Handful of companies control $$$B state contracts

Sep 15, 2013 News

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– Govt. admits unhappiness, procurement changes needed – Robeson Benn

Amidst growing concerns over the quality of work offered by contractors on Government projects, the administration has admitted that it is not happy.
As a matter of fact, the current system of procurement, to hire contractors, may need some revamping, said Public Works Minister, Robeson Benn.

The official was on Friday responding to questions relating to the quality of work delivered on Government contracts and the fact that Guyana may be seeing just a handful of firms awarded the majority of projects worth billions of dollars.
There have been heavy criticisms about roads breaking up in the matter of months, cost overruns, delays and of contracts being taken away. There have also been widespread accusations of collusion between Government engineers and supervisors and contractors. However, to date, there have not been any arrests made nor have there been any public examples of guilty contractors or government officials.
During a press conference at his Kingston office to speak on a reported stone shortage, the Minister said that his administration has been encouraging new contractors over the years to bid for government contracts.
Of course, with contractors varying in experience and capacity, the problems may very well lie in the bidding process used to evaluate the tenders submitted.
Under the laws, government contracts for the supply of goods and services are supposed to follow strict procurement methods with contracts over a certain amount handled by what is known as the National Procurement and Tender Administration Board.
Contracts below a certain amount may be handled by the agency but these still have to follow a three-quote system and official notifications to the Tender Board.
Lingering questions
But still the questions have been lingering. There were accusations of information about bids being leaked to contractors and even questions about the actual awarding of contracts. One of the major contracts that come time and again under scrutiny by the National Assembly is the multi-million pharmaceutical contracts for the Ministry of Health and the Georgetown Public Hospital Corporation.
Under the laws, the company generally winning the bids is the lowest qualified one. Based on past performance and capacity, the bidder is awarded the contract.
During examinations of the Government accounts by Parliament’s Public Accounts Committee (PAC),  it was disclosed that some contractors, specializing on works for the different regions, would tender for projects and despite problems and leaving work incomplete, would move to another area and tender again for work, without fear of penalties or even being blacklisted.
With little or no records or proper checks being made, contractors were getting away with murder.
On the level of the large government projects, it is not unknown that one contractor would be issued several contracts and in the scramble to get all done at once, quality and deadlines are sacrificed.
Recently, there were disclosures of a $75M well being dug at Mon Repos. That project has been abandoned for several months as the contractor moves to other jobs.

Several new housing schemes have complained of roads and other infrastructures falling apart.
The Black Bush Polder road project, in Corentyne, East Berbice, has seen several such time extensions.
Until there are changes to the process, the lowest qualified tender will remain the norm, Benn said.
Unhappiness
Disclosing that Government is not happy, Benn was quick to point out that there are a number of measures existing to place responsibilities more on the shoulders of the contractors.
These include an official engineer’s estimate and clauses in the contract for penalties and even for termination of the actual works.
“We are constrained to tendering…the engineer’s estimate. There are ways of leveraging. We don’t have to accept the lowest bid but the general constraint is that if you are qualified and competent and able to do the work, from among the persons, the lowest qualified bid will win.”
In the past, Public Works has penalized contractors and even taken away contracts for non-performance.
However, there may be circumstances in which works are delayed because of other reasons. These include the bad weather this year, among others.
The current four-lane road extension from Providence to Diamond is one example where several time extensions were granted, Benn disclosed.
This is to facilitate the relocation of water mains, drainage, electricity poles and telephone lines.
“But we are doing well under the circumstances,” the Minister said.
Over the weekend, there has been news that one major project, because of reported bad works, has fallen apart. The project in question is the $600M stelling at Supenaam, Essequibo which has started crumbling. There are accusations now that steel, the matting used, may not have been appropriate.
The long-awaited Public Procurement Commission, an independent body to oversee the country’s contracts, has not been established despite increased calls by stakeholders.

 

 

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