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E-governance project…Ramotar refunds Dax $7M unknown to Technical Advisor
While auditors have credited poor management and lack of relevant project outlines as the main reasons for
Former Project Manager, Alexi Ramotar
the sad state of the $7.9B E-Governance project, Fazil Mohamed of Dax Engineering blamed errant contractors. But what Mohamed did not tell the auditors was that he was one of the contractors that erred.
The forensic audit into the affairs of the E-Governance project was conducted by Ram and McRae, Chartered Accountants.
Auditors reported, “Mohamed also shared his views and reasons for the Project’s failure due to damaged cables. He affirmed that the primary reason for the Project’s failure is due to poor installation of the fibre optic cables mainly by two other named contractors” of another company.
The report stated that Mohamed volunteered information to the effect that one of the contractors did not have the appropriate equipment to install fibre optic cables and sought to do so manually.
He also indicated that some of the cables installed in Linden were laid on the ground and covered with sand, instead of installing the cables 1.5 metres below the ground.
The audit report however indicated that Dax Engineering has its fair share of the blame to take. The auditors said that the company was made to pay a penalty for inadequate works. Dax Engineering was required to perform remedial works on the fibre optic cable which was not properly installed.
Documents seen by the auditors indicated that his failure to perform the job required resulted in $20.4M in payment being withheld. This was made up of over $12.7M as retention and over $7.6M as penalty.
On March 7, 2012 Walter Willis, the project’s Technical Advisor approved the payment of $6,378,966 – being 50 percent – leaving an equivalent sum outstanding as retention.
However, Auditors reported that “On June 10, 2013 the Deputy Project Manager, Mr. Anil Singh wrote a letter to the Project Manager, Alexei Ramotar, indicating that the remedial work had been completed and requesting the release of the balance of the retention ($6,378,966) as well as refund of the penalty ($7,644,910).”
Ram and McRae indicated that Ramotar approved this and the money was paid to Dax by way of a bank instruction.
“Our understanding is that the payment was made without the approval of Mr. Willis. In our view, Dax was not entitled to a refund of the penalty.”
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That is fraud. Obtaining money based on a deliberate false representation is fraud, plain and simple. Establish that the work was not done, that the claim that it was done was made, that the money was paid, and prosecute the people in the company responsible, as well as those on the Government side who paid the money without the necessary financial authority.