Embattled Town Clerk, Royston King, today admitted to the Commission of Inquiry looking into the City Council, that a company which is owed millions of dollars for completed works for the City Council, had no written contract.
The company, XL Engineering, has claimed that it is owned over $150 million for completed clean-up works.
Questioned about the contract existing between the Council and the company, Town Clerk Royston King said there was never a written contract, but an agreement that was verbal.
Mr. King told the CoI that he learnt of the company through late Chairman of the Finance Committee, Junior Garrett.
He claimed that together with the City Treasurer and the late Chairman of the Finance Committee, they entered into a verbal agreement for the company to execute various works for the Council.
The Commission’s Chairman, Justice Cecil Kennard, appeared flabbergasted by the revelation and questioned the Town Clerk repeatedly about whether he did not find it unusual that an agreement would be entered into with a private company for over $100 million in works, and there would be no signed contract or written contract.
“There was a verbal agreement”, King reiterated.
The Chairman also questioned him about whether there was any source document for the payment of the contractor.
King said as far as he was aware, there was none.
However, he said there would be an assessment of the completed works by the City Engineer department before payment was done.
The payment would be made, according to King, once approved by the City Treasurer.
Justice Kennard said he simply cannot believe that the Town Clerk and other officials would enter into a “word of mouth” agreement that is worth millions of dollars.
Several times during his appearance this morning, the Town Clerk dodged questions by saying he could not recall details of various transactions with contractors.
At one point, when quizzed about another contractor, he said he knew of the contractor, but was unaware of any agreement or contract with that company and therefore would be unable to say whether the company might be owed.
For some other contractors, who may be making financial claims, King said he cannot recall whether they would have received any payments.
The Commission of Inquiry is looking into the operations of the Georgetown City Council. King has found himself coming under criticism at the Commission over his management at the Georgetown City Council.