Contractor threatens to sue HDC over outstanding payment

Sascha Wilson

One of the contractors hired by the Housing Development Corporation (HDC) to remove garbage and bulk waste from residential units is threatening legal action for almost $.5 million in outstanding payments.

The San Fernando-based contractor, who asked not to be identified, complained yesterday that he has been forced to pay his workers “out of pocket” but has continued providing services through his company, Dirt B Gone Janitorial & Maintenance Services Ltd, despite HDC’s failure to pay him. He claimed other contractors who perform similar services were facing the same problem.

“I am a small contractor and with five workers of minimum wage status. I have to take money out of my pocket to pay them,” he said.

“We have always given 100 per cent and there has never been a complaint about work done. My company has worked throughout the heights and lockdown periods in the frontline of the pandemic, putting ourselves at risk. I have been footing the payment since June 2020.”

Due to his financial burdens, he was forced to apply for a NEDCO grant in June.

“I have had to give up my office space because of not being able to pay the rent. I have to keep staff vehicle and equipment through tremendous strain,” he said.

He said HDC has failed to reply or even acknowledge numerous correspondence he sent over the past few months and attempts to contact them by phone have also been unsuccessful as they go unanswered.

However, he said in August the HDC sent correspondence offering to extend his contract effective September to December at a revised cost of $18,904 per month. He also complained that the HDC has been extending the contract every three months since 2017.

“This doesn’t allow you to be able to obtain an overdraft loan from financial institutions. Lots of other contractors suffer the same fate but are afraid to take action for fear of victimisation.

“We are at the stage where we are unable to meet our financial obligations due to the delinquency of HDC. The line Minister, some time ago, was questioned by the media in respect to the same issue and had promised to look in same, we still waiting,” he complained.

Saying he has no choice but to take legal action, he said on October 29 his attorney sent a pre-action protocol letter to the HDC.

In the letter, attorney Lucina Cardenas-Ragoonanan noted that the total sum owed was $423,904 for the period June 2020 to September 2021 for waste disposal services carried out at the Ridgewood Gardens, Golconda Phase 2 (Golconda) Housing Development. She noted that her client had been paying workers through their personal funds accumulated over the years and which has put them in a financial deficit.

“Whilst my client is indeed appreciative of the employment opportunity given by your good selves, it is a legitimate expectation to be paid for work done and services rendered,” added Cardenes-Ragoonanan.

She indicated that if the outstanding payments were not made within 21 days or in the alternative, some reasonable payment plan be entered into, her client would take whatever legal steps as may be advised.

Guardian Media yesterday reached out to Housing Minister Pennelope Beckles, who indicated that she would forward the information to “the appropriate department to respond accordingly.”

Up to late yesterday, however, there was no communication from the “relevant department.”

Guardian Media also contacted HDC chairman Noel Garcia via Whatsapp Messenger.

Garcia said he would request a report from management, after which he would respond.