debut: 2/16/17
39,950 runs
CEPEP CEO: I was pressured by Al-Rawi to extend contracts without Cabinet approval
In a significant development in the CEPEP court case, Chief Executive Officer Keith Eddy has claimed he was pressured by former Local Government Minister Faris Al-Rawi to approve the mass renewal of contractor contracts—without Cabinet approval—just days before the April 28 general election.Eddy, in a sworn affidavit filed on July 17, said such a move was unprecedented during his nine-year tenure at the state-owned company. He is also challenging an affidavit by former CEPEP chairman Joel Edwards, who denied that Cabinet approval was required—or obtained—for the extension of 336 contracts. Edwards had previously stated that a board note referencing Cabinet approval was inaccurate. He claimed he had ordered a revised version of the note but could not locate a copy in his records.
Eddy has disputed that claim, accusing Edwards of misrepresentation.In his affidavit, Eddy said the proposed contract extensions would have cost the state an estimated $1.4 billion, and, given the scale of the expenditure, prior Cabinet approval was necessary—particularly since the contracts were to be extended for up to three years, not just one.He said his caution was influenced by a May 2024 accusation that CEPEP had engaged in unjustified and uncontrolled spending without proper consent. According to Eddy, the Central Audit Committee of the Ministry of Finance had allegedly uncovered and reported “major discrepancies.” Eddy said he informed Edwards that he would not proceed with a blanket extension of contracts without Cabinet approval. He also claimed he refused to engage with an individual described as Al-Rawi’s “right-hand man,” who had allegedly sought to facilitate the process.
“I felt as if I was being pressured into extending the contracts without Cabinet approval, despite my expressed view that this was necessary,” Eddy said.“Once Cabinet approval was granted, I would have had no difficulty in implementing the decision.” He argued that since CEPEP is fully state-owned, committing $1.4 billion without proper authorisation would have been unethical, if not illegal.“It would obviously be unreasonable for such a transaction to proceed without the government having any knowledge of it, because of the implications for the national budget,” he stated.Eddy further claimed that in the run-up to the general election, he came under “intense pressure” from Al-Rawi and others to add new contractors and assist certain companies.
In a significant development in the CEPEP court case, Chief Executive Officer Keith Eddy has claimed he was pressured by former Local Government Minister Faris Al-Rawi to approve the mass renewal of contractor contracts—without Cabinet approval—just days before the April 28 general election.Eddy, in a sworn affidavit filed on July 17, said such a move was unprecedented during his nine-year tenure at the state-owned company. He is also challenging an affidavit by former CEPEP chairman Joel Edwards, who denied that Cabinet approval was required—or obtained—for the extension of 336 contracts. Edwards had previously stated that a board note referencing Cabinet approval was inaccurate. He claimed he had ordered a revised version of the note but could not locate a copy in his records.
Eddy has disputed that claim, accusing Edwards of misrepresentation.In his affidavit, Eddy said the proposed contract extensions would have cost the state an estimated $1.4 billion, and, given the scale of the expenditure, prior Cabinet approval was necessary—particularly since the contracts were to be extended for up to three years, not just one.He said his caution was influenced by a May 2024 accusation that CEPEP had engaged in unjustified and uncontrolled spending without proper consent. According to Eddy, the Central Audit Committee of the Ministry of Finance had allegedly uncovered and reported “major discrepancies.” Eddy said he informed Edwards that he would not proceed with a blanket extension of contracts without Cabinet approval. He also claimed he refused to engage with an individual described as Al-Rawi’s “right-hand man,” who had allegedly sought to facilitate the process.
“I felt as if I was being pressured into extending the contracts without Cabinet approval, despite my expressed view that this was necessary,” Eddy said.“Once Cabinet approval was granted, I would have had no difficulty in implementing the decision.” He argued that since CEPEP is fully state-owned, committing $1.4 billion without proper authorisation would have been unethical, if not illegal.“It would obviously be unreasonable for such a transaction to proceed without the government having any knowledge of it, because of the implications for the national budget,” he stated.Eddy further claimed that in the run-up to the general election, he came under “intense pressure” from Al-Rawi and others to add new contractors and assist certain companies.
- edited -
