– Audit finds

AN audit into the National Drainage and Irrigation Authority (NDIA) has revealed that the PPP-piloted Hope Canal project was actually completed at a cost of more than $4.1B -– some $700M more than the announced completion cost.These findings were contained in the audit report compiled by Nigel Hinds Financial Services. The report was presented to the Ministry of Finance on November 30, 2015, and is now available on the Ministry’s website.

After six deadlines and over two years of delays, the Hope Canal, which was budgeted to cost $3.6M, was finally completed last year at a purported cost of $3.4B. However, the audit by Hinds Financial Services revealed that this figure was understated, as the project was estimated to have been completed at a cost of $4.1B.

The auditors were, however, unable to compute the actual cost of the project, since they were unable to obtain all the required documentation; and given the non-availability of critical information, it is reasonable to infer that the project exceeded its original cost, from the information gathered.

“It would appear that deliberate efforts were made to understate the actual cost”, the report stated, even as it further revealed that although the project was substantively funded from the PetroCaribe Fund through the Ministry of Finance, it was discovered that the NDIA paid significant sums from its own funding for 2013 and 2014, excluding the cost of fuel supplied. This amounted to over $257M.

Additionally, the report revealed that fourteen “super long reach” excavators were purchased between 2009 and 2012 for the Hope Canal Project at a cost of $441M. It was noted, though, that the Finance Office shows that $466M were paid for thirteen excavators and one bulldozer between 2009 and 2012. It was also highlighted that no information was available for the years 2010, 2011 and 2015.

Further, it was highlighted that the dates do not correspond with the information shown for the Hope Canal project. Also, documents were reportedly not available to verify dates of acquisition and amounts paid for equipment purchased directly for Hope Canal project.

Moreover, a list prepared by Finance Ministry staffers showed that eighteen units of machinery were dedicated to the Hope Canal project over the years of construction; then an additional four units with an estimated value of $90M were added.

Two pick-ups were also purchased for $8.4M from Ainlim for the Hope Canal project, but registrations and invoices to verify ownership and cost were not available.

“Documents were not available to verify dates of acquisition and amounts paid for equipment purchased directly for Hope Canal Project”, the audit report added.

(Ravin Singh)