By Derwayne Wills

AJAY Jha, the local representative of India-based contracting firm, Fedders Lloyd, has cut ties with that company after it was flagged by the World Bank for violating the financial institute’s procurement guidelines against fraud and corruption.
According to Jha in a statement, “I was kept in dark by the management of Fedders Lloyd about this World Bank issue related to African country.”

Jha’s decision to cut ties with the company comes even as he said the company will be appealing the World Bank decision.

“Fedders Lloyd explained to me that this issue in Nigeria was dragging since 2010, and they too were shocked when it (Fedders Lloyd) was notified on 6th April, 2016.”

The World Bank decision led the Government of India to withdraw its support from Fedders Lloyd after that company was awarded the contract by the David Granger administration to complete the Specialty Hospital at Turkeyen, Greater Georgetown.

It was only recently that Jha was notified by the Government of India that the company he represented in Guyana had been implicated by the World Bank for violating the bank’s guidelines.

Jha expressed concern that the company did not notify him of the World Bank’s decision.

“I immediately informed all concerned and left for India thereafter to terminate my contract with Fedders Lloyd on this group,” Jha wrote in his statement.
“I love Guyana more than my own country and this feel sorry for this unfortunate development.”

Cabinet Secretary Joseph Harmon told reporters at a recent press briefing that while the David Granger Administration would proceed with the contract for construction of the controversial hospital, Government does not have the option to award that contract to companies outside of India.

“The contract which is there for the Specialty Hospital requires an Indian company to build that Specialty Hospital. And therefore the bidding and everything has to be done by a certain standard established by the Indians,” Harmon said.

Harmon confirmed that the Government of India had opted out of the engagement with Fedders Lloyd because of the World Bank ‘fraud and corruption’ sanction against the company.

Fedders Lloyd had been awarded the contract for construction of the hospital by the David Granger Administration after the previous Donald Ramotar Administration had parted ways with Surrendra Engineering Company, the first Indian firm to be awarded the contract for building the hospital.

A lawsuit by the Donald Ramotar Administration had been won in 2015, but there was an outstanding sum of money to be collected when that administration lost office in the May 2015 Regional and General Elections.

Figures floating in media reports suggest some $900M were still to be collected by the Guyana Government.

Asked about the money awarded in the lawsuit, Harmon said Cabinet has asked Attorney General Basil Williams to “proceed with the legal process to ensure that those sums of money are retrieved”.