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A NEW PROCUREMENT PROCESS IS NECESSARY!

Dec 15, 2015 Features / Columnists, Peeping Tom

I am flummoxed why everyone is flummoxed by the Memorandum of Understanding (MOU) signed between the Government of Guyana and Fedders Lloyd, an Indian company, to construct the Specialty Hospital.
There can only be one source of this confusion. The contradictory and confusing explanations being provided by the government as the justification for the signing of the MOU, which is being viewed as an attempt by the APNU/AFC administration to hand the contract for the construction of the hospital to Fedders Lloyd.
Interestingly enough, the government is not denying that this is the implication for the signing of the MOU.
The government has too many spokesmen on this issue; each is giving his or her own twist to the story. First, it was said that the award — even though there is no award as yet —   was necessary, because of time constraints.
In other words, what was being suggested was that there is a need to treat this project as a national emergency and therefore bypass public procurement rules.
Then it was stated that this was a case of sole sourcing. However, the construction of the hospital does not fit into the conditions required for sole sourcing. Instead of sole sourcing, what was required was a soul searching by APNU/AFC, because this explanation was fraught with danger and makes the new government look, smell and seem like the one they replaced when it comes to public procurement.
Then the debate attracted the attention of persons outside of the government and other explanations came forth. The MOU was justified on the basis that Fedders Lloyd was the second highest bidder for the original contract to construct to the Specialty Hospital, and since the first awardee has failed to complete the contract, the award now has to be made to the second qualified bidder.
This was a disingenuous explanation on two counts. Firstly, Fedders Lloyd turned out not to be the second qualified bidder. In fact, Stabroek News has revealed that the company was disqualified in the original bid. This assertion has not been rejected by the government. Secondly, there was an original award, and the work started, but not completed. The contract for all intents and purposes ended because of the failure of the original bidder to complete the award.  The contract therefore cannot now be offered to the second qualified bidder under the original contract, since an award was already made.
There has to be a new award and a new contract. A new procurement process has to commence. The old process has ended. Therefore, even if Fedders Lloyd had not been disqualified there was still, under the law, a need for a new procurement process to be undertaken.
It should be. The opposition should lobby the government of India not to release any funds for this project until such time as there is full transparency by the new government. If the procurement laws are not honoured, then an action should be filed in the courts, upon the new signing of an award, to stop construction. These are the options open to the people and to interested parties to ensure that the new government sticks to the rules of fair play and to the law.

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