Forensic Audit to be conducted into $413M Leguan Stelling Contract

Aug 13, 2020 News

– Six-month contract to resume after two year hiatus.

Section of the collapsed Leguan Stelling.

The section of the stelling used for mooring of the ferry.

Almost two years after it was initially awarded, the $413M contract to rehabilitate the Leguan T.H.D. stelling is set to restart soon but with no clear explanation of why works on what suppose to be a six-month contract was stalled; because of this, a forensic audit is due to be launched into the project.
Speaking with Kaieteur News yesterday, Minister of Public Works Juan Edghill stated that the contract, which was awarded to S. Maraj Contracting Service by the National Procurement and Tender Administration in September 2018, was scheduled to be completed within a six month period; however, works were halted as a result of a few months after its initial commencement.
In an article published in Kaieteur News in December 2019, the then Minister within the Ministry of Public Infrastructure Jaipaul Sharma had stated that the initial contract was awarded in September of 2018; however, due to a number of hiccups, the contractor was mobilized after more than a year with construction commencing in December 2019. It was also reported that two days after initial construction began, the contractor was forced to halt its works after a section of the stelling had collapsed. It was further reported that works were set to recommence days after.

Minister of Public Works, Juan Edghill.

However, according to Minister Edghill, the rehabilitation works were in fact halted as a result of bad management on the part of both the contractor and supervising engineer. The minister explained that, in the initial agreement made between the contractor and Transport and
Harbors Department (T&HD), the contractor was expected to reuse salvageable materials in an effort to reduce cost – however, the contractor insisted on purchasing new materials.
“The problem which resulted in the extensive delay in the execution of the contract, stemmed from a breakdown in communication between the contractor and the supervising engineer. The Management system was not at all robust,” the minister said, adding that, “however, we have begun talks to ensure a new work programme is put in place since the right administrative thing needs to be done.”
The minister on Tuesday met with the contractor and members of T&HD to discuss a solution that would see the timely conclusion of the project. After two days of deliberations, Minister Edghill noted, that the contractor had committed to restart the rehabilitation works immediately. In addition to this, the Minister stated that the Ministry of Public Works will be conducting a forensic audit of the contract.
“It was disclosed in the meeting,” the minister told this paper, “to both the contractor and the agency responsible for overseeing the execution of the contract, that the ministry will be conducting a forensic audit to get a true reflection of the project. This will be done so that we can measure the work that was done by the contractor and compare it to the monies that were collected by the contractor.”
This, the minister said, will be done with the singular intent to ensure the beneficiaries of the stelling get what they rightfully deserve. He further noted that so far, the contractor has received a 15% mobilization advance along with an interim payment. The minister was at the time unable to provide Kaieteur News with details of the total amount of monies given to the contractor to date. Moreover, Minister Edghill stated that no further monies will be allocated to the contractor until the Ministry is satisfied with the works conducted by the contractor.
In a release made by the Ministry of Public Works late last evening, it was announced that rehabilitation works to the Leguan Stelling will commence from August 13th 2020.

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