Surendra’s US$4M pumps…Auditors tracking US$1M supposedly held by Indian EX-IM bank

Jun 12, 2016 News

Auditors are trying to determine whether the Indian Government is still holding a US$1M balance that was part of an Ex-Im Bank credit line.

The US$1,008,853 was part of a US$4M credit line made available to Guyana by India

Pine Ground, Mahaicony pump station.

for several drainage pumps for the coastlands.

According to a forensic audit report ordered by the coalition Government into the operations of the National Drainage and Irrigation Authority (NDIA), the acquisitions of the pumps were investigated by the forensic auditor, Nigel Hinds Financial Services.

However, the project faced numerous delays as the Indian contractor, Surendra Engineering Corporation Limited of Mumbai, after signing the deal on May 6, 2011, failed to deliver on commitments.

The eight fixed and six mobile drainage pumps were indeed delivered with Surendra being paid US$2,991,147.

Part of that money to the Indian company, which has since fled Guyana, included a sum of US$126,000 to supply spares.

Surendra did not supply those spares and on October 8, 2014, Government terminated the contract.

Auditors investigating the transaction said that the balance of the $4M- about $1M- was supposed to be still held by Ex-Im Bank of India.

“We are yet to receive a confirmation from Exim Bank through the Ministry of Finance that this balance exists,” the auditors said in their findings.

NDIA was the executing agency of the Ministry of Agriculture tasked with overseeing the arrival and installation of the pumps.

According to the report, NDIA were unable to provide auditors with the dollar credit line agreement, but it was learnt that the agreement was signed between the Government of Guyana and Export-Import Bank of India on July 26, 2010.

“The agreement provided for a Credit Line by Exim Bank to the GOG in the sum of US$4M for the purpose of acquiring, installing and commissioning of fixed and mobile pumps.”

Former Chief Executive Officer, Lionel Wordsworth, according to the audit report, indicated that he had rejected four of the pumps because of poor quality materials.

“There were significant delays in the shipments from India as was noted at several board meetings. The first batch of pumps along with auxiliary components along with engine, radiator and hydraulic hoses arrived in January 2013… the remaining pumps along with engine, radiator and hydraulic hoses arrived in March 2013.”

The complete units are presently installed at various locations:

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