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Auditor General flags sub-standard works in Reg. 5 hospital project
(Kaieteur News) – The Audit Office has discovered sub-standard works during the construction of a parking lot and drains within the Mahaicony Hospital compound, Region Five.
According to the 2024 Auditor General, a contract was awarded for the construction of a parking lot and drains at Hospital’s compound in the sum of $11.718 million to the 12th lowest of 45 bidders against an engineer’s estimate of $13.923 million.
The contracts were awarded under the Regional Democratic Council of Region Five. The Report stated that according to the Appropriation Accounts, the full amount was expended by December 31, 2024.
The contract was signed and works commenced on October 8, 2024 with a completion date of October 15, 2024. However, auditors noted that the defects liability period could not be determined from the documents presented and examined.
The Auditor General further disclosed that in relation to the project, for the period ending December 31, 2024 the Regional Administration prepared and certified four payments for works completed.
On August 11, 2025, a physical verification was conducted which revealed that works were completed.
However, upon verification, poor quality concrete works were observed with extensive surface deterioration and aggregate segregation, while drain covers which were constructed and installed had already collapsed due to poor welding of the supports.
Additionally, the Auditor General stated that “The retention payment was prepared, certified and approved for completed works as per contract scope and withheld by the Regional Administration. This is a breach of Section 43 – Unexpended balance of public moneys of the FMA (Fiscal Management and Accountability) Act 2003. This practice also contravenes Section 56 – Payment for construction contracts, of the Procurement Act of 2003.”
Based on the findings from the Audit Office, the Regional Administration indicated that the contractor responsible for the works “cannot be located at this point in time.”
In its recommendation, the Audit Office mandated the Region to comply with the FMA Act of 2003.
Secondly, the Regional Administration was tasked to ensure all works completed are “carefully inspected” and that they should not accept “poor quality and sub-standard works” on their facilities and that all defects should be addressed and rectified before final acceptance of the works.
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