Philip M. Bethel and Darrell Rolle, who were Ministers responsible for Bahamasair in the late 1980’s and early 1990’s, are being accused of being a part of a conspiracy against a Canadian aviation company.
The plaintiffs in the matter, Aviaco International Leasing Incorporated and Furlong International Limited, claim that as a result of a conspiracy involving Bethel, Rolle and several others, they lost the benefit of a contract with Bahamasair which ruined their business.
The plaintiffs are seeking $5 million in punitive damage from the defendants.
These companies, headed by a Mr. Dobbin, claim that they lost $150 million.
The Superior Court of Justice of Ontario applied to The Bahamas Government for “letters of request” to take evidence in The Bahamas from Mr. Bethel, Edward Williams and Frederick Murray, who are also defendants in the matter.
Former Supreme Court Judge Joseph Alfred was appointed by the Canadians to take evidence on their behalf.
This matter arises from the evidence produced before the Commission of Inquiry into Bahamasair held in The Bahamas in 1995.
At that time, the Commission recommended that an investigation with a view to the prosecution of Messrs Bethel, Rolle, Williams and Murray be conducted in respect to the disposition of the commission paid by Boeing De Havilland on the sale of Dash-8 aircraft to Bahamasair.
According to information produced for the Canadian court, Bahamasair agreed to buy aircraft from Boeing in 1989. Boeing, however, could not deliver on the order before 1991. But Bahamasair needed the aircraft before that time.
The national flag carrier then leased aircraft from Aviaco International for two years. However, Aviaco could not raise the money to buy the aircraft.
Bahamasair then entered a 10-year lease with Aviaco in order for Aviaco to secure the money for the purchase.
When Boeing produced the aircraft for Bahamasair, Aviaco complained that Bahamasair had a 10-year lease with their company. Boeing wanted Bahamasair to buy five aircraft, but Aviaco told Bahamasair that it could not buy five aircraft from Boeing because Bahamasair had a 10-year lease with Aviaco.
At the end of the day, Boeing and Aviaco arrived at a settlement where Bahamasair would lease two aircraft from Aviaco and buy five from Boeing.
Mr. Dobbin, of Aviaco, then arrived at a settlement with Boeing and Bahamasair.
After the Commission of Inquiry in The Bahamas, when the issue of bribery arose concerning the purchase of Dash-8 aircraft, Mr. Dobbin, accused the defendants of conspiracy against him.
He started an action in Florida which was thrown out of court. He was, however, advised to take action against the defendants in Canada or The Bahamas, so he chose Canada.
Other defendants in this matter are Boeing Canada Inc.; Bahamasair, David Johnson, former general manager of Bahamasair; Sovereign Aircraft Limited; Duncan Rapier, a Canadian citizen residing in Miami who was a consultant for the purchase of the aircraft; and Famona Trust Ltd.;
Evidence from the Commission of Inquiry shows that on the sale of the three Dash-8 aircraft to Bahamasair, Mr. Rapier stated that a total of $1,140,000 was paid as commission.
This amount was credited by Boeing De Havilland to Sovereign’s bank account in the Cayman Islands. Of this sum $786,000 was transferred through various banks to two company accounts in Nassau which were controlled by one or both of the principals of Famona.
The first payment of this $786,000, a sum of $412,000, was sent from Barclay’s Bank PLC, Grand Cayman to Barclays Bank in Nassau on or about 16 December, 1991.
The Commissioners said that they were satisfied that the contract entered into by Boeing De Havilland and Sovereign was for the corrupt purpose of passing on a bribe to any person in The Bahamas whose duty it was to decide on the acquisition of aircraft for Bahamasair.
The evidence is being taken in the Rum Runner’s Room of the Radisson Cable Beach Resort.
The Hon. Paul Adderley is representing Mr. Bethel and Mr. Rolle and some of the other defendants have already produced affidavits in Canada.
The Bahama Journal
