$$Multi-billion contracts recently awarded under investigation

The Audit Office is examining scores of year-end transactions worth billions of dollars, including two which appeared to be awarded under questionable circumstances.

One of the major ones reportedly awarded on the last day of 2019 was for more than $500M for the construction of a secondary school on the Essequibo Coast.
It was halted after the Region Two Executive Officer, Denis Jaikaran, refused to sign when a contractor, Builders Hardware General Supplies and Construction, complained of irregularities.

The second contract was signed a few days ago, in the New Year, and involved an $826.7M signing with BK International Inc. for construction of the Yarrowkabra Secondary School on the Soesdyke/Linden Highway. The signing took place at the Ministry’s Brickdam office.
Over the weekend, Auditor General, Deodat Sharma, did not provide much detail on the reports that the Audit Office was investigating a number of transactions near the year-end.

“We are investigating the cutting of several checks at year-end and a number of transactions. Yes, those two projects would be among them. We can’t give details at the moment. But it is all part of the duties of the Audit Office,” the official said.
Sharma shortly before the New Year had warned accounts officers, including Permanent Secretaries and Regional Executive Officers to refrain from utilizing 2019 budgeted money this year.

He said that regulations demanded that unused money be returned to the Consolidated Fund.
The Auditor General also said it is not allowed for new contracts budgeted for last year to be signed this year.
With regards to the Region Two project, the REO had written to the Public Procurement Commission (PPC) seeking guidance, after he received a complaint from attorney-at-law Glenn Hanoman on behalf of a contractor, Builders Hardware General Supplies and Construction.
The Commission has since reportedly started an investigation.

The REO’s refusal to sign came after he was served a letter of complaint from Hanoman.
According to documents seen, Executive Director of Builders Hardware, Rakesh Samaroo, wrote the Public Procurement Commission (PPC), which regulates state contracts, complaining over the tenders for the construction of Abram Zuil Secondary School, in Region Two.
The contract for $573,226,990 was awarded on December 31, last, by NPTAB to S&K Construction and Consultancy Service and General Supplies
It is a Ministry of Communities project with 10 bids coming in. Builders Hardware was the lowest.

Builders Hardware said it submitted a tender on October 8, 2019 to the National Procurement and Tender Administration Board (NPTAB).
Samaroo claimed that based on the information published via the NPTAB website and media houses, it was clear that Builders Hardware was the lowest financial bidder.
Builders Hardware claimed that from indications, there were questionable actions from a senior ranking official of the NPTAB, who seemed insistent on S&K Construction being awarded.

“Another evaluation committee was subsequently appointed to furnish an independent report and the same results were derived.
“This information was brought to my attention by my company’s banking facility who would have informed me that the procuring entity was making inquiries to the bank on the basis of the authenticity of the line of credit accessible by my company of which authorization had to be given by myself.”
Builders Hardware also complained that it has since learnt of a possible conflict of interest situation where a senior official of S&K was a former Regional Engineer for the Essequibo Coast.

With regards to the recent project, the Ministry of Education signed an $826.7M contract with BK International Inc. for construction of the Yarrowkabra Secondary School on the Soesdyke/Linden Highway.
The signing took place last week at the Ministry’s Brickdam office.

According to the Permanent Secretary of the Ministry of Education, Alfred King, the construction of the school is aimed towards making education accessible by providing quality educational spaces to all students.
The school, which is being funded by the Government, will be built to accommodate some 600 students. The duration of the contract is one year.