Latest update April 19th, 2024 12:59 AM
Dec 04, 2022 News
Kaieteur News – The operators of the fuel tanker, MV Tradewind Passion that slammed into the Demerara Habour Bridge (DHB) causing more than $1B in damages on October 8, 2022 were not required to deposit $250M in cash before the ship departed Guyana, attorneys representing the operator said.
Last week, Kaieteur News reported that three workers of the Demerara Harbour Bridge (DHB) were sent on leave pending an investigation into how the Panamanian oil tanker that crashed into the Bridge has left Guyana without paying up.
Minister of Public Works, Juan Edghill said that the vessel, MV Tradewind Passion which was detained to facilitate an investigation and subsequently released as a result of a court order failed to lodge $247.4M.
The vessel was detained after the collision caused extensive damage to critical components of the DHB, which not only left it inoperable but resulted in thousands of passengers and tons of agricultural produce stranded on both sides of the Demerara River.
However, contrary to Minister Edghill’s statements, the operators’ lawyers attached to the Cameron and Shepherd Law Firm said there was no requirement for a deposit. The Law Firm said that an application was made to the Court for the vessel’s release on the security of a Letter of Undertaking (LOU) by the insurers for approximately $250M.
“The LOU is an internationally recognized guarantee that is accepted for the release of ships under arrest or by agreement of the parties when an accident occurs. The sum of two hundred and fifty million guaranteed is arrived at on the basis of a formula set out in the Shipping Act which is itself based on an international convention subscribed to by the Government of Guyana,” the attorneys explained in a letter to the editor.
The attorneys said that in ordering the release of the ship, the Court accepted the deposit of the LOU with the Registrar.
“No order was made for a deposit of cash. If such an order was sought by the Demerara Harbour Bridge, we are confident that the court would have rejected it. Therefore, the statement of the Hon. Minister bemoaning the release of the ship without the deposit of cash had to have been made without legal advice,” they said.
The letter continued: “The failure of Maritime Administration to release the ship would have opened the staff of Maritime Administration to contempt of court proceedings and potential imprisonment if found liable,” they reasoned.
It was noted that maritime laws of ancient vintage exist in relation to accidents involving ships.
According to the lawyers, those laws provide for the release of ships when arrested as a result of an accident upon the lodgment of security.
“Every court will do so once it is satisfied that appropriate security, in modern shipping practice, an LOU, is lodged,” they said.
The Cameron and Shepherd Law Firm said the shipping laws exist all over the world and facilitate the stability of international shipping.
“The Government cannot defy those laws and detain a ship when an accident occurs if the court orders its release. If it continues to do so, as it has done in the past, ships will no longer come to Guyana or shipping fees will escalate to unheard of proportions,” the lawyers cautioned.
Where is the BETTER MANAGEMENT/RENEGOTIATION OF THE OIL CONTRACTS you promised Jagdeo?
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