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Five years later, Reg. 1 RDC still to recover $5.2M in overpayments to contractors – AG Report
The completed Thomas Hill Bridge that was highlighted in the 2020 AG Report.
Kaieteur News- Five years later, the Regional Democratic Council (RDC) of Region One is still to recover approximately $5.281 million in overpayments made to contractors for two bridge projects done in the region.
This is according to information provided in the 2023 Auditor General (AG) Report which highlighted that, “The Regional Administration had still not recovered overpayments totalling $5.281M for the year 2019, as shown in the table below.”
According to the report, in 2019, the contractor was awarded the contract to construct a reinforced concrete bridge at Thomas Hill. Some $2.167 million was paid to the contractor as a mobilization advance.
The table showing the two bridge projects undertaken back in 2019 and the amount overpaid. (Five years later, Reg. 1 RDC still to recover $5.2M in overpayments to contractors – AG Report)
Another contract was awarded for the construction of a reinforced concrete bridge at Mora, Moruca and a mobilisation advance of $3.114 million was made bringing the total amount overpaid to $5.281 million, the AG reported.
This publication understands that in the Auditor’s General 2020 Report, it was revealed that the contract for the construction of the reinforced concrete bridge at the Thomas Hill main access road was awarded in 2019 to the value of $7.222 million.
“The basis of award for this contract could not have been determined, since the RTB (Regional Tender Board) minute was not presented for audit scrutiny. The contractor received a 30% mobilisation advance payment in the sum of $2.167M, even though the General Conditions of Contract (GCC) Clause 3.1 specified that mobilisation advance shall be at the rate of 10% of the contract price,” the 2020 Report stated.
In the same 2020 report, it revealed that the contract for the bridge was terminated by the Regional Administration with effect from November 11, 2020 due to work being delayed for more than twenty-eight days without being authorised by the engineer.
“The Regional Engineer has indicated that no work was done by the contractor and the contractor was required to repay the mobilisation advance. Audit checks revealed that there was no evidence that the contractor repaid the mobilisation advance of $2.167M, either in cash or the Regional Administration levied on the advance bond guarantee, if any,” the AG 2020 Report detailed.
Following the termination of the initial contract, the project was re-awarded to a new contractor in December 2020 in the sum of $5.500M. Upon inspection in July 2021, it was disclosed that the project was completed.
In the 2020 AG Report also, it noted that the contract for the bridge at Mora in Moruca was awarded in 2019 to the value of $10.381 million.
Similarly, that contractor received 30% mobilisation advance payment in the sum of $3.114 million.
It was noted however, that the contract was terminated by the Regional Administration with effect from November 11, 2020, due to the contractor delayed work for more than twenty-eight days without being authorised by the engineer.
According to the 2020 Report, “The Regional Engineer has indicated that no work was done by the contractor and the contractor was required to repay the mobilisation advance. Audit checks revealed that there was no evidence that the contractor repaid the mobilisation advance of $3.114M, either in cash or the Regional Administration levied on the advance bond guarantee, if any.”
Notably, that project was also re-awarded to a new contractor in December 2020 in the sum of $5.200M.
Having it been some five years since the overpayments are yet to be recovered, responding to the AG’s finding in the 2023 Report, the RDC indicated that the contractors were written to have refunds be made as soon as possible. “Additionally, the Regional Administration is currently seeking legal advice from the Attorney General Chambers,” the report revealed.
In its recommendation, the Audit Office recommended that the Regional Administration takes steps to recover the overpayments and put proper systems in place to avoid recurrences.
(Five years later, Reg. 1 RDC still to recover $5.2M in overpayments to contractors – AG Report)
- Auditor General 2023 report, Mora, overpayment, Region Democratic Council of Region One, still to recover, Thomas Hill
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