Health Ministry upgraded Diamond Hospital without NPTAB’s approval

Jan 09, 2020 News

The Ministry of Public Health committed a “red flag” act, after the agency extended the contract for the upgrade of the Diamond Diagnostic Centre without the approval of the tender administration board.
The contract was awarded in the sum of $21.480 million on October 11, 2016 and signed on October 17, 2016. The duration of the project was expected to last three months and therefore, the works were expected to be completed on January17, 2017.
However on January 30, 2017, the Health Ministry and the contractor signed an Addendum for additional works valued at $18.293M, which increased the contract sum to $39.773 million.
The Auditor General (AG), Deodat Persaud, in this 2018 report was keen to note that at the time of his reporting in September 2019, still no approval was granted from the National Procurement and Tender Administration Board (NPTAB) to increase the contract sum or vary the contract.
It is clearly stated in the Procurement Act of 2002 that “… procurement referred to in subsection two where and to the extent to the procurement entity, is subject to the approval of the National Board.
Each supplier or contractor is permitted to give only one price for quotation and is not permitted to change the quotation. No negotiations shall take place between the procuring entity and a supplier and contractor with respect to a quotation submitted by the supplier or contractor.”
While evidence was seen where the Health Ministry wrote to NPTAB on the December 4, 2017 requesting approval for the additional works, no approval was seen at the time of reporting.
The Ministry of Public Health had already processed Ministry’s payments totaling $38.256 million.
According to the Health Ministry’s response, the Head of Budget Agency indicated that (a) the project at the time was 98% completed.
The said works were delayed due to the sourcing of specialised flooring material from the United Kingdom (UK), for the isolation room; and a letter was sent to NPTAB on 25 January 2018 requesting approval to extend the current contract from ($18.293M) to ($39,773M).
“The Ministry is awaiting approval and final valuation,” they added.
The Auditor General recommended that the Head of Budget Agency desist from making payments for additional works without the approval of the requisite Tender Board and provide for audit examination copies of the signed contract, advance payment and performance bonds, details of the additional works and the final valuation certificate.

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