Matrix International Defaults

Published 29th November 2007, 11:52am

Matrix International Ltd, the company contracted for removal of scrap metal from the George Town Landfill, has defaulted on its obligations, and efforts are underway for a solution to problems left behind.

"The Government is still searching for the best way forward in order to satisfy all interested parties, including the aggrieved subcontractors, the government - and by extension the people of this country - and the shareholders of Matrix International," Works Minister Hon. Arden McLean told the Legislative Assembly yesterday (28 November).

Responding to questions and making a statement on the default of the company, Mr McLean said his ministry temporarily suspended Matrix's operations on 2 November owing to that company's continuous failure to make fee payments.

The Central Tenders Committee awarded Matrix the contract to extract scrap metal and other waste from the landfill and ship it overseas for reprocessing, while paying government a total of $1.2 million for materials removed. The one-year deal was signed in March 2007.

"A total of $310,000 has been received from Matrix International towards the overall contract total of $1,250,000," the Minister said. He further explained, "Therefore, an amount of $940,000 as per the contract is still outstanding."

He said that following a series of missed payments, the company was notified that a late payment fine of $500 per day was being applied.

Stressing that government has no desire to interfere in the running of any private enterprise, Mr McLean said that although Matrix was delinquent in its fee payments efforts were made to ensure that subcontractors to the company were first receiving their monies due.

"I cannot enumerate the many times either, myself or the staff of the ministry, queried the management of Matrix International Ltd on whether the subcontractors working along with them were being looked after, that is were being paid regularly," Mr McLean said.

He said that the welfare of the subcontractors was the only other concern of government in addition to fees due and the need to remove material from the landfill.

"The ministry staff and I are currently in discussions with the principals of Matrix International Ltd in an effort to assist with alleviating some of the difficulties they are experiencing in order to get this contract back on track," Mr McLean told the House.

Mr McLean also made clear that contrary to some media reports, Matrix International Ltd is fully incorporated as a local company with Caymanians holding 60 per cent ownership.