$148M Demerara River Bridge Contract… Board learned GM signed deal from media reports

Aug 12, 2018 News

– former Deputy Chairman

DHBC General Manager Rawlston Adams

The Board of the Demerara Harbour Bridge Corporation (DHBC) was in the dark about the deal signed for consultancy services for the new Demerara River bridge project with a Dutch company.

The deal signed in December 2016 between the DHBC and LievenseCSO Engineering Contracting BV is now at the centre of corruption allegations.

Former Deputy Chairman of the DHBC Board, Joseph Holder told Kaieteur News that in 2016, the Board found out from media reports that General Manager Rawlston Adams had signed the agreement to provide consultancy services for the design of a new bridge.

Holder explained that Adams was overseas and missed the board’s monthly meeting in January. The former Deputy Chairman explained that Adams attended the February meeting.

Holder recalled that Board members raised numerous questions and concerns as to why Adams signed on behalf of the bridge company when he was not authorized to do so by the Board.

“On December 9, 2016, the Board of Directors was made aware by the news media of the singing of a contract between DBHC and LievenseCSO for the execution of a feasibility study for a new bridge across the mouth of the Demerara River,” Holder disclosed in a signed statement shared with Kaieteur News.

The Public Procurement Commission (PPC) based on their investigations produced a report that detailed procurement breaches in the award of the contract.

The report stated that Adams informed the PPC that the Board of the DHBC was not a party to the decision to use the funds approved by the Cabinet.

He further informed the PPC that he had not signed the contract on behalf of the DHBC, but only because he was requested to do so by the Minister of Public Infrastructure, David Patterson.

According to the PPC investigation, the DHBC is listed as the client in the contract.

According to Holder, DHBC Board was subsequently informed that the contract was the result of a paper submitted to Cabinet by Patterson, following which, Cabinet decided that the feasibility study should be executed by the Dutch firm and that the cost of the study should be charged to the Asphalt Plant account of the DHBC.

The PPC report indicated that the Ministry received an unsolicited proposal from LievenseCSO Engineering Contracting BV, to provide consultancy services for the bridge project.

According to the PPC, Patterson, by way of a Memorandum dated November 18, 2016, made a request to Cabinet seeking consideration and approval to use funds from the Demerara Harbour Bridge Corporation (DHBC).

Specifically, Patterson requested funds from the company’s asphalt plant accounts to fund the feasibility study and commence a contractual arrangement with Dutch company, as of January 1, 2017.

The PPC in its investigation found that the Minister’s request to Cabinet was not forwarded through the National Procurement and Tender Administration Board (NPTAB).

Based on the PPC report, the submission by Patterson, directly to Cabinet, was in breach of the Procurement Act.

The PPC conducted the investigation of the contract award process based on a request from Opposition Chief Whip, Gail Teixeira.

The PPC found that the procurement procedure used to select the company did not meet the requirement of any of the methods described in the Procurement Act. Besides, there is no procedure that defines how a procurement entity should deal with ‘unsolicited proposals’.

LievenseCSO had submitted a 57-page final report, in which it recommended that the proposed location of Houston-Versailles was the most ideal – with a three-lane structure and moveable part to allow for ships to pass through.

It was the best model, at the least cost, the consultant recommended.

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