Fraud accused PS cuts cheques for contractor before signing contract

Dec 18, 2021 News

…pays half immediately, balance weeks later

Kaieteur News – The Ministry of Amerindian Affairs last year not only sole sourced the purchase of 112 tractors and trailers for Amerindian Villages and Communities on the basis of market research and not competitive bidding, the cheques were drawn up for payment even before a contract was signed.

Fraud accused Permanent Secretary, Sharon Hicks

The state of affairs is documented in the Auditor General Report for 2021 covering a period when the now fraud accused, Permanent Secretary, Sharon Hicks, was the Accounting Officer for that Ministry and would have been responsible for such contracts.
The Auditor General in his report found that Cabinet granted its “No-objection” on 30 December, 2020 for the award of a contract in the sum of $446.880M for the supply and delivery of 112 tractors and trailers for the Amerindian Communities and Villages.
According to the report, the award was made using the single source method of procurement on the basis of market research, which revealed that Mahindra Tractors are the most economical tractors on the market with the four-wheel drive and 75 horse power needed for development in the Amerindian Communities/Villages.
Compounding the situation, it was noted that the contract was signed between the Ministry and a local supplier on 31 December, 2020—the last financial day for the year.
The contract stated that an advance payment of 50% of the contract sum shall be paid upon signing of the contract, whilst the final payment of the remaining 50% of the contract sum shall be paid upon submission of a payment bond.
The Auditor General found, however, that six transactions amounting to the contract sum of $446.880M were processed on 30 and 31 December, 2020; while, the cheques were drawn on 4 January 2021.
As such, it would mean that the now fraud accused Permanent Secretary for the Amerindian Affairs, cut the cheques for contractor before signing the contract, in order to ensure that the monies would not have to be returned to the Consolidated Fund.
Three subsequent payments amounting to $223.440M which represented 50% of the contract sum were paid on 13 January, 2021.
According to the Auditor General, the other three payments amounting to $223.440M representing the final payment on the contract were paid on 5 March, 2021.
Additionally, an Advance Payment Guarantee dated 30 December, 2020 was provided in the sum of $223.440M, with a validity period from 30 December, 2020 to 30 April, 2021, which is the duration of the contract.
Further compounding the situation, the supplier subsequently wrote the Ministry in April 2021 requesting an extension of time to supply the 112 tractors and trailers.
He said the basis of the extension sought was for disruptions “…due to several unexpected closures at the Mahindra Production Plant in India. As such, the production was delayed for a few weeks”.
The Ministry granted the extension up to 15 August, 2021, with the Ministry also amending the Advance Payment Guarantee resulting in a new validity date of 20 August, 2021.
According to the Auditor General’s findings, as of September 9, 2021, 103 tractors and trailers were recorded as having been received by the Ministry, and of these, 54 tractors and trailers were still at the Amerindian Dorms, Liliendaal; whilst the difference of 49 tractors and trailers were issued to various Amerindian Villages.
To this end, the Auditor General said “the intended benefits from the use of the tractors and trailers were being delayed” to which the Ministry responded saying “the late delivery of the tractors and trailers was of no fault of the Ministry, and that the delay is not material in nature or would compromise the intended purpose.”
Additionally, it was found that only 20 handing over forms were submitted for audit and “as a result, we could not determine the locations of the twenty-nine tractors and trailers, and whether they were handed over to the Villages, as reported.”
Meanwhile, Hicks was yesterday placed on $100,000 bail when she appeared in the Georgetown Magistrates’ Court to answer to the charge, ‘Corrupt transaction by agent.”
She was allegedly caught red handed taking a bribe during a police sting operation in October last.