Sole sourcing in disguise?...Payments suggest contract splitting at GECOM

Sole sourcing in disguise?…Payments suggest contract splitting at GECOM

Sep 09, 2016 News

As state auditors continue their probe of a $100M purchase of communication radios for the May 11th 2015 elections, there are disturbing indications that all was not right with the procurement systems at the Guyana

According to payment records, GECOM last year appeared to favour one businessman, doling out almost $290M in contracts.

Elections Commission (GECOM).
According to Government records of spending at the entity, one businessman at the centre of the radio supply probe received almost $290M in contracts for supplying items to GECOM last year.
There is nothing much wrong with that, except that the businessman, Michael Brasse, had at least three companies that were doing business with the commission.
And if that does not seem suspicious enough, the pattern of payments seems to suggest that some amount of contract-splitting was involved, so as not to alert auditors and others who would have been watching.
Three companies linked to Brasse – Mobile Authority, M-Tech Business Solutions and Mibra Trading – eased up doing business with GECOM after the elections results came out and the David Granger-led administration was sworn in.
According to records seen by Kaieteur News, Brasse appeared to be a preferred supplier for stationery for GECOM. He delivered items such as toners, office furniture and equipment, photo paper and scanners, printing accessories, and even Duracell batteries.
Shortly before the elections, on April 5th, he was paid $99,560,000. This was for HF radios. For this, a business called Mobile Authority was used.
The Audit Office of Guyana has started an investigation to determine the procurement procedures used and whether the radios can be accounted for.
GECOM has refused to comment on the radio purchases from Mobile Authority, only saying that there is an ongoing probe by the Audit Office of Guyana.
GECOM in a statement said: “Thank you for contacting us with reference to the “Audit Story” carried in your newspaper. However, as referenced in your story, an investigation is being conducted by the Audit Office of Guyana and as such, we will not be able to provide answers at this time.”
The financial records would also tell a story of some strange payments made to Brasse’s companies.
For example, on February 3rd, 2015, there were six payments totaling over $43.2M – four of them were for toners while two payments were for the supply of stationery.
Why there was not one order for toners is unclear.
Strange enough, two of the payments to M-Tech Business Solutions were similar – that is, two amounts for $2,492,590 – representing payments for stationery.
On February 13th, M-Tech received a payment of almost $15M for office furniture.
The business entity received three major payments between February 9th and February 25th totaling – $43.6M for photo paper, stationery and office furniture.
It was clear that compared to other entities, Brasse and his businesses received the hog’s share.
In May, Brasse’s businesses were paid on six occasions, for contracts totalling $144M. These were for the HF radios, four contracts for the supply of toners and one for Duracell batteries.
There was not much business for the businessman after elections, until late September when he was paid over $376,000 for the supply of electrical items. For this supply, he used a business called Mibra Trading.
GECOM’s Chairman, Dr. Steve Surujbally, when contacted, explained that the Commission is not involved in the day-to-day operations of the secretariat as there are staffers designated for that purpose.

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