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Oct 10, 2011 News
– cost of electrical cables overstated by $10,000 each
An Engineer’s Estimate for the controversial $69M Corriverton branch of the National Insurance Scheme (NIS) had catered for seven air-condition units but only six were installed.

Seven a/c units were budgeted for in the controversial, overpriced $69M NIS branch at Corriverton, Berbice, but only six were installed.
As a matter of fact, in the same document, a 1.5mm2 electrical cable which goes for around $18,000 for one roll was listed as $29,500.
According to the Bill of Quantities for the electrical works of the 40 feet by 60 feet one-storey building, it required York a/c units varying from 36,000 BTU units to the smaller 9000 BTU units. It also required seven of these, with the price ranging from an expensive $456,000 to $85,000 for one.
A high-end split-unit a/c averages around $250,000.
According to the estimate, $15,000 was the cost for two four-feet double fluorescent lamps. Some 24 of these lamps totaling $360,000 were needed.
Recently, after almost five weeks of probing questions over the $69M Corriverton branch of the National Insurance Scheme (NIS), Government has asked Kaieteur News to write another letter requesting additional information.
Over a week ago, NIS Chairman and Cabinet Secretary, Dr. Roger Luncheon, when questioned about whether he would be willing to allow the newspaper access to the Berbice building for a post-construction audit and for additional cost details, said that Kaieteur News should place the request in writing.

The Engineer’s Estimate of what it would have cost for electrical works on the $69M NIS branch at Corriverton.
Kaieteur News had published pictures of the newly commissioned branch which government said was built for $69M.
The newspaper had also published pictures of three homes it had built for staffers in Diamond which cost under $7M each. It had called for government to produce the Bills of Quantities and other costs which led to the $69M being spent.
Dr Luncheon had asked the newspaper to produce the cost of the homes and in turn the government would provide the information.
However, while Kaieteur News handed over all the receipts of the monies spent, government only released the Engineer’s Estimate.
That document itself produced some startling revelations like $6.5M being projected for the roof, almost $500,000 for a septic tank and $3M for a generator hut.
That Engineer’s Estimate for the construction projected that it would have cost just over $50M, a stunning figure for a 40 feet by 60 feet building, some observers said.
In one of the Bills of Quantities examined — “Doors and Window”– pine doors were estimated at $25,000—double the estimated $13,000 real cost.
But it was the windows–two of them were fitted to 13 frames– that took the cake. The Engineer’s Estimate said that 26 of these would cost $56,000 each. In total these windows, measuring 36 inches by 54 inches, would have cost $1,456,000. Hardware stores sell these for around $25,000 each, which suggested that the windows were over-estimated by almost $800,000.
According to another Bill of Quantities described as ‘Rainwater Goods and Cold Water Distribution’, plumbing for five toilets, toilet sets, face sinks, gutters and three Tuff Tanks and gutter works all came up to $1,377,300. Kaieteur News discovered that the contract for the Corriverton branch was not awarded by the National Procurement and Tender Administration Board (NPTAB).
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Good Job KN!
This is just the tip of the iceberg for NIS.
If you believe this is rediculous – then try doing an audit on the cost and work done on on the roads, sea-defence, culverts, schools and general items procured by every ministry and local utility services by the government.
These fellas avoid the bidding, RFP/RFQ, and all the other processes just to satisfied their greed and have the money circulating amongst their family and friends.
They work done is never in accordance with the contract and to satisfy what’s identified in the scope of the project plan. Simply put – they provide an estimate for green heart wood and they supply hardwood.
There’s really nobody honest enough to ensure the hardworking tax payers dollars are properly spent. Just another reality of the third world, “corrupt, corrupt, corrupt”.
Keep RIDING these issues. Tax-payers have the right to know how hard earned dollar is spent. Keep up the good work…..TECK OUT YU KEY AND USE IT
I would like to know who was the contractor that was given that contract by the NPTAB….or if NIS……and what steps were taken in evaluating the Engineering estimate of the project before approval…….an if it was tendered to the public…..or perhaps otherwise by…….
This is cool! And so interested! Are u have more posts like this? Please tell me, thanks