Public Works Ministry addresses allegations, highlights fiscal irregularities
The Ministry of Public Works in Guyana has issued a stern warning to contractors and vendors providing services to the government, cautioning against any attempts to extort or manipulate the government into paying for incomplete projects.
This statement comes in response to recent allegations made by Contractor Sattrohan Maraj of S Maraj Contracting Services regarding stalled work on the Leguan Stelling due to outstanding payments.
In an article published on Monday, October 9, 2023, in Stabroek News, Contractor Sattrohan Maraj claimed that the Leguan Stelling project had come to a halt due to unpaid funds owed by the government.
However, the Ministry categorically refutes this claim, asserting that the government is committed to addressing the project’s issues responsibly.
Under the direction of the then Minister of Public Infrastructure, David Patterson, a contract totalling $413,259,260.00 was signed to complete the six months project, with the contractor receiving up to $199,435,000 in payments which amounted to about 50 per cent of the contract sum at the time, and yet the project was still incomplete a year later.
Underlining the disregard for procurement practices and a breach of the Fiscal Management Accountability Act during the previous government’s tenure, the project remains a significant challenge for the current administration. Only 2 per cent of the work is said to be remaining on the project, with the contractor accused of trying to extort additional funds.
The Ministry points out that the contractor has consistently sought opportunities to claim additional payments for activities typically covered in the original contract.
Notably, these claims have included clearing the riverbed of obstacles and cutting prestressed concrete piles to the design cutoff level after driving.
The Transport and Harbours Department (T&HD), responsible for stellings, has attempted to resolve these claims through negotiations and has successfully addressed ten variation orders under Addendum No.1, ratified in December 2022.
Contrary to the contractor’s allegations, the Ministry maintains that it has been willing to resolve legitimate claims and has worked toward a harmonious project completion. The contractor had committed to completing the project expeditiously by the revised contract sum of $607,259,260.00, but has failed to meet this commitment.
Additionally, the contractor’s delays in executing critical works, specifically the linkspan bridge installation, have been detrimental to the project’s progress. While the T&HD has provided the necessary cash flow for this aspect of the project, it is currently three months behind the stipulated completion date in Addendum No.1 (i.e., June 5, 2023).
The Transport and Harbours Department has issued directives to the contractor regarding the linkspan bridge installation, and outstanding claims for payment will be resolved in accordance with the provisions of the Addendum. Should the contractor fail to fulfill their project obligations as directed, the Ministry will apply recourse and compensatory provisions for nonperformance in accordance with the Contract and national procurement framework.
This development underscores the government’s commitment to fiscal responsibility and project completion while ensuring transparency and accountability in its dealings with contractors and vendors.