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Viewing cable 07PORTOFSPAIN281, COURT OF APPEAL QUASHES CONVICTION OF FORMER P.M. BASDEO

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Reference ID Created Released Classification Origin
07PORTOFSPAIN281 2007-03-22 11:00 2011-08-26 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Port Of Spain
VZCZCXRO2322
PP RUEHGR
DE RUEHSP #0281 0811100
ZNR UUUUU ZZH
P 221100Z MAR 07
FM AMEMBASSY PORT OF SPAIN
TO RUEHC/SECSTATE WASHDC PRIORITY 8015
INFO RUCNCOM/EC CARICOM COLLECTIVE
UNCLAS PORT OF SPAIN 000281 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR WHA/CAR 
 
E.O. 12958: N/A 
TAGS: PGOV KCRM KCOR KJUS TD
SUBJECT: COURT OF APPEAL QUASHES CONVICTION OF FORMER P.M. BASDEO 
PANDAY 
 
REF: A. POS 00200, B. POS 00411, C. POS 00253, D. POS 00505 
 
1. (SBU) SUMMARY: On March 20, Court of Appeal Judge Margot Warner, 
quashed the conviction and sentence pending against former Prime 
Minister and current interim Political Leader of the United National 
Congress (UNC) Basdeo Panday.  Warner ordered a retrial for reasons 
of a possible conflict of interest on the part of the presiding 
Chief Magistrate Sherman McNicolls.  The retrial will be presided 
over by a different Magistrate.  This decision frees Panday to 
contest his old seat in this year's parliamentary elections and, 
party willing, to resume his role as Leader of the Opposition.  The 
taint of corruption around him remains, however, and should keep the 
opposition split, possibly leading to a larger victory for the 
ruling PNM.  END SUMMARY 
 
2. (U) Yesterday's not unforeseen developments stem from the failed 
criminal prosecution attempt against Chief Justice Satnarine Sharma 
on March 5, 2007, when Chief Magistrate Sherman McNicolls (who 
presided over the Panday case) refused to be cross-examined.  In the 
Sharma case, McNicolls was the prosecution's key witness since he 
alleged Sharma had attempted to pressure him to return a not guilt 
verdict against Panday on April 24, 2006.  The Sharma case unraveled 
when McNicolls, for reasons not entirely clear, refused to be 
cross-examined in public. 
 
3. (U) A possible reason for McNicolls' refusal to testify and for 
his conflict of interest is his involvement in a suspicious land 
transaction at the time of the Panday trial that involves financiers 
close to both major parties. 
 
4. (U)  As a result of McNicolls' actions, the Court of Appeal ruled 
yesterday that sufficient evidence existed to conclude that there 
was a real possibility that McNicolls was biased.  Upon leaving the 
courtroom, Panday was quoted as saying he felt vindicated by the 
ruling and that both he and his team of lawyers intended to appeal 
the retrial verdict. 
 
----------------------------------- 
BACKGROUND ON OVERTURNED CONVICTION 
----------------------------------- 
 
5. (U) Basdeo Panday was found guilty on April 24, 2006, on three 
counts of knowingly making false declarations of income and assets 
to the Integrity Commission in 1997, 1998, and 1999.  As a result, 
he was ordered to forfeit 266,000 USD of his holdings in a foreign 
account and pay 10,000 USD in fines while being sentenced to two 
years in jail.  The jail sentence precluded his return to Parliament 
and his seat was eventually declared vacant.  No longer an MP, 
Panday had to relinquish the role of Leader of the Opposition to his 
hand selected replacement, UNC MP Kamla Persad-Bissessar. 
 
 
6. (SBU) COMMENT: It seems the first ripples are finally starting to 
be felt from the collapsed March 6, 2007 criminal prosecution case 
against Chief Justice Sharma.  Without question, the Court of Appeal 
ruling served as a booster shot for the beleaguered UNC and its 
overall political image.  The chief political implication from 
yesterday's outcome is that Panday's victory has paved the way for 
him to resume his position as political leader of the UNC and 
contest his Couva North seat in the general elections due sometime 
this year. 
 
7.  (SBU) Panday's continued strong grass roots support in a heavily 
UNC district indicates that should he run, he would win the Couva 
North seat again.  If he is not convicted in the retrial or in 
another corruption trial beginning in June, and this is a big if, 
then he should have no problem resuming his role as leader of the 
UNC and hence of the opposition.  Panday's lingering association 
with corruption, however, will likely make him anathema to all but 
his fervent bloc of supporters.  His return to the political fray 
could actually further split the opposition vote in T&T and possibly 
hand the PNM an even larger victory than expected. END COMMENT. 
 
AUSTIN