Latest update April 24th, 2024 12:59 AM
Nov 15, 2015 News
More than five years after the Government of Guyana and the Export-Import Bank of India signed a US$4M credit agreement for the acquisition, installation and commissioning of 14 large drainage pumps to ease coastal flooding, there is
disclosure that the Indian contractor was fired since last year.
The good news is, according to the recently tabled report of the Auditor General for 2014, that all the pumps – eight fixed and six mobile units- have been received and installed at 14 locations.
But problems with the contract are far from over with State auditors recommending that the Ministry of Agriculture move to bring closure to the matter.
The contract had been a troubled one with little information coming out about the arrival of the pumps. The previous administration, whose two-decade rule ended in May, had also disclosed that it had embarked on building a number of additional pump stations, and buying pumps from local suppliers as well, causing more confusion about the locations.
According to the audit report, on February 15, 2011, the National Board of Procurement and Tender Administration gave approval for 28 suppliers to be shortlisted for the supply and installation of fixed and mobile drainage pumps.
However, only two tenders were eventually submitted to the National Board of Procurement and Tender Administration.
As of September, some US$2.991M was paid to the contractor, Surendra Engineering Corporation Limited (SECL). The contract was subsequently terminated in October 2014.
SECL was the same company that was fired last year for failing to deliver on the Specialty Hospital at Turkeyen, East Coast Demerara.
SECL has left the country but the Government of Guyana has been granted a $1B court judgment for that Specialty Hospital project.
With regards to the US$4M contract for the pumps, SECL was paid US$126,000 for the spares. While the contractor claimed that it has supplied the spares, auditors could find no evidence of any.
The Agricultural Ministry, in response to queries from the Audit Office, claimed that the sum of US$126,000 for spares was approved by the Finance Secretary on recommendations from the National Drainage and Irrigation Authority (NDIA), an agency of the ministry which was overlooking the pump project.
SECL’s contract was terminated effective October 8th, 2014 after the contractor failed to request and obtain approval for an extension of time. The contract period had ended April 30, 2013.
SECL was also fired for failing to extend advance payment guarantee and performance security and to supply spares for which payment was recommended and subsequently disbursed.
The Auditor General report said that the percentage and value of the contract completed was 80 per cent or US$3,215,875 respectively.
Following the termination of the contract, the Government of Guyana spent US$589,400 to complete the works.
SECL is claiming US$368, 728 but Government said the contractor is only owed US$224,728 and that there is no evidence it delivered any spares despite being paid.
The PPP/C Government had said that the 14 pumps would have helped to solve drainage issues for farmlands on the coast.
NDIA was headed by engineer Lionel Wordsworth who is currently on leave.
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