Due diligence undertaken and achieved - Ministry of Education

Due diligence undertaken and achieved – Ministry of Education

Jul 19, 2011 News

In the last two weeks the Ministry of Education has signed off more than $650M in contracts to the Private Sector for the procurement of equipment, tools and furniture.
This perhaps would not be such a newsworthy point were it not for the fact that these contracts are with just four contractors; three of whom are receiving more than $100M a piece.
The three contractors in question are Digital Technology; Boss Pro-Tec, a German firm; and one Mohamed Baksh. The fourth contractor is the International Pharmaceutical Agency (IPA) which has netted two contracts worth approximately $50M to provide office furniture and equipment as well as household appliances for a Ministry of Education Project.
During a press briefing yesterday, the issue of due diligence being executed by the Ministry on these contractors was raised.
Permanent Secretary in the Ministry of Education, Phulander Kandhai, stated that the contracts were all publicly tendered and open to all contributing territories of the Caribbean Development Bank.
He noted that there were several tiers of examination and audit both locally and at the Caribbean Development Bank and that there was rigorous examination by both the Central Tender Board and the Cabinet. “They (the contractors) have known track records. They have been reliable suppliers. We have engaged them several times in the past.”
He stressed that not only the Guyanese Cabinet, but the CDB as well has passed the contracts with no objections.
Kandhai added, “Due diligence has been undertaken and we can safely say that it has been achieved.”
Minister of Education, Shaik Baksh, said that the project is part of the Enhancement of Technical and Vocational Education and Training which provides for the establishment of two technical institutes and improvements in the existing ones.
Baksh said that the project is a joint initiative between the Caribbean Development Bank (CDB) and the Guyana Government. He claimed that since the project is being overseen by the CDB, there have been several “missions” by the CDB to Guyana and that they have brought their own interviewers to assess the contractors. They too have given their no objection as well.
Mohamed Baksh, who stated that he is a representative of Pest Control Plus, has been awarded two contracts amounting to the sum of $222.7M for the delivery of tools and equipment. $96.7M will be to provide tools and equipment to be used in the two technical centres being constructed at Leonora, West Coast Demerara and Mahaicony, East Coast Demerara.
The remaining $126M is said to be directed at retooling and re-equipping several existing Technical Institutes.
Digital Technology was again awarded a $70M project under the TVET Enhancement Project that sees it providing computers, servers and overhead projectors to the technical institutes. Just last week, the company signed a $223M contract to provide computers, servers, overhead projectors and other equipment to 70 secondary schools across the country under another Ministry of Education initiative.
That supplier owns a company which failed to pay its taxes last year and was threatened with being struck off the list of businesses that could operate in Guyana.
A few months ago, this very company could not even supply a laptop computer to a potential buyer who walked in to the store.
At the very least the other two contractors provoke less questions since they both appear to have some experience in providing the products which they bid to supply.
Although the International Pharmaceutical Agency (IPA) describes itself as “dedicated to marketing a wide range of products for hospitals, clinics, doctors, laboratories, and x-ray facilities” it does feature Multi Builders Inc (MBI) which sells office furniture among its group of companies.
The final contract for $102M went to Boss Pro-Tec a German firm represented at yesterday’s contract signing by the Honorary German Consul to Guyana, Ben J. H. ter Welle. Boss Pro-Tec GmbH, was established in 1997 and has a company profile which states plainly that it is “a worldwide acting export company”.
Listed among the products they provide are “Tools: all kinds of hand tools and instruments, special tools, tool sets, etc.”, “Machines: machine tools, machines for wood, metal and plastic processing; electric, hand and half-stationary tools” and finally “Equipment for vocational training centres: for all skills, for primary and secondary schools, polytechnics and universities”.

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