THE purchase of an industrial washer and an industrial dryer for the Guyana Prison Service came under scrutiny on Monday during a meeting of the Public Accounts Committee (PAC) in the Chambers of Parliament Buildings.

It was discovered in the report of the Auditor General for 2015 that the washer and dryer valued at $7.542M were paid for in full but never received by the Ministry of Public Security since 2014. The Ministry in its explanation said it is still awaiting the shipping of the items and it was recommended that the Ministry continues to pursue the matter and ensure that the items procured are delivered. The Audit Office also recommended that systems be put in place to ensure that there is no recurrence of the situation.

During Monday’s meeting, Permanent Secretary of the Ministry of Public Security, Daneilla Mc Calmon, was called upon to explain why the washer and dryer have not yet been delivered even after monies would have been paid over in full to Tactical and Commercial Incorporated, an American company.

Mc Calmon said it remains a challenge for the Ministry to get into contact with the supplier. She explained that the entity does not have a local office and calls to the supplier all go unanswered.

“He’s not taking our calls, he’s not responding to our emails,” she told the PAC.

As such PAC Chair, Irfaan Ali recommended that the Ministry of Public Security writes the ambassador of the US Embassy here seeking assistance in the matter. In the meantime, PAC Member, Nigel Dharamlall, sited the situation as a “massive breakdown in the financial management” of the Ministry and described the situation as terrible.

“How was the procurement done?” questioned Nandlall who also asked what percentage of the amount was awarded to the company.

“What was their contract value?” he probed as Mc Calmon replied, “approximately $10M”. The Permanent Secretary disclosed that the money was paid to the company in full through the bank; a statement which did not find favour with PAC members.

The PS explained that the National Procurement and Tender Administration Board (NPTAB) was part of the process and noted that the items were sole sourced. She was asked to produce to the PAC the letter written requesting permission to sole source; that letter along with other documentation related to the procurement has to be submitted to the PAC by Friday.

The PS also disclosed that no bond was kept as security and the money was released by the former PS of the Ministry.

PAC Member, Charandass Persaud suggested that “If the company is real, fly somebody there…say I want my washer and dryer now, put it on a boat now.” But the matter did not rest lightly with the PAC Chair, who noted that had the situation been reversed and it was a Guyanese company failing to deliver, that company would have been made to deliver.

“If this was a Guyanese company owing the American company we would have had to find that company; write the Ambassador,” declared Ali.

PAC Member, Jermaine Figueira, questioned what systems are in place to prevent the recurrence of such a situation in the future, whether local or foreign businesses.

“Since I would have assumed the position, no company will be fully paid unless the items are delivered. We also receive a bond for any amount we pay out,” assured Mc Calmon
Meanwhile, Dharamlall asked Mc Calmon to state the effect the non-delivery of the items have on the Georgetown Prison system. The PS explained that there is a washer and a dryer at the Prison facility but the new equipment was “just to ease the burden”.

“They still have the burden but they use manual labour,” said the PS.

The PAC requested that all measures be exhausted so that the washer and dryer could be delivered, or have the money paid returned.

“All I want is the washer and dryer … or get the money back,” said PAC Member Edghill.