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Nandlall says billions in liquidated damages imposed in Govt’s fight against corruption
Attorney General, Anil Nandlall, SC (Nandlall says billions in liquidated damages imposed in Govt’s fight against corruption)
Kaieteur News- The Government of Guyana has garnered billions in liquated damages since the establishment of a Contract Compliance Unit within the Ministry of Legal Affairs to tackle corruption and enforce penalties against defaulting contractors.
Attorney General and Minister of legal Affairs Anil Nandlall SC told viewers of his weekly programme ‘Issues in the News “that billions in liquidated damages have been imposed and several major contracts were terminated due to corruption.”
The Attorney General’s comments come even as the Auditor General’s report outlined that five contracts totalling $1.857 billion were terminated by the Government of Guyana due to substandard work, last year, the Auditor General’s 2023 Report disclosed.
According to the report, the popular Conversation Tree to Dennis Street – Exit to Sheriff Street – road widening and new connector project is among the projects set to suffer significant delays due to the contract being terminated.
The other contracts include the Ministry of Foreign Affairs – Construction of New Guyana Embassy in Brazil; the Ministry of Labour – Construction of Office and Training Centre at Corriverton; and Ministry of Human Services and Social Security –Construction of Child Care Centre at Mahaica and Repairs to the TIP Building in Region Two.
Issues surrounding the award made by National Procurement Tender and Administration Board in the sum of $830M for the widening of Corridor Conversation Tree to Dennis Street- Lot 8(B) were widely reported.
The duration of the contract was 14 months with the commencement date of September 5, 2022 and completion date of November 5, 2023. The defect liability period was one year. By December 31, 2023, amounts totalling $465M were paid to the contractor. Physical verification conducted on August 15, 2024 revealed that the works were incomplete and the contract was terminated on May 10,2024.
It was noted that the contractor failed to complete the works within the contractual duration, while the advance payment was not fully recovered.
These two situations constituted fundamental breaches of the contract. Under the General Conditions of Contract (GCC) clause, the contractor does not provide the required guarantee and the contractor delayed the completion of the works for a number of days’ correspondent to a maximum possible number of liquidated damages as indicated in the Special conditions of the cont
(Nandlall says billions in liquidated damages imposed in Govt’s fight against corruption)
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