IDB bans local contractor for 13 years

Jan 10, 2018 News

– cites fraud, collusion

A local contractor is the latest to have been blacklisted by the Inter-American Development Bank (IDB).
According to the most recent list of blacklisted companies and individuals that are barred from participating in IDB contracts, Vevakanand Dalip Enterprises and Vevakanand Dalip, its principal, have been barred for the period December 29, 2017 to December 28, 2030. That means that the company will not be able to tender for IDB contracts for 13 years.
Dalip was blacklisted for “Fraudulent and Collusive Practices”.
Dalip, reportedly based in Lethem, Region Nine, has been bidding for state contracts.
It has not been the first time that local contractors and individuals have been barred by IDB, one of the biggest funders of government projects.
It was learnt last year that the previous Coordinator of the Citizen’s Security Programme, Abel Khemraj Rai, was banned for eight years from August 23, 2016 to August 22, 2024.
Four other companies and individuals that seem to have connections with Rai – including Sidrai Radiator Works, Sidrai Enterprises, Siddaharta Rai and Ron Jaisari – were also sanctioned and banned for four to eight years. They were also found guilty of fraudulent and collusive practices. The last four are reportedly from Trinidad.
Western Scientific Company Limited from Trinidad which did business with Guyana was also handed a four-year ban from March 31, 2016 to October 15, 2020. However, the company controversially received a $30M contract from the Ministry of Public Health last year.
IDB findings are as a result of an administrative process that permitted the accused firms and/or individuals to respond to the allegations pursuant to the Sanctions Procedures.
“Sanctions are meant to prevent and deter fraud and corruption in IDB Group-financed activities.
The Sanctions Committee may impose any sanction that it deems to be appropriate under the circumstances, including but not limited to reprimand, conditions on future contracting and debarment.
Debarred firms are declared ineligible to be awarded and participate in any IDB-financed contract for the periods indicated. Ineligibility may extend to any firm or individual who directly or indirectly controls the debarred firm or any firm which the debarred firm directly or indirectly controls. In the case of a debarred individual, ineligibility may extend to any firm which the debarred individual directly or indirectly controls,” IDB explains on its website.
There has been no clear policy by consecutive Governments what happens to blacklisted contractors of IDB.
Government has disclosed plans to establish a national list of contractors, in order to weed out the ones that are not toeing the line. With billions of dollars in stakes in state contractors annually, there have been constant accusations of bribery and collusion.

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