Govt suing Hand-in-hand for Synergy’s non-performance

Jan 12, 2013 News

The battle between the Government of Guyana and Synergy Holding has gone up a notch with the Ministry of Public Works, through Attorney General, Anil Nandlall, now suing Hand-in-Hand Insurance Company in the wake of its failure to effect payment on a Performance Bond to the tune of in excess of US$1.5 million.
According to a Writ filed by Nandlall, on March 31, 2010, Hand-in-Hand executed a Bond/Guarantee No. PB 2009/008 in favour of the Government whereby Synergy Holdings Inc. of 951 Sansbury’s Way, Suite 204, West Palm Beach, Florida 33411, United States of America, had undertaken the construction of the Amaila Falls Road and Transmission Line Clearing Project.
The contract was intended to cater to works from Linden to Amaila Falls in Region Eight.
Based on the contract the contractor should have furnished the Plaintiff with a security Performance Bond issued by a duly licensed and reputable guarantor for the sum specified as security for compliance with the contractor’s performance obligations.
As such Hand-in-Hand of Lot 1-4 Avenue of the Republic, Georgetown, Guyana, had agreed to give the contractor a security stating that “we hereby affirm that we are Guarantors and responsible to you, on behalf of the Contractor, up to a total of USD 1,540,000.00 equivalent to G$318,780,000.00…and we undertake to pay you, upon your first written demand declaring the Contractor to be in default under the Contract and without cavil or argument…without your needing to prove or show grounds or reasons for your demand or the sum specified therein and without the consent of the Contractor.”
However, the Writ went on to note that by letter dated January 11, 2012, the Government was forced to terminate the said Contract since Synergy Holdings Inc. did not duly perform the terms of the said contract, or execute and complete the works set out in the contract and within the time prescribed thereof.
It was noted too that by letter also dated on January 11, 2012, the Permanent Secretary of the Ministry of Public Works and Communications wrote to the Defendant Company in accordance with Article 10 – BONDS AND INSURANCE Sub-Clause 10.2 demanding that it honoured its obligation.
Despite the aforesaid letter, the Writ states that the “Defendant has failed, refused and or neglected to effect payment of said sum USD 1,540,000.00 (one million five hundred and forty thousand United States dollars) or at any sum at all.”
The government is also seeking interest at a rate of six per cent per annum from the date of filing to the date of judgment and at the rate of four per cent until fully paid. Additionally it is claiming costs in the sum of $797,137 and any other court cost.
The matter is set for Wednesday February 20, 2013, at the High Court, Georgetown, Demerara.

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Govt suing Hand-in-hand for Synergy’s non-performance

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