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Need for a sound prequalification system to select project contractors
Dear Editor,
According to the recent news report, the Auditor General disclosed in his 2021 report that the local contractor Vevakanand Dalip Enterprises who is currently blacklisted by both the Public Procurement Commission of Guyana (PPC) and the Inter-American Development Bank (IDB) up to the year 2030 had awarded eight contracts.
However, this is not an isolated case. Pursuant to some additional findings, it commands attention that China CAMC Engineering Company Limited, who is participating in the construction of the Government’s newly awarded six Regional Hospitals Project, is still on the blacklist of the World Bank till 26th October, 2026.
Information found shows that China CAMC Engineering Company Limited is a subsidiary of China National Machinery Industry Corporation (Sinomach), and due to its violations of integrity rules, the said company has also been banned by the Asian Development Bank (ADB).
Read more at:
https://kaieteurnewsonline.com/2022/07/22/agreements-signed-for-construction-of-multi-million-regional-health-care-facilities/
https://www.sinomach.com.cn/en/AboutUs/MemberCompanies/
https://www.worldbank.org/en/projects-operations/procurement/debarred-firms
https://www.southasiamonitor.org/china-watch/adb-blacklists-three-chinese-firms-nepals-key-infrastructure-projects-kathmandu-airport
According to previous findings, two other companies also related to Sinomach are China Machinery Industry Construction Group, Inc. (SINOCONST) and China Machinery Engineering Corporation (CMEC). SINOCONST participated in the construction of Skeldon Sugar Factory and was debarred by the World Bank due to its deceptive practices. CMEC is one of the companies bidding for Wales Gas Plant project.
Sinomach’s operational masking shows the methodologies that some companies use in Guyana’s construction market. Power China, who was ranked number two in the Wales Gas-to-Energy project tender evaluation, experienced a complicated structure in its development and is actually its previous Overseas Business Department, Sinohydro Group, and HydroChina Corporation.
http://www.chinadaily.com.cn/m/powerchina/2019-09/26/content_37512579.htm
http://www.chinadaily.com.cn/m/powerchina/2019-01/10/content_37425189.htm
Sinohydro was awarded the US$31.03M IDB Project for the Sheriff Street-Mandela Avenue expansion in December 2017. In 2019, IDB has suspended disbursement to the project due to the negligence of Sinohydro.
https://dpi.gov.gy/idb-halts-crucial-funding-of-sheriff-mandela-road-project-citing-delinquent-contractor/
https://kaieteurnewsonline.com/2019/11/19/sheriff-st-mandela-ave-project-idb-suspends-payments-to-chinese-contractor/
Sinohydro also has a history of being blacklisted by both the World Bank and the African Development Bank.
https://www.afdb.org/en/news-and-events/integrity-in-development-projects-african-development-bank-and-sinohydro-reach-settlement-agreement-on-fraudulent-practice-18158
https://kaieteurnewsonline.com/2021/11/01/chinese-firms-tendering-for-amaila-falls-project-were-blacklisted-for-procurement-fraud/
Taxpayers and concerned citizens can’t help but ask how these companies with a checkered past can easily pass the pre-qualification screening? Do we have the necessary resources to execute such screening? Do we have powerful legitimate agreements to secure ourselves? Because, at the end of the day, it will be us, the Guyanese people to pay for them!
We note that Government has recruited and terminated a Spanish consultant upon the debarment by the World Bank. We continue to stress the need to ensure that there is proper due diligence and standards compliance with the selection and development of these projects to prevent this kind of drama and secure the interest of our people.
Yours sincerely,
Mathew Khan
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