The Tribune

CLARIFICATION: The article “Builder defends $20 million contract” published in The Tribune on Monday stated that government hired builder Rev Lloyd Smith and his construction firm Holiday Industrial Builders International (HIBI) pocketed $10 million in an arbitration process that followed the termination of a contract in 2008 to build what is now the Attorney General’s office on John F Kennedy Drive. We have been asked to make clear that Rev Smith carried out work on the building under a contract that was valued at $14 million and at the time of the termination, had only completed work worth $10 million. He was awarded nearly $700,000 at the conclusion of a legal arbitration battle with the government.

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

GOVERNMENT-hired builder Rev Lloyd Smith has defended his construction firm Holiday Industrial Builders International (HIBI) insisting that during the arbitration process, which followed a “politically motivated” contract termination, he pocketed nearly $10 million as there was no evidence that his work did not meet coding standards.

Speaking publicly for the first time in the face of a wave of criticism that has called into question his ties with Minister of Labour and National Insurance Shane Gibson and speculation over why HIBI’s contract was terminated in 2008 under the Ingraham administration, Rev Smith said it is time the assaults on his character come to an end.

While admitting that he and Mr Gibson are “friends”, Mr Smith said the relationship had no influence over the awarding of his latest contract to construct a $20m building at John F Kennedy Drive which is expected to house the Ministry of National Security. The contract was awarded by the National Insurance Board.

Rev Smith’s words followed Free National Movement (FNM) MP Hubert Chipman’s assertion to The Tribune on Tuesday that the contractor and Mr Gibson appeared to have close ties. Mr Chipman noted that Rev Smith officiated at Hollywood star Anna Nicole Smith’s funeral and that of Mr Gibson’s father, “King” Eric Gibson.

Mr Gibson resigned his post as immigration minister in 2007 amid allegations he fast-tracked Ms Smith’s application for residency in the Bahamas.

Rev Smith said he could not understand the public backlash and criticism over the government awarding his firm a contract because during the FNM’s last term in office, he did not receive any work or major contracts.

“Minister Gibson is my friend,” Rev Smith said. “But I am saying it has nothing to do with the contract I was awarded. I do support the Progressive Liberal Party and I suppose they will put me on the list for any job. That doesn’t mean that I will or won’t get the job.

“What happened when certain other companies got contracts for government facilities? No one said anything. But because I am black or I am PLP they are saying this stuff? I supported the FNM at one time too, but that didn’t go so well. I am just trying to figure out what is wrong.”

“This last contract, I won it in a fair process,” Rev Smith added. “I don’t think it is fair what they are trying to do to me. Yes I officiated at funerals for King Eric and Anna Nicole. But what do you want me to do? I am a minister, it is my job to bury people. King Eric was a founding member of Mount Horeb Baptist Church in Sandy Port where I pastor. He donated the first materials and things we had when the church first started: was I not supposed to bury him? As for Anna Nicole, she visited the church numerous times and I christened her baby. Again was I not supposed to give her funeral?”

Last week Mr Chipman also questioned the legitimacy of Rev Smith’s Bahamian citizenship.

When asked about doubts over whether he was Bahamian, Rev Smith said: “That is the first time I’ve ever heard that. I am just as much Bahamian as anyone else walking around here and just as much as Chipman.”

He continued: “All of these things I see being carried around in the media I think they are nonsense. First of all, I went in a fair competition in 2004 for that building on JFK. I don’t know what all of this is about. I would say that my work was 95 per cent complete, although they said it was 85 per cent complete. They cancelled the contract so I went into arbitration and I won the case; they had to pay me. Altogether I got just shy of $10 million for that job. And never was there any mention of shoddy work.

“But I know that them terminating my contract was politically motivated. They did that while I still had $4 million left on the contract to go. And then turned around and gave someone else another $8 million contract.

In May, Rev Smith’s attorney Kelphene Cunningham told The Tribune that HIBI walked away from arbitration with just under $700,000.

“It was determined that the contract was terminated without cause. We won, all of the materials in storage were returned to the government and we got our money. And that is the end of the matter,” Ms Cunningham said at the time.

On Wednesday in a press statement, NIB’s Director Rowena Bethel said a strict tender process was followed before engaging the services of HIBI to construct the building on JFK Drive. She said the process was detailed and diligent and “consistent” with current industry rates for similar construction.

According to Ms Bethel, four contractors were invited in a pre-qualification process with a view to determining who would be awarded the contract to construct a building for the Ministry of National Security which would be a replica of the building that currently houses the Offices of the Attorney General.

The companies included Pyramid Construction Company Limited, Ranmar Precision Development Company Limited, Buildex Construction Company Limited and HIBI.