Special forensic audit requested at MARAD
Public Works Minister, Bishop Juan Edghill
Public Works Minister, Bishop Juan Edghill

— no bill of quantities found for billions paid to Courtney Benn Contracting Service, subsidiary company

PUBLIC Works Minister, Bishop Juan Edghill, on Tuesday, wrote Auditor General, Deodat Sharma, requesting a special forensic audit to be conducted at the Maritime Administration Department (MARAD).

This request came on the heels of a special audit that was carried out by the Internal Auditor of the Ministry of Public Works (MOPW) which unearthed several irregularities within the department.

The audit scrutinised contract awards and spending made towards vessel repairs and acquisition of spares. It found that between 2015 and 2020, MARAD spent $3.84 billion for the procurement of spares and equipment and docking and rehabilitation of vessels.

One cause of concern highlighted by the report is that 92 per cent of the $3.84 billion was awarded to Courtney Benn Contracting Services and Brenco Shipping Company (a subsidiary of Courtney Benn).

Further, the report highlighted that while payment to other contractors had all relevant documents affixed; Courtney Benn and Brenco Shipping contracts and payments did not have relevant supporting documents attached.

Despite requests during the process of the internal audit to have Bill of Quantities (BoQs) submitted, none were provided for Courtney Benn and Brenco Shipping contracts. As such, documents not being submitted for audit scrutiny affected the verification process.

“None of Courtney Benn’s or Brenco Shipping contracts had Bill of Quantities (BOQ) affixed; hence, no breakdown was seen for the $3.551 Billion spent for works and spares,” the report noted.

Mobilisation advances were also flagged as cause for concern. While the National Tender and Procurement Administration Board (NPTAB) permits mobilisation advances up to 30 per cent, advances as high as 95 per cent were paid by MARAD.

“A contract (NPTAB: 397/2019/32 Add) valued at $400,204,530 for spares and equipment was awarded to Brenco Shipping and stated 80 per cent mobilisation advance; however, the entire amount was paid upon signing the contract. No bond was provided for scrutiny,” the executive summary of the report stated.

There was also no accountability for hundreds of millions of dollars’ worth of spares and equipment in the stores and no comprehensive physical verification of the items in the stores was ever conducted by MARAD.

The internal auditor opined that there was a deliberate attempt to frustrate the audit. He noted that BoQs forms part of the submission for National Tender & Procurement Administration Board and Cabinet’s deliberation and approval and was at a loss on how could have they conveniently gone missing.

He recommended that “there is a need for an immediate and total review of the general system of operations, policies and procedures at MARAD; with an aim of documenting and regularising same.”

“Persons found culpable through dereliction of duties or willful acts to the detriment of the agency, should be sanctioned with penalties that match the nature of the infractions,” the recommendations further stated.

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