COURT OF APPEAL QUASHES CONVICTION OF FORMER P.M. BASDEO

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.

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BACKGROUND ON OVERTURNED CONVICTION
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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