HGP Nightly News – The Government is now free to take possession of two hospital construction sites and associated equipment after the Full Court overturned five preservation orders previously granted in favour of contractor VAMED Engineering GmbH.
The ruling, handed down on September 22, follows an appeal by the Attorney General in the dispute surrounding the terminated contracts for the Georgetown Paediatric and Maternal Hospital and the New Amsterdam Hospital Campus.
Chief Justice Navindra Singh and Justice Zamilla Ally-Seepaul set aside orders that had restricted access to the sites and prevented interference with 52 containers and equipment at the Georgetown project.
The orders had also required the Ministry of Health to preserve contractors’ documents, designs, plans and intellectual property.
In overturning them, the Full Court found that the preservation orders could not stand after the trial judge had already refused the substantive conservatory and restraining orders sought by VAMED.
The judges said the preservation orders were inconsistent with the earlier findings and that their legal foundation had not been adequately established.
The Court also found that Section 16 of the State Liability and Proceedings Act prohibits injunctions against the State in proceedings of this nature.
According to the ruling, that restriction could not be bypassed simply by describing measures controlling the State’s conduct as “preservation orders.”
The Court further found that the orders lacked the necessary statutory foundation under the Arbitration Act 2024.
It also pointed to the earlier finding that there was no urgency and that damages would provide an adequate remedy.
However, the underlying contractual battle is not over.
The High Court’s decision to refer the dispute between VAMED and the Government to arbitration remains in place.
Its earlier refusal to grant VAMED conservatory and restraining orders also remains undisturbed.
The Attorney General was awarded $500,000 in costs.
The Attorney General’s Chambers said the ruling means the Ministry of Health can now take possession of the hospital sites, containers, equipment and construction materials and proceed with the projects.
