Big contracts and corruption

Sep 02, 2012 AFC Column, Features / Columnists

The Business Dictionary defines corruption as, “Wrongdoing on the part of an authority or powerful party through means that are illegitimate, immoral, or incompatible with ethical standards”.
Recently, the government controlled National Communications Network (NCN) started a seven part debate series looking at corruption related to a number of million dollar projects.
One of the projects debated was the Cheddi Jagan International Airport Expansion Project. We take the opportunity to raise some of the points made by the Alliance For Change during the debate and put forward some questions which the government has failed to answer.
Corruption claims
The little that is known about this project raises more questions rather than reassure the people. First, the signing of the agreement between the Government of Guyana and the Chinese firm, China Harbour Engineering Company, only came to light when the company made an announcement in Jamaica. Usually, when contracts are being signed, the minister would claim his/her two minutes of fame and call in the media to witness the signing. There would be a big ‘to-do’ even if it is a small contract.
Why was this not done for the airport expansion project? This is a US$150M project. Why would the government not want to have this contract signed with the media present? Why all the secrecy? Could it be that, were it not for the privately owned media houses, the Government would have announced this project probably until work had started?
During the debate, the government took a lot of time and put a lot of effort into explaining that money was offered by the Chinese and they jumped to it.
This of itself is highly unethical behavior on the part of a government. Why would a government, disregard its own procedures and policies for entering into loans and contracts? It is highly unprincipled for a government to allow itself to be lured into a loan agreement without first conducting due diligence to determine whether the time and circumstances are ripe for such an agreement. Why was there this obscene haste by the PPP/C government to get this money? How much money will have to come from the national coffers to compensate those residents and businesses that will have to be relocated?
CJIA expansion project
Where is the feasibility study for this project, when was it done and who did it?
How was bidding for this project done? Who were the other companies that sent in bids? When was the short listing done?
What would be the impact of this project on the environment?
How many residents and businesses will have to be moved to accommodate this expansion?
How many creeks and waterways would be blocked or diverted to accommodate this project?
What compensation the government intends to offer to the persons and businesses that will be affected?
What would be the total cost for this project inclusive or the expansion and compensation?
These are questions that the government failed to adequately answer. It is not good enough to say they have the feasibility study and not share that study with the AFC and other stakeholders. If the study is dated more than 10 years then there is need to review that assessment.
During the debate, the government minister was beating his chest and making a lot of noise that the government has a plan for the residents who will be affected by the expansion but he failed to outline even in the broadest of terms, what that plan is. It is not enough to say, “we have a plan.” The government should have detailed what that plan is.
In addition to the impact on the residents, the project will also impact the environment. The government failed to address the impact on the environment and the businesses relying on the environment.
Maybe now the government can start by providing answers.
In addition, the government should also explain why they are scrambling to secure a loan to expand the airport when children at Moleson Creek cannot get to school because of the deplorable condition of the road. They should also explain to the thousands who travel the East Bank Demerara road and take close to two hours to travel from Diamond to Georgetown in the mornings, why they are borrowing money to expand the airport instead of building an alternative road as a matter of priority. They should also explain to the thousands of young Guyanese why they keep piling on debts that will have to be paid by these young people in a few years time.

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Big contracts and corruption

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