Fedders Lloyd local boss quits

Jun 19, 2016 News

…after being kept in dark

“I love Guyana more than my own country and thus feel sorry for this unfortunate development”- Ajay Jha

One day after news broke that Indian company, Fedders Lloyd Corporation Limited, has been dropped

I quit: Ajay Jha, Country Representative of Fedders Lloyd

as contractor for a planned Specialty Hospital at Turkeyen, its local head, Ajay Jha, said that he has quit.
Jha, in a statement to Kaieteur News yesterday said he had no clue of the ban on the company.
“This is to inform you that I have terminated all my contract with Fedders Lloyd after I was kept in dark by the Management of Fedders Lloyd about this World Bank issue related to African Country.”
According to the World Bank website, Fedders Lloyd has been banned from any of its contracts between April 6, 2016 and April 5, 2020.
The blacklisting reportedly had to do with procurement breaches that Fedders Lloyd committed in Africa since 2010.
“Fedders Lloyd explained to me that this issue in Nigeria was dragging since 2010 and they too were shocked when it was notified on 6th April 2016.They are going to appeal against it,” Jha said in his statement.
The former Country Representative had signed the contract last November on behalf on his company to build the Specialty Hospital on a corner plot of land located along the access road of the University of Guyana.
Jha said that he only learnt of the debarment after he was informed by contracts from the Government of India on April 26, 2016, while in Guyana.
“On my part, I immediately informed all concerned and left for India thereafter to terminate my contract with Fedders Lloyd on this ground. I love Guyana more than my own country and thus feel sorry for this unfortunate development. I thank everyone for all the support and co-operation.
“On my part I will continue doing whatever is good for my beloved country Guyana. My apologies if any of my words or actions have hurt anyone (sic).”
On Friday, Minister of State, Joseph Harmon, disclosed that the future of the Specialty Hospital was in limbo after the contractor was banned for four years by the World Bank.

Signs of the times? -Nothing doing at the Turkeyen plot of land, East Coast Demerara.

The company, Fedders Lloyd Corporation Limited, an Indian contractor, was selected late last year by the coalition Government as the alternate contractor after the previous one, Surendra Engineering Company Limited, was fired in 2014.
Fedders Lloyd was the second most qualified bidder for the US$18M project that had been initiated by the People’s Progressive Party/Civic Government.
The Specialty Hospital, which would have offered Guyanese special medical procedures that normally would have to be done overseas, was to be funded from a US18M line of credit from the Government of India through its Export-Import Bank.
However, in late 2014, Surendra which had been facing flak for delays in another state contract involving US$4M in drainage pumps, was fired after government said that the company submitted fake bank documents.
Surendra was taken to court and a $900M judgment was handed down last year January.
According to Minister Harmon, earlier this month, the High Commission of India in Guyana wrote the Government informing that Fedders Lloyd had been debarred and was no longer eligible for the project.
Harmon disclosed that the Indian government made it clear that it wanted a fresh tender process to select an Indian contractor for the project.
“By this decision, the Specialty Hospital is again put on hold pending the completion of fresh tendering to select an Indian contractor,” the Minister said.
According to Harmon, the Government of Guyana is worried about the US$13.8M balance as it is being significantly reduced by inflation, interest and other charges.
He said that as a result of these developments, the Ministry of Finance, Ministry of Foreign Affairs and Ministry of Public Health have been requested to “make certain enquiries” of the Indian government.
The findings, the Minister disclosed, will inform Cabinet on a definitive course of action on the Specialty Hospital.
Harmon also disclosed that the Attorney General’s Chambers is pursuing legal means to recover its $900M court judgment.
Other than some foundation works, and a few containers, not many activities have been going on at the Turkeyen site. A few piles have been driven and the security hut stands in the corner among the bushes.