Absence of in-house engineer affects monitoring projects at Business Ministry

May 25, 2017 News

As a measure to ensure that quality work is being done with taxpayers’ money, it is recommended

Minister of Business, Dominic Gaskin

that expertise and technical personnel are employed to monitor such works. However, this is currently lacking in the Ministry of Business as it does not have an in-house engineer to ensure that contracted works are done in accordance with the agreements.
This was highlighted during the Public Accounts Committee (PAC) meeting on Monday when the Auditor General’s 2015 Report on the Accounts of the Ministry of Business were scrutinised. Attention was given to a contract that was awarded in 2014 when the agency was called “The Ministry of Tourism Industry and Commerce.”
The contract was to the tune of $183.963M for infrastructure development works at the Lethem Industrial Estate. According to the AG’s Report, as at December 31, 2014 amounts totalling $76.991M was paid on the contract and the sum of $99.432M was paid in 2015. This brought the total sum of the contract at December 31, 2015 to $176.423M.
One of the observations made by the Auditor General’s report is that as a result of poor supervision of the works, various sections of the finished road surface were not completed to the required thickness as was required by the contract.
Further, it was noted upon inspection that the Bill of Quantities for the project specified a 51mm or two inch thick compacted layer of asphalt to the carriageway and shoulders. However, the thickness of the finished asphalt was inconsistent with variances ranging from two inch thickness to quarter inch or less in thickness.
It was recommended by the Auditor General, Deodat Sharma, that the Ministry ensures that all works undertaken are done in accordance with the specifications outlined in the contracts.
On Monday, Permanent Secretary of the Ministry of Business, Ms Rajdai Jagarnauth, was asked by a member of the Committee and APNU+AFC Parliamentarian, Audwin Rutherford, whether corrective measures have been put in place to ensure work on contracts are done in accordance with the contractual agreement.

PAC Chairman, Irfaan Ali

Jagarnauth explained to Chairman of the PAC, Irfaan Ali that for current works the Ministry has stepped up its monitoring system. She said that in the past there were lapses in the monitoring of work that is being undertaken at the Lethem Industrial Estate.
She added, “The fact that the Ministry does not have an engineer on board, it has proven a bit difficult.” Ali questioned how then it is possible for the Ministry to improve its monitoring in the absence of an engineer.
Jagarnauth said that systems have been put in place to have more frequent visits conducted by officials of the Ministry. She said that when the Ministry had an engineer on-board there were not frequent visits being done to these sites due to the location of sites and financial resources of the Ministry.
The Permanent Secretary admitted following questioning that she is not satisfied with the Ministry not having an engineer. She said that the position is currently being advertised and is currently waiting on the Public Service Commission to conduct interviews.
The Ministry has been without an engineer since July 2015 and the position was advertised since October 2016.
Further, Committee Member and People’s Progressive Party Civic parliamentarian, Juan Edghill, questioned if the PS was satisfied with the Ministry’s capacity to carry out Capital Projects.
Jagarnauth admitted that she is not satisfied in terms of the Ministry’s capacity, citing the shortage of staff, particularly the lack of an engineer.
She added that in light of this, the Ministry is trying to engage consultancy firms to assist with the supervision of the works. Currently, the project at Lethem is on phase two and contractors are on the ground completing works.
When the Auditor General’s office conducted a physical verification of the project in August 2016, the works were completed. However, the report noted that the final payment voucher was not submitted for audit scrutiny.
Consequently, payments made could not be matched against the completed works to determine the correctness of the payment made. Regarding the contractor, ACAP Construction and Engineering that performed the shabby work, the PS informed the committee that efforts have been made to contact the firm but the owner has since left the country.
Ali then asked the Auditor General to look into the matter.