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THE Attorney General (AG), Mr. Anil Nandlall, on behalf of the Ministry of Agriculture, has filed an action against CARICOM General Insurance Company Inc. (CGICI), alleging breach of the Performance Bond/Guarantee. The litigation, dated April 19, is in the Commercial Division of the High Court of the Supreme Court of Judicature and the claim, for $97,292,939, is scheduled to be called on May 19, before Justice Rishi Persaud.
It surrounds a contract entered into on September 19, 2011, by Horizon Electrical Associates and General Construction Company with the Government of Guyana, through the Ministry of Agriculture, for the sum of $349,860,003, to execute the Agricultural Support Services Programme, Lot 6 (A) Supplementary Drainage Works for East Black Bush Polder, Construction of Pump-Cum Sluice.
The litigation said, pursuant to the terms, CGICI executed a performance bond/advance guarantee for Horizon Electrical and General Construction Company in favour of the Government of Guyana, which specifically stated that it, irrevocably, undertook to pay the Government any sum or sums not exceeding, in total, an amount of $104,958,001, in the event that Horizon Electrical and General Construction breaches its contracted obligations and uses the advance payment for purposes other than the costs of mobilisation in respect of the works.
It added that a total sum of $7,665.002 had been deducted from the contractor’s payment as repayment of the advance, making the now required total $97,292,939.
The plaintiff said, at the end of the duration of the contract, only seven percent of the works had been completed and the contractor had not worked for weeks due to apparent financial difficulties.
The court documentation said the Ministry of Agriculture requested, from the contractor, a breakdown of its expenditure with the advance received but got no response after more than two months.
The plaintiff said on July 25, 2012, the Permanent Secretary of the Agriculture Ministry wrote to CGICI, demanding to be paid $97,292,939, as the contractor could not provide a breakdown of expenditure with the advance and was, therefore, in breach of its obligation under the contract, because the contractor used the money for purposes other than the cost of mobilisation in respect of the works.
The ministry admitted getting a response from CGICI, indicating that the claim was submitted to a loss adjuster for examination and report.
However, it said despite several demands made by the ministry, CGICI refused and/or neglected to effect payment of the $97,292,939 and is, consequently, in breach of the performance bond/guarantee, the plaintiff ministry complained.
It surrounds a contract entered into on September 19, 2011, by Horizon Electrical Associates and General Construction Company with the Government of Guyana, through the Ministry of Agriculture, for the sum of $349,860,003, to execute the Agricultural Support Services Programme, Lot 6 (A) Supplementary Drainage Works for East Black Bush Polder, Construction of Pump-Cum Sluice.
The litigation said, pursuant to the terms, CGICI executed a performance bond/advance guarantee for Horizon Electrical and General Construction Company in favour of the Government of Guyana, which specifically stated that it, irrevocably, undertook to pay the Government any sum or sums not exceeding, in total, an amount of $104,958,001, in the event that Horizon Electrical and General Construction breaches its contracted obligations and uses the advance payment for purposes other than the costs of mobilisation in respect of the works.
It added that a total sum of $7,665.002 had been deducted from the contractor’s payment as repayment of the advance, making the now required total $97,292,939.
The plaintiff said, at the end of the duration of the contract, only seven percent of the works had been completed and the contractor had not worked for weeks due to apparent financial difficulties.
The court documentation said the Ministry of Agriculture requested, from the contractor, a breakdown of its expenditure with the advance received but got no response after more than two months.
The plaintiff said on July 25, 2012, the Permanent Secretary of the Agriculture Ministry wrote to CGICI, demanding to be paid $97,292,939, as the contractor could not provide a breakdown of expenditure with the advance and was, therefore, in breach of its obligation under the contract, because the contractor used the money for purposes other than the cost of mobilisation in respect of the works.
The ministry admitted getting a response from CGICI, indicating that the claim was submitted to a loss adjuster for examination and report.
However, it said despite several demands made by the ministry, CGICI refused and/or neglected to effect payment of the $97,292,939 and is, consequently, in breach of the performance bond/guarantee, the plaintiff ministry complained.
