SECL formally informed of contract termination

CONFIRMATION of termination of the contract for design and construction of the proposed Specialty Hospital has been forwarded to the embattled contractor, Surendra Engineering Company Limited (SECL).The Guyana Chronicle understands that the formal letter of termination was sent to the principals of Surendra Engineering Company Limited (SECL) by the Permanent Secretary of the Ministry of Health, Mr. Mr. Leslie Cadogan.
In the meantime, the investigations into the circumstances surrounding the contract’s termination are continuing, according to Crime Chief, Mr. Leslie James.
SECL’s contract for the design and construction of the proposed Specialty Hospital began in September 2012, after a bid of US$18.1M. VIKAB Engineering Consultants Limited, held a 12-month contract as a consultant on the project.
VIKAB Engineering, according to Health Minister, Dr. Bheri Ramsaran, was working with a local evaluation team when irregularities and contract violations were uncovered.
These alleged breaches forced the termination of the SECL engagement on the Specialty Hospital. SECL has had its contract terminated by the Government of Guyana earlier this month.
The administration announced its intention to move against SECL after citing what it termed “deep concerns” over the execution of the contract, both as it relates to technical shortcomings and suspicion of fraud.
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 were 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 start of the investigation came after a dossier of documents was submitted to the police by Attorney-General and Minister of Legal Affairs, Mr. Anil Nandlall, with a letter requesting such a procedure.
When the contract was terminated, Nandlall noted that the course of action to be taken will include: termination of the contract and engaging the police; and requesting an investigation into the alleged fraud, both of which actions have already been taken.
He had stated too that there was the likelihood of pursuing civil litigation against the company for compensation, damages and breach of contract.
Reports indicate 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.
The current administration has made clear that it has lost confidence in the capability of Surendra Engineering Company Limited.

(Vanessa Narine)

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