THE Guyana Government “feels strongly” that a good case has been made out against Surendra Engineering Company Limited (SECL), and that expended public funds as well as damages can be recovered for the delays and distress caused by the actions of the contractor.

Head of the Presidential Secretariat Dr Roger Luncheon Wednesday expressed such optimism, though he noted that the preliminary actions thus far have been “exhaustively slow.”
The status of the Specialty Hospital hinges on the termination of the contract to design, build and supply the hospital by SECL, subsequent to which three steps were taken by Central Government.
According to Luncheon, one of these steps saw Government informing the Indian Exim Bank, the provider of the concessionary loan financing, and the Indian Government of its absolute resolve to have the hospital built at the site in Turkeyen, East Coast Demerara.
“It is in that regard that the Government has reached out to the Government of India with certain proposals with regard to the future. We are awaiting the consideration of officialdom in India to take our next step in our commitment to have the specialty hospital built in Guyana,” Luncheon expressed.
Meanwhile, Government has sued SECL for US$104.3M, which includes US$4.3M lost according to its contract with the company for the design and construction of the proposed hospital.
A Writ of Summons and Statement of Claims were filed by Attorney General and Minister of Legal Affairs Anil Nandlall. 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 charged that SECL was 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 mobilisation – a total of $4.3M.
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.