Latest update March 28th, 2024 12:59 AM
Sep 21, 2014 News
The contract for the construction of the Amaila Falls Access Road that was awarded to Makeshwar ‘Fip’ Motilall’s
Synergy Holdings Inc was terminated. However, to date, the Guyana Government is yet to recover the US$1.5M Mobilisation Bond he had posted with Hand in Hand.
Motilall’s performance bond expired in July 2011 and a replacement bond was not reinstituted. The bond was negotiated and brought into force when the contract with Motilall’s Synergy Holdings was signed in January 2010, for an eight-month duration.
That meant that for the latter half of 2011, Synergy Holdings Inc. was operating with an expired bond, pursuant to its stipulations.
The bond did carry a stipulation that claims could be made for six months following its expiration. Government did lay claims prior to the deadline, but the claim did not mean automatic payment.
Hand-in-Hand had also issued a mobilization bond to Synergy Holdings, but that too expired.
Hand-in-Hand in its financial report for the company in 2010 had listed under Contingent Liability, the Amaila Falls Hydropower Road project.
In that report it was stated that the Government of Guyana had granted to contractor, Synergy Holdings Inc., the authority to construct the road to Amaila Falls and the Transmission Line Clearing Project.
It said that on March 31, 2010, Hand-in-Hand on behalf of Synergy Holdings Inc., issued advance Mobilisation and Performance Bonds totaling US$1,540,000 each.
“At the onset, these bonds were collaterized by a guarantee from WM Fogarty’s Ltd to the extent of US$500,000 for the initial four-month period.”
The Financial Report for Hand-in-Hand also said that the, “Advance Mobilisation Bond which expired on November 18, 2010, had since been released by the Government of Guyana.”
It further states, “The Hand-in-Hand Mutual Fire Insurance Company Ltd remains responsible for the current performance bond, which is to be secured by counter guarantees in the form of; Escrow Account to the extent of US$500, 000; Debenture on the machinery/equipment for the difference.”
Hand-in-Hand in an official announcement following the termination of the contract had stated, “The position of an insurance company with regard to any insurance policy or claim is strictly confidential and would not be disclosed by the insurance company unless required by law or legal process.”
The insurance company had also stated that “if a claim is made under a performance bond, it goes through our claims verification and investigation process…This process is performed in respect of each and every claim regardless of size.”
Large claims are submitted to the Board of Directors of Hand-in Hand for its consideration.
“The Hand-in-Hand is very happy to settle any claim it is determined to be liable to pay.”
The formal announcement that Hand-in-Hand was issuing the bond came during intense scrutiny of Synergy Holdings and Motilall’s ability to complete the road, just one month after inking the contract.
It was at that time that Executive Director of NICIL, Winston Brassington, along with his Deputy, Marcia Nadir-Sharma, and Finance Minister Dr Ashni Singh, hosted a press briefing to quell the brouhaha that followed the announcement by Bharrat Jagdeo that Synergy Holdings Inc, headed by Motilall, had secured the contract.
Brassington at that time told media operatives that there need not be any worries given that there were safeguard measures in place to ensure that Government receives what is being tendered for, hence the mobilization and performance bonds.
It took more than two years of intense media scrutiny and exposure coupled with the then imminent failure on the part of Motilall before the Government moved against him and terminated the contract.
THIS IDIOT TELLING GUYANA WE HAVE NO SAY IN THE 50% PROFIT SHARING AGREEMENT WE HAVE WITH EXXON.
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