Latest update April 23rd, 2024 12:59 AM
Nov 03, 2017 News
– BK overpaid $76M
Leading up the 2011 general elections, negotiations were in full swing with the Chinese government for a loan to expand the Cheddi Jagan International Airport (CJIA), at Timehri.
The airport project, birthed under the Bharrat Jagdeo administration, included the building of a brand-new terminal building with all the whistles and bells, including bridges, and a longer runway to facilitate wide-body planes.
The 2.5km access road was part of the four-lane East Bank Demerara extension and would have complemented the expansion of the airport.
Fast-forward to November 2017, the four-lane access road leading from the Timehri police station to the airport remains incomplete.
A performance audit report by the Auditor General on the construction of the new access road was laid before the National Assembly yesterday and what it is saying about the handling of the access road project is deeply worrying, in relation to the manner the previous administration handle taxpayers’ dollars.
Not only did the tendering process seemed skewed with questions over whether it was properly advertised and enough time given to contractors to properly submit bids, but there is evidence that the government of the day had failed to monitor properly, causing the project to be incomplete six years later, and little chance of recouping an overpayment of $76M to the contractor, BK International.
According to the report, the performance audit sought to determine whether the ministry managed the project in an economic and efficient manner, and ensure that the works were in compliance with international best practices and all relevant laws, regulations and authorities. The audit covered the period January 1, 2011 to September 15, 2016.
BK International, which is under fire for a number of other multimillion-dollar state projects, including the delivery of two water wells, was awarded a contract for $618.4M, with the project expected to start in July 2011 and finish a year later.
BK International is owned by businessman, Brian Tiwarie.
However, it appears the administration of the People’s Progressive Party/Civic (PPP/C) failed to even conduct a feasibility study or a needs assessment to determine whether it made sense to expand the access road. It appeared, therefore, that the project was plucked from the air.
According to the audit report, as of September last year, only 1.7km of the required 2.5 km of roadway from the Timehri police station to the intersection leading to the CJIA, was completed.
Missing also were concrete barriers, sign posts, road markings and signs.
As at September 15, 2016, BK International was overpaid $76.62M for material costs, among other things.Not only was the timeline not achieved, but there was no evidence seen by auditors of BK being granted any extensions to continue the contract.
To BK’s credit, the contractor did submit requests for extension of time. It was claimed that delays with GTT removing its lines and other materials which fell along the roadway were negatively affecting its progress.
However, state auditors were not impressed by the excuse.
“We conclude that the obstructions and other difficulties could not justify the more than four-plus years of delay in completing the road, and hence, the contractor was liable for a portion of the delay.”
BK was even paid for works that were unauthorised, the report said.
With regard to the needs assessment report that would have justified the access road project, the auditors had this to say: “This is vital for assessing whether the Ministry (of Public Works) had achieved its objective and whether the selected choice was the most economic one.”
In fact, there was little paper trail to indicate what kind of monitoring, if any, the ministry was doing, as auditors did not see monthly reports.
“As a result, we must conclude that there was no proper project administration by the WSG (Work Services Group of the Ministry).”
Heading the ministry then were former minister, Robeson Benn. The president was Donald Ramotar.
Auditors said that there were excessive delays by the ministry in addressing problems identified by BK International, especially for the relocation of the GTT junction box that was an obstacle in the path of the roadway. This matter was settled by a court order on April 30, 2014, which required the ministry to pay half or $22M of the removal costs.
With regard to advertising of the contract, the report yesterday said that there was no evidence that the invitation was widely circulated in the media, in keeping with procurement practice.
Rather, it was advertised only in the state-owned Guyana Chronicle, with the period to submit the tenders considered “very short”.
Over the total contract sum of $618M, the ministry paid out $615.6M – this included $20.5M which was paid to GTT for the removal of the junction box.
While BK was the lowest tender, auditors said that eight other companies had submitted bids.
The Ministry of Public Infrastructure, among other things, in its response, said that it concurred with the findings of the reports.
LISTEN HOW JAGDEO WILL MAKE ALL GUYANESE RICH!!!
Apr 23, 2024
Kaieteur Sports – Over the weekend, the prestigious Lusignan Golf Club played host to the highly anticipated AMCHAM Golf Tournament, drawing golf enthusiasts and professionals alike from across...Kaieteur News – Just recently, the PPC determined that it does not have the authority to vitiate a contract which was... 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]