Latest update April 20th, 2024 12:59 AM
Jul 18, 2017 News
In a surprising turn of events at yesterday’s meeting of the Public Accounts Committee, it appears as though there is collusion between some contractors and the Region Eight Democratic Council.
This collusion has led to overpayments that were made on projects. The PAC dealt with issues highlighted in the Auditor General’s report for 2015, one of which was that the Regional Administration was still to recover overpayments totalling $12.781M made on 15 contracts during the years 2011 and 2013.
Further, it was noted that the Regional Administration was yet to recover mobilisation advances totalling $2.213M paid to contractors but whose contracts were terminated for failure to complete the works within the contractual period.
The region was advised to recover the overpayments and put proper systems in place to avoid future occurrences. When asked how the overpayments could have occurred and what steps are being taken to prevent a reoccurrence, the Regional Executive Officer, Gavin Gounga, said that the bill of quantities may not have been prepared properly.
Gounga was not the REO during the period these overpayments were made but yesterday he was required to be updated on the issues as he has assumed the position of accounting officer.
He added that so far two contractors have begun repaying the excess money to the region, the most recent being yesterday morning. He said that the contractors have been written to and they have responded expressing their commitment to repay the money owed by the end of this year.
The REO, when asked if the contractors who currently owe the region money are still benefitting from the award of contracts, responded in the affirmative. Further, it was explained by PAC member and Minister of Public Health, Volda Lawrence, that this is a matter that has been before PAC for about six years.
“This is not yesterday, and we keep adding to the list as we go along. The Auditor General’s engineers, when they measured the works, you had overpaid for works that were not done. This had nothing to do with bill of quantities. You all paid people for works that were not done.”
She said that the last time the regional appeared before PAC, queries were made about a certain contractor that owed money to the region and was still bidding for new contracts in the region.
According to Gounga, the payment made yesterday by one of the contractors totalled $100,000. This was picked up as a red flag by PAC Chairman, and People’s Progressive Party parliamentarian, Irfaan Ali. He questioned whether it was a coincidence that the sum was paid on the morning of PAC.
This contractor was Curtis Garraway of Mahdia and the contractor that paid at an earlier date was Salim Yusuf of Cornelia Ida, West Coast Demerara.
Additionally, the REO said that the other contractors that owe the region are Nigel Forde of Bartica, Troy Dainty of Mahdia, and Ramuping Wilson of Kitty, Georgetown.
Further, the PAC Chairman asked the REO to read the letters of commitment that the contractors sent to the region. Three letters read were sent on the same day, May 2, 2017 and were written in the exact format as though the contractors followed a template.
This was another red flag; the reaction by PAC members was that there is collusion between the contractors and the RDC and that the contractors are being protected at the regional level from repaying the contracts. The letters were submitted to the PAC.
It was recommended by PAC member Charandas Persaud that the region can recover the money in the new contracts signed between the contractors and the region if the overpayments are subtracted from the new contract sum.
The REO was asked what measures are being considered besides writing contractors to recover money. To this, Gounga said that legal advice will be sought to recover the money.
Last May, Rafel Downes, who preceded Gounga as REO, was sacked from his position following issues raised while before the PAC regarding spending in Region Eight. On one occasion he was asked to leave the chambers. He was accused of lying to deliberately mislead PAC on a number of matters.
Where is the BETTER MANAGEMENT/RENEGOTIATION OF THE OIL CONTRACTS you promised Jagdeo?
Apr 20, 2024
– Elton Dharry and Dexter Marques to headline tonight’s card Kaieteur Sports – The Everest Cricket Club pavilion crackled with tension yesterday as the Guyana Boxing Board hosted its...Kaieteur News – Once a habit has been drilled into you, it returns almost automatically when you return to the setting... more
By Sir Ronald Sanders Waterfalls Magazine – On April 10, the Permanent Council of the Organization of American States... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]