GOVERNMENT is suing Surendra Engineering Company Limited (SECL) for over US$104.3M, which includes US$4.3M lost according to its contract with the company for the design and construction of the proposed Specialty Hospital, and other costs.

A Writ of Summons and Statement of Claim were filed by Attorney-General (AG) and Minister of Legal Affairs Anil Nandlall on Wednesday.
The matter is scheduled for a hearing in the Commercial Division of the High Court on December 3, 2014.
The embattled contractor had its contract terminated in September. In the latter part of last month, confirmation of the termination of the contract for design and construction of the proposed Specialty Hospital was forwarded to the principals of SECL. Alleged breaches forced the termination of the SECL engagement on the Specialty Hospital. SECL has had its contract terminated by the Government of Guyana in early September.
If SECL’s representatives fail to appear in court, judgment may be made in favour of the Government, according to the summons.
GOV’T’S CLAIMS

The Statement of Claims stated that the breach of contract includes the contractor’s:
* Failure to design and complete the architectural drawings and building plans, for which payments were made;
* Failure to complete the works contracted for, that is, mobilisation, site establishment, supply civil engineering materials, and other works;
* Failure to properly account for the advance payment of US$4.3M, in that they failed inter alia to submit payment receipts; and
* Failure to renew/provide the Advance Payment Guarantee and the Performance Bond for the period March 12, 2014 to present, in accordance with Clause 13 of the General Conditions of Contract.
“In the circumstance, the contractor is guilty of breach of the terms, conditions and warranties of the Contract, by failure to provide services for which they received payment and to renew/provide the Advance Payment Guarantee and the Performance Bond,” the Statement of Claims said.
Additionally, the Government charges that SECL engaged in fraudulent practices that caused the Government to suffer losses.
The acts of fraud cited, include that:
SECL attempted to obtain an Advance Payment Guarantee and Performance Bond with a company not registered as an insurance company under the Insurance Act, Cap 84:01 of Trinidad and Tobago, named ‘Worldwide Bankers Limited’ purportedly located in Trinidad and Tobago;
SECL submitted a document dated January 13, 2012 purportedly emanating from the Central Bank of Trinidad and Tobago;
SECL submitted fabricated, unsigned and sometimes inflated invoices with no evidence of actual payments made or to support the expenditure claimed.
According to the Statement of Claims, Government lost US$3.6M, which represented a 20 per cent advance; US$505,440 for additional design services; and U$144,000, which was a sum for site mobilization – a total of $4.3M.
CONTRACT AWARDED

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.
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.

(By Vanessa Narine)