Ramjattan, Ramsaran cross swords over stalled Specialty Hospital

Aug 19, 2015 News

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By Kiana Wilburg
The second day of the 2015 budget debates was yet again characterized by mudslinging among members of the National Assembly.
Yesterday, the majority of the speakers from the opposition’s camp boasted of the legacy of transformational projects they left behind for the coalition government to front with.
Former Minister of Health, Bheri Ramsaran rose to defend his party’s position along this line as he referred to the Specialty Hospital. Ramsaran expressed his shock and disappointment in the fact that hope for the project’s continuation could be found nowhere in Budget 2015.
Ramsaran seemed upset that this “transformational project” was erased from the Budget and said that it is a shame that this was done. But his comments only earned unsympathetic remarks from the eastern side of the house where the government members sat.
The sounds of disapproval were so overwhelming that Ramsaran was thrown off course during his presentation, but quickly regained composure. He said that the mocking would not deter him from making his point on the subject.
Ramsaran stressed for several minutes that the 2015 budget should have recognized the importance of such a project.
But Vice President and Minister of Public Security, Khemraj Ramjattan just couldn’t bear to hear the minister continue along such lines. The Minister then turned to his colleague, Prime Minister, Moses Nagamootoo saying, “This man (Ramsaran) can’t be serious man.”
Facing Ramsaran this time, Ramjattan shouted, “That hospital is scampishness. It is pure scampishness.”
Noting that he would not respond to “the noises,” Ramsaran then sought to stress that the 2015 budget lacked vigour and new ideas and turned his attention to another issue.
The company that was contracted under the previous administration to construct the “transformational project” was Surendra Engineering Corporation Limited (SECL).
But after months of failing to deliver on the US$18M Specialty Hospital, a local court ordered the Indian company in January to pay over $900M. But the previous government had the devil’s job of locating the company to enforce the judgment. This problem is one, among many others, which the current administration inherited from the PPP/C.
To date, the company still cannot be found. It is as though it vanished into thin air.
Court officials, since the claim for damages were filed in October by the Ministry of Legal Affairs, went to the Berbice registered office listed by Surendra to serve the writ.
The Ministry even resorted to published notices of service in the Guyana Chronicle newspaper on two consecutive occasions – December 13 and December 14, 2014, to no avail.
What makes the matter more interesting is that Surendra, in India, filed for bankruptcy, according to records seen by Kaieteur News.
It has raised serious question as to how the fledgling Government will recover the monies.
Under the contract with Surendra, it was agreed that the company would provide services in relation to designing, building, equipping, testing, delivering, installing, completing and commission of certain facilities for the Surgical Specialty hospital in Turkeyen, Georgetown. The consideration or cost of the contract was US$18,180,000.
On 27th December, 2012, Surendra Engineering was given an advance payment of 20 percent of the contract price, which amounted to US$3,636,000. On November 18, 2013, an additional payment of US$649,440 was made.
Surendra eventually failed to submit payment receipts to account for the advanced payment of US$4,285,440.
“Instead, the company submitted fabricated, unsigned and inflated invoices with no evidence of actual payments made to support the expenditure claimed. In addition, the advance payment guarantee expired on 11th March, 2014, and the company failed to renew same in accordance with the terms of the contract,” the formerly named Ministry of Health had said.
After being informed of the expiration of the advance payment guarantee, the Ministry said that Surendra then attempted to submit one from a company in Trinidad and Tobago called ‘Worldwide Bankers Re Company Ltd’.
“However, pursuant to queries by the Government of Guyana, it was informed by the Central bank of Trinidad and Tobago that ‘Worldwide Bankers Re Company Ltd’ is not a registered insurance company under the Insurance Act of Trinidad and Tobago.”
The then Government moved to terminate the contract on the grounds that Surendra failed to renew or provide the advance payment guarantee; engaged in fraudulent practices and failed to satisfactorily perform its obligations under the terms of the contract.
The Office of the former Attorney General/Ministry of Legal Affairs, Anil Nandlall on October 15, 2014, filed a writ of summons in the High Court naming Surendra as the defendant.
The previous Government was claiming damages in excess of $100M, special damages in the sum of US$4,285,440; interest at the rate of six percent per annum from the date of filing to the date of judgment and at the rate of 4 percent until fully paid and costs in the sum of US$10,714.50.
The case was seen as a huge embarrassment for the formerly named Ministry of Health and the then Government, which had been banking on the hospital as one of its flagship projects. It had refused to listen to urgings of the APNU+AFC that Surendra was not capable of building the hospital which would have offered specialty treatments that patients, in normal circumstances, would have had to seek overseas.
In spite of this history, Ramsaran still displayed true faith in the potential of the project to lift the nation’s image in the health sector.

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