$$Multi-million security, road repair contracts under scrutiny

Apr 15, 2014 News

…$7B budget approved for Regions 6, 7 and 8

The Opposition brought the microscope on millions of dollars spent annually for security services contracts before approving over $7B for Regions Six, Seven and Eight, as the considerations of the $220B National Budget estimates for this year continued yesterday.
One of the companies, Strategic Action, especially came for special attention as its main principal had reportedly faced charges relating to stolen property. Some of the items included, (allegedly) a number of stolen laptops belonging to a distribution programme run by the state.
However, the charges, the House was told last evening, have since been dismissed.

Local Govt. Minister, Norman Whittaker

The Opposition had argued earlier that the company should have been blocked from participating in state contracts because of the charges.
According to Winston Felix, a former Commissioner of Police and now Member of Parliament for A Partnership for National Unity (APNU), he would have been blacklisted had he been in the same position.
Minister of Local Government and Regional Development, Norman Whittaker, insisted that the contracts were awarded in keeping with the national procurement laws.
Questions were also asked about the costs for security services which have increased significantly, in some cases, up to 80 per cent. However, the government has explained that the difference reflects increases of the Minimum Wage last year, which placed extra costs for those companies.
The Opposition was especially critical of complaints that security guards have been underpaid despite the introduction of new Minimum Wage measures last year.
They have asked for details of how and where security services are being provided so that checks can be made to ascertain that 24-hours services are indeed being provided.
According to Whittaker, Government is paying security firms $300 per hour on the contracts.
The issue is not new as workers have been complaining of being paid late, and less than what they should be receiving.
Additionally, there have been cases reported of security firms not paying taxes and workers deductions for the National Insurance Scheme not being remitted.
Strategic Action and Homesafe Security were the two companies that have been awarded the bulk of the contracts for the schools, health centres and other Government facilities.
For the three regions, more than $400M has been allocated to pay security firms.
During considerations of Region Six (East Berbice/Corentyne), Member of Parliament of the Alliance For Change (AFC), Dr. Veerasammy Ramayya, raised questions about the Region’s spending on fuel and lubricants.

AFC’s MP, Dr. Veerasammy Ramayya

Of concern was the fact that a truck has been in the workshop for two years now with the low-bed trailer at the Whim centre ground. However, it was explained that the Region has other vehicles. There have been accusations that the Region is involved in rackets where private contractors illegally benefit from “free” fuel.
In total, more than $4.4B in allocations for East Berbice Region was approved.
So too was a $1.6B allocation for Region Seven (Cuyuni/Mazaruni) and a $1.6B for Region Eight (Potaro/Siparuni).
In Region Eight, Government disclosed that it is moving to phase out the use of pit latrines for its facilities, including schools, with a number of projects underway.
Questions were also asked about the availability of vehicles for Regional Chairman, Mark Crawford.
Crawford’s party, the Alliance For Change, has been complaining that the official has been consistently sidelined in his work. That opposition party won the Region following the 2011 General and Regional Elections.
However, Minister Whittaker disclosed that an All-Terrain Vehicle is at the disposal of the Chairman. So too were vehicles which are under the control of the Regional Executive Officer.
The Government was also intensely grilled about the hostels, schools and repairs to roads and bridges in especially Regions Seven and Eight.