audit underway to identify non-compliance
THE government will be imposing strict actions against errant contractors who have been causing substantial disruptions in public works projects, impeding the government’s efforts to develop national infrastructure.
Attorney General and Minister of Legal Affairs Anil Nandlall made this announcement during his programme ‘Issues in the News’ on Tuesday, highlighting the People’s Progressive Party Civic (PPP/C) government’s dedication to ensuring contractors adhere to their contractual obligations and deliver the expected results.
He explained that at a recent Cabinet meeting; the government made a resolute decision to take robust measures against contractors failing to fulfil their obligations.
“These are contractors who are issued with contracts from the government and, for whatever reason, have been breaching those contracts causing tremendous delays in the execution and completion of public works across the country, stalling the government’s infrastructural development drive,” Nandlall said.
In order to tackle this problem, he stated that the Ministry of Finance has been given instructions to expeditiously carry out an audit to identify contractors who are not in compliance. Once identified, this information will be transferred to the Attorney General, who has been explicitly instructed to inform these contractors, enforce liquidated damages as permitted by contract terms, and commence legal proceedings for contract violation.
“We cannot continue to have contractors not discharging the contractual obligations in accordance with the contractual specifications. Government will not tolerate substandard work and breach of contracts from contractors who are paid billions of dollars to discharge their contractual obligations.”
He continued: “Contractors who are performing well and who are discharging their contractual obligations have no reason to worry. The delinquent ones, however, that delinquency will attract certain legal consequences and the government intends to move strongly and swiftly in that direction.”
Recently, Government terminated the Mineral Agreement and Mining Licence issued to Troy Resources Guyana Inc. (TRGI) and its affiliates, Troy Resources Limited and Pharsalus Gold Inc after it failed to address several critical issues, including unpaid royalties, rental fees, non-compliance with the work programme and environmental management concerns.
The Karouni Mineral Agreement, initially signed on October 16, 2014, was intended to facilitate the development and operation of a mining project at the Karouni Property. TRGI commenced operations in November 2015 but encountered operational challenges that led to an extended period of “care and maintenance,” beginning in early 2021.
Despite commitments to resume operations, TRGI failed to do so, even proposing the liquidation of its assets to the government. This proposal was rejected, primarily due to the delay in addressing outstanding financial obligations.
One of the significant issues leading to the contract’s termination is TRGI’s unpaid royalties totalling over $2.6 billion, which the government is actively seeking to recover through legal means.
In addition, despite disapproval from the Guyana Gold Board (GGB) and suspension of TRGI’s exports owing to unpaid royalties, the Ministry of Finance, during the former APNU+AFC administration in 2019, allowed TRGI to resume exports, which further exacerbated the outstanding debt.
Since taking office in 2020, the administration has nullified several multi-million-dollar contracts owing to multiple breaches by contractors. The government is pursuing civil litigation against reckless drivers who cause damage to public property, seeking substantial financial compensation. Troy Humphrey, who inflicted damages upon the newly constructed Eccles/Haags Bosch roundabout, is the inaugural civilian to confront legal action initiated by the state.
