AG’s findings at Education Ministry…Contractor still to supply $10M in equipment eight years later

Oct 28, 2016 News

Eight years on and a contractor is yet to supply the Ministry of Education with over $10 million in equipment. This situation has been highlighted in the 2015 Auditor General Report.
Although the Report does not name the defaulting contractor it did reveal that in 2008, the Ministry entered into a contract in the sum of $18.470 million for the supply of equipment for Technical/Vocational Projects. However, the contractor failed to honour the terms of the agreement, even though the Ministry had paid over the full contract sum.
According to the Report, “at the time of reporting in September 2016, equipment valued at $10.545 million had not been received, even though eight years have elapsed since the signing of the agreement and payment of the contract price.”
The Ministry, in responding to the findings, disclosed that it has engaged the Ministry of Legal Affairs for guidance on the way forward. The Audit Office has urged that the Ministry continue to monitor the proceedings in this matter.
The Auditor General has over the years been repeating this predicament annually, but there has been no reported attempt by the contractor to honour the agreed upon commitment.
In 2013, this publication had reported that failure to supply millions of dollars worth of equipment for Technical/Vocational Projects to the Ministry of Education had landed a contractor in court. The report was in reference to this aforementioned defaulting contractor.
It was reported that the Ministry had taken the supplier to court for a total refund of the remaining sum of $10.545 million, but evidently this did not materialise.
Meanwhile, this year’s Audit Report has highlighted that the Ministry was still to recover overpayments made to contractors totalling $1.485 million, with respect to schools, for the years 2010 and 2012, which remained outstanding.
According to the Audit Report, a sum of $398,000 was overpaid for works carried out on the Information Technology Laboratory at Charity Secondary school, while the sum of $202,000 was overpaid for works at the Central Corentyne Secondary School. An additional sum of $885,000 was overpaid for works on the New Wing of the Patentia Secondary School.
The Report has pointed out that the Head of Budget Agency has indicated that the Ministry continues to seek guidance from the Finance Secretary on the way forward.
The Audit Office has however, recommended that the Ministry “follow-up these matters to
ensure that the overpayments are recovered and the matters brought to closure”.

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