THE SPORT Company of TT (SporTT) is still pursuing its claim of negligence against its former CEO and 13 ex-board members arising out of the failed LifeSport programme and a $34 million contract to eBeam Interact Ltd.
On September 10, the trial began before Justice Ricky Rahim in a hybrid hearing at the Waterfront Judicial Centre, Port of Spain, and virtually.
SporTT’s corporate secretary Arlene George was the first witness in the hot seat and was cross-examined extensively by Senior Counsel Fyard Hosein and Jagdeo Singh, who represent two of the ex-directors.
SporTT’s claim of negligence is against its former CEO John Mollenthiel and ex-directors Sebastian Paddington, Chlea Lamsee-Ebanks, Reynold Bala, Morris Blanc, Nisa Dass, Anly Gopeesingh, Sabrenah Khayyam, Cheemattee Martin, Matthew Quamina, Annan Ramnansingh, Kent Samlal, Harnarine Seeram Singh and Milton Siboo.
In May 2023, the Appeal Court gave SporTT the green light to pursue the negligence claim over the failed LifeSport programme and the relief for the repayment of $34 million to eBeam Interact Ltd for literacy and numeracy services.
This followed a ruling by Rahim in November 2022 which struck out a major portion of SporTT’s lawsuit because “it could not be sustained in the absence of proof of actual loss or damage.”
He also struck out a claim for equitable compensation of $34 million which SporTT was seeking, concerning the eBeam contract signed by the former board in June 2013.
What was left for the trial was the allegation of breach of fiduciary duty. The Appeal Court overturned this.
On August 21, SporTT was successful in its claim for restitution against eBeam for the failed $34million contract.
SporTT brought both cases after the programme was shut down by then-prime minister Kamla Persad-Bissessar in July 2014. It claimed it should be reimbursed the $34 million it paid to eBeam and its now-deceased owner Adolphus Daniel to administer the numeracy and literacy and interactive technology components of the occupational skills training aspect of the programme.
It alleged that eBeam did not provide the services for the programme, which aimed to transition unemployed young men to responsible adulthood by providing sport training, occupational skills training and job placement.
It also claimed Mollenthiel and the former board members should be held liable for entering into the contract.
In her judgment, Justice Eleanor Donaldson-Honeywell rejected SporTT’s claims for breach of contract, as she pointed out that the contract did not sufficiently identify the services eBeam was required to perform.
However, she ruled that SporTT was entitled to restitution, as eBeam only provided nominal services, including procuring equipment valued at $4 million.
As part of the case, SporTT also claimed eBeam was overpaid, as the contract was for providing services at 38 centres, when in fact there were only 33 such locations.
While the judge upheld that aspect of the case, she said it was not entitled to an additional $4,473,684.20 in co
