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Chung’s Global threatens to sue City Hall over $478M outstanding payment
The list of companies stepping forward to accuse the Georgetown Mayor and City Council (M&CC) of not honouring its financial obligations continues to grow.
Chung’s Global Enterprise claims that the city owes it $478.3M.
Attorney-at-Law Nigel Hughes wrote to Town Clerk, Royston King, on behalf of Cleon Chung, the CEO of the company, claiming that services were provided to the M&CC. King was sent on leave to facilitate a probe.
According to Hughes, “We are further instructed that despite the several request of our client for payment, the Georgetown Mayor and City Council has failed to pay.”
The company advised that they would prefer that the sum be paid without delay given Chung’s commitment to employees and sub-contractors are significant.
Hughes pointed out that in the event of the continued failure of the Council to honour the debt will leave Chung with no other alternative, but to pursue any and all available remedies. Kaieteur News understands that a complaint regarding the monies owed to Chung’s Global has been filed with the Commission of Inquiry (CoI) which was empanelled to investigate the operations of City Hall.
Town Clerk, Royston King
During public hearings, the CoI received similar reports from other companies. The CoI also heard that the Chung’s Global received a contract to undertake cleanup work for City Hall without passing through a tender process because city officials termed it as ‘emergency work’. One job classified as such was the cleaning of Le Repentir Cemetery.
Early in the Commission’s public hearings, a private construction company accused the Council of owing it $135M for clean-up works it carried out around the city.
Finance Manager of XL Engineering Aysha Harrop told the CoI that the works were conducted during the city-wide cleanup campaign in 2015.
According to Harrop, XL Engineering conducted site cleaning and removal of debris on behalf of City Hall, as well as clearing of weeds in the cemetery from the year 2015.
The work, she added, cost $150M. Harrop however explained that the company did not sign a contract with City Hall, since the Town Clerk told them the work was an emergency.
Former Deputy Mayor of Georgetown, Sherod Duncan, had previously pointed to several instances in which he says Town Clerk King bypassed the prescribed procurement process for the doling out of contracts.
Duncan raised concerns at the manner in which the City’s administration dealt with the distribution of contracts by classifying them as ‘emergency’.
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