Seven years later Reg. 7 RDC yet to recover $2.3M in overpayment to contractors

Seven years later Reg. 7 RDC yet to recover $2.3M in overpayment to contractors – PAC hears

Jul 23, 2024 News

Officials of the Regional Democratic Council of Region Seven during their appearance at the Parliamentary Public Accounts Committee (PAC) meeting on Monday

Kaieteur News – Seven years later, the Regional Democratic Council (RDC) of Region Seven is still to recover approximately $2.329 million in overpayments made to contractors for several projects done in the region.

This revelation was made during a meeting of the Public Accounts Committee (PAC) of Parliament which was held on Monday. PAC members on Monday afternoon were examining records relating to the Regional Administration which is documented in the Auditor’s General 2019 Report.

According to the report, the Regional Administration did not recover overpayments totalling $2.387M made in the years 2017 and 2018. The report detailed that three 2017 projects: Maintenance of Duplex Living Quarter at Mongrippa Hill (balance outstanding $1.441million); Maintenance of Shed in Beach View Nursery (balance outstanding $58,000); Maintenance of Bartica Secondary School (balance outstanding $564,000); and a 2018 project Maintenance to Doctor’s accommodation at the Regional Health Office, Bartica (balance outstanding $324,000), there were overpayments outstanding.

Highlighting these findings yesterday was PAC member and Opposition MP, Ganesh Mahipaul who asked the REO if the money has since been refunded to the region. Responding to the question, the current Regional Executive Officer (REO), Kerwin Ward told the PAC, “the maintenance of duplex living quarter at Mongrippa Hill, we haven’t recovered anything from it but finally we managed to make contact with the contractor who resides somewhere in Linden now, we made contact and he promised to come in to have a discussion on the way forward.” he continued: “the maintenance of the shed at Beach View Nursery, the $58,000 was refunded I have a copy of the receipt on me here. The maintenance of Bartica Secondary School (the) $564,000, we haven’t gotten any refund on that as yet but we engaged the contract who promised to do some refunds.”

He further revealed that as it relates to the maintenance of doctor’s accommodation at the Regional Health Office where $324,000 is outstanding, the contractor has passed away.

Kaieteur News learned that the contractor that was executing works on the duplex quarter was FS Contracting; contractor for the Bartica School was Ward’s Construction, while the contractor for the Regional Health Office was Chase Contracting, according to the REO.

With it being over five years with money still outstanding, PAC member and Minister of Public Works Juan Edghill asked the REO when last he wrote to the contractors about making good on their overpayment. “The last time we wrote is September 2023,” the REO responded. In his follow up, Edghill further asked, “based upon your understanding when there is an overpayment that is outstanding for a long time that there very well is a request for a write off, how do you deal with that?”

The REO yesterday informed the Committee that he is in process of engaging the Finance Secretary, Sukrishnalall Pasha, pertaining to the project where the contractor is now deceased “to get his guidance on the way forward to get this written off.”

The REO also informed the Committee that none of the contractors that he named has any current contract with the region. PAC member Gail Teixeira during the meeting had said that one of the contractors that was named is still getting contracts in the country, and asked the REO if they have since alerted the National Procurement and Tender Administration Board (NPTAB) on delinquent contractors they have dealt with. “And secondly when they do bid in your region does the tender board know of their past of what they have done and not done and therefore in their bid document they supposed to put in whether they have outstanding works with different agencies including what maybe cases in court…” Teixeira reasoned. In his response, Ward said that they do check the background of the contractors and “in terms of informing the national tender board, I know it has never happened before but we have put in place now for any contractors who default, we duly inform the NPTAB.”

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

contractors, million, overpayment, Regional Administration, Regional Democratic Council (RDC)

Latest News