Surendra Engineering Company alleged fraud…
Mr. Anil Nandlall
Mr. Anil Nandlall

Suspected fraudulent documents, TT Central Bank correspondence with the police – AGM

THE Government is continuing its move towards legal action against Surendra Engineering Company Limited (SECL), following the termination of the company’s contract with the State for the design and construction of the Specialty Hospital.

The Central Bank of Trinidad and Tobago
The Central Bank of Trinidad and Tobago

The Government of Guyana last Tuesday announced its intention to move against SECL’s after citing what it termed “deep concerns” over the execution of the contract, both as it relates to technical shortcomings and suspicion of fraud.
Attorney-General (AG) and Minister of Legal Affairs, Mr. Anil Nandlall told the Guyana Chronicle, yesterday, that the suspected fraudulent documents, as well as correspondence from the Central Bank of Trinidad and Tobago (TT), where the documents are said to have originated, have been handed over to the police.
He said: “The documents which have been submitted and which are suspected to be fraudulent have been transmitted to the Crime Chief by me, with a request on the part of the Government of Guyana to launch a criminal investigation.
“Included in the bundle of documents is a letter from the Central Bank of Trinidad and Tobago explaining that the person whose name appears on the document that was presented and purported to come from the Central Bank, is not working at the bank and the position which that person is supposed to hold, as per the document, is a position that does not exist at the bank. The bank maintains that it did not issue that document.”
The AG added that other letters from the Central Bank of Trinidad and Tobago explaining that the company, which is purported to have provided SECL with and advance payment and performance bond guarantees, is not registered in the country and is unknown to the Bank.
“The Central Bank has explained that the company, Worldwide Banker Limiter, which purported to have provided Surendra Engineering Company Limited with an advance payment guarantee and a performance bond, is not registered in Trinidad and is unknown to the Bank,” he said.
According to Nandlall, the investigations by the Central Bank of Trinidad and Tobago are also proceeding.
“I am aware that the Central Bank of Trinidad and Tobago has also commenced an investigation. I have no doubt that during the course of the investigation, the principals of Surendra Engineering Company Limited will be contacted and statements taken from them,” he said.
The Attorney-General acknowledged too that the Managing Director Surendra Engineering Company Limited, Brijen Parikh, has refuted the allegations of fraud, since the termination of his company’s contract.
“Hopefully, the investigation proceeds with dispatch (speed),” Nandlall concluded.
The other courses of possible action against the company, the AG highlighted, could include pursuing civil litigation against the company for compensation, damages and breach of contract.
The Government of Guyana, since June this year, had been engaging SECL on a number of issues regarding allegations of fraud and financial irregularities.
Initially, the Government’s concerns related to delayed milestones and inadequate accountability by SECL for public funds the company had received on signing the contract with the Ministry of Health.
Subsequently, the Government of Guyana discovered that SECL’s representative in Guyana had submitted a fraudulent document purporting to emanate from the Central Bank of Trinidad and Tobago. The fraudulent Act by SECL has since been confirmed by the Central Bank of Trinidad and Tobago.
The alleged fraudulent documents were submitted after a local company, CARICOM Insurance, withdrew its advance payment and performance bond guarantees in March this year.
Prior to the March 2014 expiration of the guarantee by CARICOM Insurance, a total of US$4.2M was paid to the contractor, US$3.36M of which was a mobilisation advance – in total 23.5 per cent of the entire contract sum.
Reports indicated that to date the structural designs for the project have been completed, while the architectural designs are currently being reviewed. Physical progress has been seen on the essential site preparation which is some 75 per cent completed. On the building foundations 361 piles have been supplied and 235 piles have been driven.
Additionally, a 12-month contract was been inked with consultant, VIKAB Engineering Consultants Limited, which was the company working with a local evaluation team that uncovered the irregularities and contract violations that forced the termination of the SECL engagement on the Specialty Hospital.
SECL’s contract for the design and construction of the Specialty Hospital began in September 2012, having bid US$18.1M.

(By Vanessa Narine)

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