Courtney Benn paid more than $600M for works not done
An embattled Courtney Benn
An embattled Courtney Benn

By Rehana Ahamad

IT would appear as though the previous government had been sole-sourcing Courtney Benn Contracting Services Limited for a number of infrastructural projects, the majority of which have been paid for in their entirety but remain outstanding.
According to Deodat Indar, Minister within the Ministry of Public Works, the company was paid in excess of $610 million to execute repairs on a few vessels, but to date, no works have been done on any. “The investigations are still ongoing, so these figures are likely to climb,” Indar told the Guyana Chronicle.
He explained that when the People’s Progressive Party Civic (PPP/C) assumed office in August 2020, the ministry launched a wide and extensive investigation into a number of outstanding infrastructural projects, when it stumbled upon a series of questionable undertakings involving just one contractor – Courtney Benn Contracting Services Limited.

INOPERABLE AND OVERRUN BY BUSHES

So far, incomplete works on the three vessels remain the most significant of all the flagged projects. According to the minister, the contractor was paid in full to carry out rehabilitative works on the three vessels – the Seamang, the ML Allan Young and the MV Baramani; however, the vessels remain inoperable and overrun by bushes.
Minister Indar said the contracts were issued by Guyana Maritime Administration (MARAD), an agency that fell under the then Ministry of Public Infrastructure which was headed by now embattled former coalition minister David Patterson. “These contracts date back to 2016,” Indar said.
He also lamented the fact that the contracts for repairs to the vessels were paid upfront and in full, as opposed to being paid in tranches – first an advance/mobilisation fee and then the final payment when all the works have been properly executed. “But, this contractor was paid in full and nothing was done,” Indar said.
The minister also complained of the lack of a paper trail, which has made it difficult for the ministry to keep tabs on the contractor. Because of inefficient book-keeping, Indar said it was difficult to immediately ascertain whether approval for sole-sourcing was sought and approved by the National Procurement and Tender Administration Board (NPTAB). “We are hoping that this investigation could tell us all of that,” Indar posited.
The minister could not confirm whether it was former Permanent Secretary Balraj Balram who signed off on the sole-sourcing. During Wednesday’s hearing of the Public Accounts Committee (PAC), Balram was heavily criticised for being unable to answer for several infractions, the most glaring of them being the sole-sourcing a $72.2 million contract to purchase three motion scales from a company in Jamaica.

FLAGRANT DISCREPANCIES

The contract, signed by Balram in 2016, contained no dates, bore no witness signatures, nor displayed the verification number from the National Procurement and Tender Administration Board (NPTAB). Even more blatant, was the fact that the contract was signed even before Cabinet had approved the purchase. It is still unclear whether the scales were ever delivered to Guyana.
Meanwhile, the past few days has seen Courtney Benn Contracting Services, headed by local veteran engineer Courtney Benn, facing much heat for its failure to deliver on a number of national projects. The company has been sued and is currently facing possible disbarment from state projects.
Wednesday’s (PAC) meeting also saw the company being flagged for owing the state some $100 million. Guyana’s 2016 Audit Report highlighted the startling fact that the company was initially overpaid a whopping $120.6 million for preparatory works required for the upgrade of the East Coast Demerara highway from La Bonne Intention to Beterverwagting. Members of the PAC had also raised questions with regard to the company receiving an advance of $264 million, which accounts for 76 per cent of the overall cost of the road project.
Moments after the PAC meeting, the Chambers of the Attorney General filed a lawsuit against the company and its insurance provider, Caricom General Insurance Company, for breaching the conditions outlined in the contract to rebuild St. Rose’s High School, located on Church Street. These issues have resulted in the Ministry of Public Works examining the possibility of disbarring the company from receiving state contracts altogether.
Nonetheless, minister Indar said that the ongoing investigation does not have a specific timeline, but is expected to be as comprehensive as possible, so as to ensure that taxpayers’ monies are properly expended and accounted for.

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