GuyOil defends termination of contracts -CEO denies contacting Trini. exec for bribe

Oct 16, 2019 News

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Days after a Trinidad and Tobago contractor claimed that three contracts were suddenly terminated because they refused to pay a bribe, the Guyana Oil Company (GuyOil) has defended its decisions.

According to the state-owned company, which manages a number of gas stations across the country, it is also refuting insinuations, contained in the report by Kaieteur News on Sunday, that one of its own called the contractor and asked for a bribe.
According to a lengthy statement from GuyOil, three contracts were signed with Commissiong and Company Limited.
Commissiong says it is seeking damages as a result of the contract terminations because it had spent money to start.
It said that it submitted a Trinidad performance bond and this was accepted.
The Trinidad Company said that its three contracts were terminated on that grounds that it failed to submit a local advanced payment bond.
However, GuyOil explained in its statement that invitations for bids were publicly advertised on February 2, 2019 for the supply of one Canter truck and the supply, fabrication and erection of two 10,000 gallons tanks.
On February 17, 2019 an invitation for bids was also advertised for the supply of one Rigid Tank Wagon (RTW).
The tenders for all three contracts were opened on February 25, 2019.
There were four respondents for the supply of the Canter truck and four for the supply, fabrication and erection of the two 10,000 gallons tanks.
Two bidders responded for the supply of one Rigid Tank Wagon (RTW). GuyOil explained that in accordance with its tender policy, the bids were evaluated by the company’s Evaluation Committee. The Chief Executive Officer (CEO) of the company is not part of the evaluation committee.
It was found Commissiong and Company Ltd was the most responsive bidder for the supply, fabrication and erection of the tanks.
“Therefore, the Evaluation Committee recommended Commissiong and Company Ltd be awarded this contract to the Board’s Tender Committee. The Board’s Tender Committee is a sub-committee of the Board.”
GuyOil disclosed included in the bid documents for Commissiong and Company, was a bid security from Furness Anchorage General Insurance Limited (Trinidad & Tobago Firm).
“The Board’s Tender Committee made the recommendation to the Board of Directors for the award of the contract to Commissiong and Company Ltd and this was ratified and approved by the Board.”
In fact, it was revealed that the notification of award and acceptance requires a Performance Bond submission.
“Commissiong and Company Ltd submitted a Performance Bond from Furness Anchorage General Insurance Limited. Following this a contract was signed with Guyoil on May 24, 2019.”
Commissiong and Company was deemed the most responsive bidder for both truck tenders.
“Included in their bid documents, the company submitted local insurance bonds for both the bid security and the performance bonds.”
This is where things got sticky.
After the signing of all contracts, an advance payment security is required.
GuyOil said that the contracts stipulate that the company was required to submit an Unconditional Bank Guarantee in a form and by a bank acceptable to GuyOil, in amounts equal to the advance payments.
“Guyoil’s Finance, Audit and Administration Committee (FAAC) (a sub-committee of the Board) recommended to the Board that the acceptable form for all Unconditional Bank Guarantees must be from a local entity. The Board approved the recommendation made by the FAAC.”
GuyOil said that this was communicated to the Trinidad Company on July 18, 2019 via email by Guyoil’s Facilities Manager.
However, an unhappy Commissiong in a lawyer’s letter pointed out that GuyOil had accepted international bonds for the bid security and performance for all the contracts they were awarded.
“GuyOil on August 30, in response pointed out that an advance security is required after the signing of the contracts, and the contract clearly stipulates that the contractor must provide “an Unconditional Bank Guarantee in a form and by a bank acceptable to the Employer in amounts equal to the advance payment”.”
GuyOil said that this meant therefore, that the provision of international bonds will not be an acceptable form of advance security from Commissiong after the signing of the three contracts.
“There was no response from Commissiong and Company Ltd. After which a second notification was sent on September 10, 2019 giving the company 14 days to submit their local advance security. Commissiong and Company Ltd through their attorney responded on September 11, 2019 and stated it is incorporated in the Republic of Trinidad and Tobago and all of its assets are based in Trinidad and therefore, they are unable to provide local advance security.”
In fact, Commissiong requested that Guyoil issue the advance payments within 14 days for all three projects.
GuyOil said that as a result, its Board at its statutory meeting on October 2, 2019 took the decision to terminate all three contracts.
“The contracts were terminated in keeping with clause 10.1 (a) of contracts. Commissiong has failed to perform its obligation as per clause SCC 6.1. This clause states that an advance amount is required to be paid upon the submission of a “…simple receipt and a bank guarantee for the equivalent amount, and in the form provided in the bid documents or another form acceptable to the Purchaser”.”
Guyoil made it clear that all tenders are recommended by the Board’s Tender Committee and approved by the Board of Directors.
“The CEO does not have any influence over this process and denies that she was ever in contact with anyone from Commissiong and Company Ltd. Guyoil therefore views the reports by Commissiong and Company Ltd as presumptuous, malicious and slanderous, Guyoil rejects their attempts to discredit the company’s procurement system. Guyoil prides itself on transparency and integrity in its operations.”
GuyOil said that as the largest petroleum distributor in Guyana, its remains committed to serving the nation with integrity and dedication and subscribing to GUYOIL’s objective in providing excellence in service.

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