Covering up an Act of Fraud

EXCERPTS FROM SKERRIT’S STATEMENT ON THE GARBAGE BIN SCANDAL

June 02, 2009

“Following the inquiries which I requested, I have been advised that the shipment of the residential garbage bins delivered to the Roseau City Council do not meet the expectations of the government. Much larger bins with wheels and secure covers were expected. Accordingly, the Secretary to the Cabinet wrote Logistical Supply Solutions INC (LSS) and it has been agreed that LSS will compensate the government of Dominica. I will read the exchange of correspondence which explains the basis and terms of compensation and consequential commitment of reimbursement.

“The letter from the office of the prime minister dated May 28th, 2009, reads:

Dear Sir

As you are aware the Office of the Prime Minister has already written to you regarding the shortage with respect to the shipment of garbage bins and you responded accordingly. I also wish to advise that the shipment of residential of garbage bins shipped by your company does not meet the expectations of the government of Dominica. We expected larger bins. Grateful for your urgent action on this matter please.

Yours Sincerely

Felix Gregoire

Secretary to the Cabinet

“The letter from LSS dated June 01, 2009 reads:

Dear Cabinet Secretary:

This correspondence serves to confirm our acceptance that the shipment of residential garbage bins shipped by us to Dominica was not consistent with what was expected by the city council or government and that a reimbursement or compensatory mechanism is required. If the client is not happy with the shipment or product supplied then it is my responsibility as the supplier to do something about it.

Accordingly, I am offering to have the shipment valued at the known market price plus 10% service charge and other expenses such as freight and assurance. I will deduct this net cost from the funds that were wired to my company by the Government of Dominica and shall reimburse the government of Dominica the balance within fourteen working days.

Also kindly let me know the government’s position in relation to the bins which were short shipped. I need to know whether they are still required or whether a refund is required in relation to these.

I hope that this will help to remove any concerns or uncertainty which may exist over this transaction. Please convey to the members of the council and to the government of Dominica my sincere regret at any embarrassment or inconvenience this matter may have caused.

Yours faithfully,

Andre Dopwell

Senior Manager

NOTES:

The letter from the Cabinet Secretary Felix Gregoire to Andre Dopwell dated May 28th, 2009 came one day after Mr. Gregoire was asked by the Prime Minister to investigate the matter.

The Prime Minister indicated on June 2nd, 2009 that the investigations revealed a three-fold problem with the bins:

“Much larger bins with wheels and secure covers were expected.”

The letter from the Cabinet Secretary:

1. Addressed only the size of the bins but gave no indication what size would have been preferred instead of the 32 Gal item that was supplied;
2. Raised no issue with respect to the cost of the bins; and
3. Made no request for a refund

The bins received by the Roseau City Council were completely sold out by May 29th, 2009.

In his letter dated June 1st, 2009, Mr. Dopwell volunteers a refund of the amount transferred to his account for the bins over and above the market price less “10% service charge and other expenses such as freight and assurance.”