Corruption, incestuous relationship in Region 8 contracts – Mahdia Chamber of Commerce

Apr 06, 2017 News

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A senior Region Eight executive has raised alarm over the spending of tax dollars in that area, without proper procurement procedures being followed. Not only are millions of dollars being granted in contracts by regional officials under unclear circumstances, but it appears there are quite a number of cases of conflict of interest and incestuous relationships.
Yesterday, Executive Director of Mahdia’s Chamber of Commerce, Daniel Fraser, disclosed that the matter is being raised officially with the Regional Executive Officer (REO), Rafel Downes, and if that fails to spark any changes, the higher authorities will be engaged.
“We have prepared a letter for the REO who is the chairman of the region’s Tender Board. But he has left for the city. The matter has been discussed by the Chambers and we are heavily alarmed at the situation.”
Chief among the concerns of Mahdia’s businesses is the fact that there are no clear attempts for transparency in contracts.
“This year we have $1.63B budgeted for the region. We are convinced that the tender process has been hijacked. There is little or no advertising for projects and contracts, and sometimes you only learn of the contracts after you see someone from outside of the region coming here and start working.”
In one case, although Mahdia, the capital of Region Eight, has several mechanic shops, someone was hired to come and do work on heavy duty equipment. One bulldozer was left unrepaired because of a dispute over monies.
“There are many more cases like this. The contracts and projects are being handled in a clandestine manner. We see cases of contractors, some who are relatives of the officials, being handpicked. And we are talking about projects around here. We are not even sure about projects that are happening over the hill.”
According to Fraser, one of the most puzzling things is that the Ministry of Finance in its Performance Index of the 10 regions across the country has rated Region 8 as number one.
“We are not sure how this is happening. Take for example, a health centre was done in 2015. In 2016, the region spent millions more to fix it again.”
In one case, a contractor with a self-employed NIS compliance has managed to receive several contracts over more qualified companies who meet the requirements and have more employees.
There is even a case where a chairperson of an evaluation committee sat in a meeting overseeing the evaluation of a contract for a close family member.
In another case, Fraser alleged almost $100M was allocated to the region last year to off-set dietary needs of the school population at Kato Secondary School. This billion-dollar school is still incomplete, but the $100M was spent.
Fraser claimed that in one case, a husband of a senior evaluation official was a contractor supplying the North Pakaraimas with dietary goods and services – again there was no evidence that there was a public tender.
In the case of stationery, the region seemed to have bypassed established procedures too, Fraser charged.
“Yet hundreds of millions are expended every year! The business community suffers as there is glaring evidence of unfair competition. When are these injurious, prejudicial illegalities going to end and when will redress be meted out to our few citizens with the high budgets they get nothing from,” Fraser wrote on his Facebook page.
In the cases of where tenders are evaluated, Fraser listed instances of these being opened and disqualified companies and persons being accepted. He pointed to another case involving an old incinerator in the Mahdia District Hospital compound, which was constructed in 2007 for some $900,000.
“The Regional Administration has now allocated $11M to construct one (8’x8’x6′) of clay blocks, no drawing available.”
Fraser said that in that very compound a storage bond and a kitchen are being constructed for $4M and $2.175M respectively.
“The laugh is that the kitchen and bond are 25’x25′ same design and measurement. Why the fancy pricing… two same buildings with vast discrepancies in price but total together (50’x50′) cannot come near the construction of a 8’x8’x 6′ incinerator, but together is the cost of repairing a house roof of about 25’x25′?”
In another case, $6M was earmarked to repair the roof of the REO’s accommodations while $3M was allocated to do general repairs to the deputy REO’s chain-link fence of which it is alleged that $1.3M was “paid out to through un-tendered contract during the later part of 2016. The fence was only partly completed last year but monies were paid out…wallaba posts are still under the house.”

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