Blacklisted company among contractors for EBD road link works

Dec 24, 2021 News

– gets $889M to build Lot 2 of project

Kaieteur News – A blacklisted company which was debarred by the now dismantled Public Procurement Commission (PPC) back in 2019, and remains on the list, has received a contract to the tune of $889 million to complete an aspect of the Eccles to Diamond road link, under the Ministry of Housing and Water.

The list of companies who were debarred by the Public Procurement Commission (PPC) back in 2019

On Wednesday, the construction firm V. Dalip Enterprise was awarded Lot 2 of the project, at a cost of $889 million. A total of $13.3B in contracts was signed by 12 contractors, which will pave the way for the new four-lane Eccles to Great Diamond highway. The signing took place at the Arthur Chung Conference Centre in the presence of the Minister of Housing and Water, Collin Croal, Minister within the Ministry of Housing, Susan Rodrigues and other senior officials within the Ministry.
The new four-lane project has been divided into 12 Lots and will measure some 9.4km of concrete road. Some of the features of the highway include heavy duty bridges, converts, 12km of drains, concrete medians, solar street lights, two roundabouts and an emergency lane. The duration for this project is 15 to 18 months and works will begin from January 2022.
In 2019, V. Dalip Enterprise was listed on a circular, addressed to all procuring entities from the PPC, advising them that no contract shall be awarded to an entity that has been debarred by the Commission. Among the companies or individuals who were blacklisted until 2030 are Mr. Vevakanand Dalip and Vevakanand Dalip Enterprise appeared at least thrice on the list, given that three addresses were listed for the company or individual.
The other individuals or companies who remain on the blacklist include Ms. Sabrina Mary Williams, Invepar Construtora Ltda-Me, Ron Jaisari, Sidrai Enterprises and Abel Khemraj Rai. The suspension took effect in October 2019, after the list was officially gazetted on June 21, 2019.
In addition to receiving a local suspension, the Inter-American Development Bank (IDB) had also barred Vevakanand Dalip Enterprises and Vevakanand Dalip, its principal from participating in IDB contracts, for the period December 29, 2017 to December 28, 2030.
Dalip was blacklisted by the IDB for “Fraudulent and Collusive Practices”.
Dalip, reportedly based in Lethem, Region Nine, has been bidding for state contracts.
Though it is not the first time that a local contractor and individual has been barred by IDB, it must be noted that the institution is one of the biggest funders of government projects.

It was learnt that a previous Coordinator of the Citizen’s Security Programme, Abel Khemraj Rai, was banned for eight years from August 23, 2016 to August 22, 2024.
Four other companies and individuals that seem to have connections with Rai – including Sidrai Radiator Works, Sidrai Enterprises, Siddaharta Rai and Ron Jaisari – were also sanctioned and banned for four to eight years. “Debarred firms are declared ineligible to be awarded and participate in any IDB-financed contract for the periods indicated. Ineligibility may extend to any firm or individual who directly or indirectly controls the debarred firm or any firm which the debarred firm directly or indirectly controls. In the case of a debarred individual, ineligibility may extend to any firm which the debarred individual directly or indirectly controls,” IDB explains on its website.
However, even though these measures are outlined by the financial institution, Guyana has made zero provisions in this regard and in fact has clearly ignored the command given by the PPC.
Local watchdogs have intensified their call for the PPC to be reassembled, given the current irregularities that continue to take place, daringly, before the eyes of the public.
Only recently, a contract was issued to a company with no public experience in construction work. Nevertheless, the ‘fly-by-night’ company, St8ment Investment Inc. has been granted a whopping $346 million contract to build a new Primary School at Bamia in Region 10, although the Procurement Act of 2003 clearly states that suppliers and contractors seeking Government projects must substantiate their past performance with the necessary documents for consideration.
Leader of the Opposition, Joseph Harmon has accused the People Progressive Party (PPP) of dismantling the PPC and replacing it with a system that in turn benefits Vice President, Bharrat Jagdeo.
Harmon, during a news conference last month explained, “The PPP Administration decided that they would take a grip on the Public Procurement Process, to ensure that only those persons and companies that support them get any form of contracts from the Government.” He added, “What they have done, they have dismantled the Public Procurement Commission; they have dismantled the National Procurement and Tender Board Administration and replaced them with a system which leads directly to Bharrat Jagdeo.” Harmon said that due to the Commission not being in place, the Government has been awarding contracts to their friends and family, who they hope will in return keep them in power.