$72M motion scales yet to be delivered to Public Works Ministry

Dec 17, 2023 News

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Seven years later…

Kaieteur News – Seven years since they were purchased, the Ministry of Public Works is yet to receive three motion scales which were sourced back in 2016.

This was revealed in the 2022 Audit Report prepared by Auditor General (AG) Deodat Sharma. The scales were procured by the Ministry of Public Infrastructure, now named Ministry of Public Works.

In the report, the AG related that the Works Ministry had paid a contractor $72.264 million to supply and deliver the motion scales within 90 days of signing the contract. The document stated that the supplier received the entire sum in 2016, contrary to the contractual terms of 50% advance payment within thirty days of signing the contract and the balance on delivery.

“More than six years after the payment, the scales have not been delivered to the Ministry,” the AG highlighted.

He related in the report that the ministry had explained that due to delays in clearing the scales, the items were still at the wharf. Moreover, there were issues with the payment of value-added tax (VAT) to the Guyana Revenue Authority (GRA).

It was disclosed that the Public Works Ministry wrote the Ministry of Foreign Affairs and International Cooperation seeking assistance to resolve the issue. The ministry also enquired from Laparkan Shipping about the status of the scales after a fire destroyed its wharf in January 2022.

The AG noted that at the time of reporting in September 2023, the matter was engaging the attention of the courts.

Responding to the AG’s findings, the ministry indicated that the observations about the scales were correct. According to the ministry, the scales are not in the possession of the agency. However, a joint inspection between the ministry and the Audit Office was conducted in September 2021 to confirm the items were on the wharf.

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 supplier and the former Minister of Public Works for breach of Contract.

The Public Works Ministry said it is making every effort to bring the matter to a close. The ministry further noted that it has written the contractor to enquire about the status of the scales, given the fire that occurred at their bond in January 2022. Additionally, the Ministry wrote Laparkan via correspondence dated 22 February 2022, making a claim for the said motion scales which it said were destroyed in the fire.

Seven years still undelivered, the Audit Office recommended that the Head of Budget Agency follow up with the Contractor and the Ministry of Legal Affairs to bring closure to the matter.

On the subject matter, Kaieteur News had previously reported that the Attorney General 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.

This publication reported too 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.

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• Auditor General (AG), Deodat Sharma, Ministry of Public Works, Motion, payment

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