Latest update November 8th, 2024 1:00 AM
Latest News
US$18M Specialty Hospital sinks in deeper trouble… Govt. moves to terminate Surendra’s contract
– cites fraud, non-performance
Former President Bharrat Jagdeo
More than two years after controversially awarding a US$18.1M ($3.7B) contract to an Indian firm to build a specialty hospital at Turkeyen, Government yesterday announced that it is moving to scrap the deal for fraud and non-performance.
The announcement comes days after reports that one senior official of Surendra Engineering Company Limited (SECL) has skipped the country following a court judgment in favour of a prominent contractor which did works on the East Coast Demerara project site, but was not paid.
The signal to pull the contract would also spell a major embarrassment for the administration which had pulled out all stops to defend the Indian company, despite public misgivings over the actual award of that contract.
Surendra itself is no stranger to controversy. After building US$12.8M Enmore Packaging Plant, the former administration under President Bharrat Jagdeo then turned around and granted a US$4M contract to the Indian firm to supply 14 pumps to help reduce flooding on the coastland.
Diligent checks found that the company had no history in pumps. That contract is still mired in problems as Government is unable to say where the pumps are and whether Surendra actually supplied all of them. The answers have been sketchy at best.
Regarding the specialty hospital contract, which was award in August 2012, the Government of Guyana “Press Statement” said that SECL was yesterday written to, expressing the country’s “deep concerns” about the execution of the project’s design and construction.
Government admitted that all was not well with the performance targets it set for Surendra and monies it had advanced.
“Initially, the Government’s concerns related to delayed milestones and inadequate accountability by SECL for public funds the company had received on signing the contract with the Ministry of Health.”
The situation took a turn for the worse when in late June, Government also started engaging SECL on a number of issues regarding “allegations of fraud and financial irregularities.”
Government started investigating and made a startling discovery, reportedly with the key tender document.
“Subsequently, the Government of Guyana discovered that SECL’s representative in Guyana had submitted a fraudulent document purporting to emanate from the Central Bank of Trinidad and Tobago.”
Since the “fraudulent act by SECL” was confirmed by the Central Bank of Trinidad & Tobago, Government decided to act.
In its letter to Surendra yesterday, Government told SECL of Guyana’s intention to terminate the contract and pursue legal action against the company for fraud.
Guyana will also move to recover public funds from SECL which had been advanced, and for which it has failed to account fully.
It was only recently that BK International, a prominent contractor, indicated that it was contemplating taken SECL to a court in India after that company failed to pay it over $400M for work done in driving piles for the foundation.
BK International said that the Brijen Parikh, the Managing Director, left the country after a court judgment in Guyana in which BK was awarded $180M. Of course, BK International has not been able to collect.
Regarding, the actual award of the contract, Fedders Lloyd Corporation Ltd of India, another Indian company had objected to SECL being awarded. Fedders Lloyd had bid the lowest.
There were questions over the actual bidding process, with Leader of the Alliance For Change, Khemraj Ramjattan, taking up the matter, and with searching questions being raised in the National Assembly. Still, the administration refused to budge and continued to back Surendra.
Considering the fact that the specialty hospital was being funded through an Indian line of credit for US$18M, Fedders Lloyd even took the matter up with the Indian Parliament where the matter was reportedly being addressed. It is unclear whether the complaint to the Indian Parliament had any bearing on Government’s decision yesterday.
The announcement for construction of the 150-bed hospital was made in February 2011 by former President Bharrat Jagdeo when he returned from India.
Government had budgeted $150 million to commence the preparatory work. Cabinet awarded $97M to G. Bovell Construction Services in January 2012 to commence those works which included the construction of a fence, bridges and gateways.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
A lesson from the bread lines of America
…Peeping Tom Kaieteur News- If the American elections of 2024 delivered any one lesson to the rest of the world, it... more
Rising Gun Crimes in the Caribbean: Urgent Action required by all
By Sir Ronald Sanders Kaieteur News – There is an alarming surge in gun-related violence, particularly among younger... more
Weekend Cartoon
