-defeating incompetence that I've seen here in Jamaica."...
Author: Tyrone Reid
Source: Jamaica Gleaner
