THE stalled works on the Specialty Hospital, after the contractor was found in breach of the contract for works on the facility, is under active discussion and consideration.According to Head of the Presidential Secretariat (HPS), Dr. Roger Luncheon, discussions are ongoing at the Guyana level, but no new contractor has been identified.
“We are engaged in discussion at the Guyana level to firm up positions and we will re-approach the Indian Exim Bank and the Indian Government to put a new contractor in place,” the HPS said, yesterday at his weekly post-cabinet press briefing, which was held at the Office of the President.
Guyana had partnered with the Indian Exim Bank and to some extent the Government of India to get the project off the ground. That engagement produced a procurement exercise and from that exercise a contractor was selected. The Indian Exim Bank, as part of its conditionalities, shortlisted a number of contractors who were required to submit bids. That process produced Surendra Engineering Company Limited (SECL) as the most suitable contractor for this job
CONTRACTOR SUED
Government, however, has sued the contractor that was initially awarded the contract for works on the facility, for breach of contract.
SECL has been taken to court by the Government for over GY$100M and US$4.3M, which includes US$4.3M for the design and construction of the proposed Specialty Hospital, and other costs.
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 T&T Central Bank.
The start of the investigation came after a dossier 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 steps 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, 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 it clear that it has lost confidence in the capability of Surendra Engineering Company Limited.