IN an explosive letter to the Editor, controversial contractor Brian Tiwarie has taken former President Donald Ramotar to task on allegations that his firm, BK International, was “awarded” some $800 million in steel from the proposed US$18 million Specialty Hospital, now in limbo at Turkeyen, Greater Georgetown.

Ramotar was quoted in the Stabroek News’ June 30 edition as saying, “We took possession of eight containers of steel that Surendra, at the time we took them to court, had on the wharf; and that was worth nearly double the $400M they owed us.”

Surendra Engineering was first awarded the contract for the now halted specialty hospital project after the company was endorsed by the Government of India. The then Donald Ramotar Administration, just before the May 2015 elections which saw Ramotar’s People’s Progressive Party/Civic (PPP/C) Government booted from power, had challenged the India-based Surendra Engineering on allegations of fraud and financial irregularities.
The matter ended up in court, where the Guyana Government, in January of last year, was awarded some $800M in damages.

Now that the David Granger administration has assumed the reins of power from its predecessor, it is up to this administration to collect on Surendra’s outstanding court-ordered damages. But now former President Ramotar is calling on the David Granger Administration to say why the containers of steel rods were “turned over” to BK. Ramotar’s words incurred the wrath of the businessman, who was awarded a number of contracts under the Bharrat Jagdeo and Donald Ramotar administrations, during the PPP’s 23 years in office.

“Former President Ramotar in claiming that eight containers valued $800M, demonstrates clearly his gross incompetence in dealing with this issue while he was President,” said Tiwarie, as he called for a “performance audit into the Donald Ramotar presidency.”

Tiwarie said the steel rods in the containers did not amount to $800M as Ramotar alleged, but instead some $32M (US$153,000).

“All (that were contained in) the containers were mere steel rods; and it was clear that, contrary to what was told to the Government, none of the expensive steel frames was in the container,” said Tiwari.

The BK owner went on to defend his company’s right to the containers in question, saying his company took Surendra to court, where a judgment of $400 million was awarded in his favour. He said Surendra conceded to owing that money to BK as a result of work which Tiwarie’s company was sub-contracted to do at the Specialty Hospital site.

But the former Donald Ramotar administration then took possession of the containers, causing Tiwarie to hold his hand.

“Instead… the containers [by court order] were taken to an auction and were bought by an individual, not BK,” Tiwarie said.

Tiwarie criticised the Ramotar Administration for allowing Surendra’s Managing Director to leave the jurisdiction against a Court Order which barred the official from leaving. The BK boss is now calling for a “thorough investigation to be done into the issues relating to the award, periodic execution, failure and subsequent events following the suspension of Surendra Engineering from the Specialty Hospital Contract.”

Meanwhile, Minister of State, Joseph Harmon, told reporters on Friday that the matter relating to the alleged “award” of the $800M will be investigated, since the former President has raised issues which he regards as security matters.

Harmon said all reports point to the direction of the Health Ministry’s former Permanent Secretary, Leslie Cadogan, who was fired last September for gross negligence and misconduct in office.

The contract for the specialty hospital will now be re-tendered after Fedders Lloyd, which replaced Surendra Engineering, was blocked by the World Bank on allegations of fraud.

Fedders Lloyd, another India-based firm, cannot pursue World Bank-financed contracts until 2020.

Minister Harmon said the contract for the Specialty Hospital is now being reviewed by Guyana’s Foreign and Health ministers with the hope of approaching the Government of India to get some of the money allocated for the hospital to be used for developing three primary healthcare facilities in Guyana.