Motion scales still to be delivered to Public Works Ministry six years later - AG Report

Motion scales still to be delivered to Public Works Ministry six years later – AG Report

Nov 13, 2022 News

– Contract paid in full

Kaieteur News – Three motion scales that were sourced and paid for in full by the then Ministry of Public Infrastructure some six years ago are yet to be delivered to the Ministry, now named the Ministry of Public Works.

Auditor General (AG) Deodat Sharma in his 2021 Report said that $72.264 million was paid for the supply and delivery of three ‘motion scales’. The supplier was required to deliver the scales within ninety days of signing the contract, as payment should have been 50% advance payment within thirty days of signing of the contract and the balance on delivery.

However, as of December 31, 2016, the Report stated that the full contract sum was paid to the supplier. At the time of reporting, the scales have not been supplied to the Ministry, the AG explained.

The AG said that the Ministry reported that two of the scales were at the wharf but experienced some delays in clearing the scales. Moreover, there are issues with the payment of Value Added Tax. “It should be noted that the Ministry have since written to the Ministry of Foreign Affairs and International Cooperation seeking assistance to resolve this issue,” the report noted.

Responding to the AG’s findings, the Ministry admitted that the observations made by the Audit Office are correct and that the scales are not in the possession of the Ministry.

“The matter was subsequently forwarded to the Attorney General’s Chamber for advice. The Attorney General Chambers and the Minister of Legal Affairs have begun proceedings against the parties for breach of contract. The Ministry is making every effort to bring this matter to a close,” the Ministry said.

Further, the Ministry indicated to the AG that it has since written to Laparkan Shipping to enquire about the status of the scales, given the fire that occurred at their bond in January earlier this year.

Kaieteur News had reported in August last year that the Attorney General (AG) and Minister of Legal Affairs, Mohabir Anil Nandlall, had moved to the High Court over the three Mettler Toledo Weight-in-Motion Scales that the former Government through the then Ministry of Public Infrastructure had purchased in 2016 but was never delivered.

It was reported that the Attorney General sued former Minister of Public Infrastructure, David Patterson, then Permanent Secretary (PS), Balraj Balram, and Engineer/Manager Lawrence Mentis. The Attorney General also sued Nevpro Realization Limited, a Jamaican company for breach of contract by failing to deliver the scales.

According to the document which was seen by this publication, the AG had sued Patterson, Balram and Mentis, for $50 million for loss and damage suffered as a result of the misfeasance in public office; in excess of $50 million for loss and damage suffered as a result of negligence to the State and $50 million for loss and damage suffered as a result of the misuse, misapplication, and improper disposal of public sums of money contrary to the Fiscal Management and Accountability Act, Cap 73:02, Laws of Guyana.

Moreover, the Attorney General is seeking $50 million from the Jamaican company for loss and damage suffered as a result of the breach of the contract dated December 6, 2016, and is also seeking liquidated damages against the company in the sum of $7.2 million calculated at 10% of the contract price for breach of contract.

The AG is also seeking an order of restitution of all monies received as full payment under the contract made in the sum of $72,450,000 for breach of the said contract.

In addition, the Attorney General is seeking $100 million against all the defendants for aggravated, exemplary damages. Lastly, he is seeking other orders as the court deems just and reasonable prescribed costs.

It was reported also that on November 1, 2016, the then Ministry invited suppliers through the National Competitive Bidding and Restricted Tendering method of procurement, to bid for the procurement of 14 different Lots of specified goods, which included the motion scales.

El Dorado Trading, a local company was listed as the only bidder for the supply and delivery of the scales, and the company had made a bid of $10,200,000. However, the company was disqualified from the tender procedure due to its submission of a fraudulent manufacture’s authorisation for the supply and delivery of another Lot within the same tender procedure. As a result, El Dorado Trading was ineligible for the award of the contract for the supply and delivery of the scales.

Minister Nandlall had further noted in the court document that instead of using the correct method of inviting suppliers to bid for the supply and delivery of the scales, PS Balram entered into a contract with the Jamaican company for the supply and delivery of the said scales, despite the company never being formally invited to bid for the contract in accordance with the provisions of the Procurement Act.

As it relates to the delivery of the scales, the Audit Office recommended that it “once again recommends that the Head of Budget Agency (the Ministry) follow-up this matter, with a view of bringing it to a closure”.