The Hand-in-Hand insurance company has stated that information regarding its clients is strictly confidential and as such will not be disclosed unless required by law or a legal process.
The company, in response to reports in the media with regard to the status of performance bonds the former contractor of the Amaila Falls Road Project, Fip Motilall had taken out, stated that it prides itself in being among the biggest underwriters of performance bonds in Guyana for government and other contracts.
The government recently terminated the US$15.4 million contract with Synergy Holdings Inc, the company operated by Motilall, for under-performance since the project was only 40% completed even though the contractor was given an extension to the deadline specified to complete the 165 km road project in the Mazaruni area.
Motilall had secured a performance bond (a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor) from Hand-in-Hand for the project and government has now laid claim to that bond. Reports are that Motilall had failed to secure another required performance bond for the project and that was a factor in him losing the contract.
Stabroek News has made several attempts to obtain a comment from Motilall to clarify the issue as well as his next course of action following the termination of the contract. Calls to his phone went unanswered while persons at the company’s offices said he was unavailable.
Hand-in-Hand said it would expect that among the numerous performance bonds it has issued, that there may be claims as this was the nature of the business.
As a matter of course, Hand-in-Hand stated, loss reserves are constantly maintained for risk exposure.
This, among other things, ensures that Hand-in-Hand at all times has financial resources to meet the commitments it undertakes with respect to any insurance policy it issues, including performance bonds.
It stated too that if a claim is made against a performance bond, it goes through its claims verification and investigation process and that process is performed in respect of each claim regardless of its size.
Large claims are submitted to the company’s board for consideration and the company noted that it was happy to settle any claim it is determined liable to pay as this is part and parcel of meeting the needs of its customers.
“With respect to bonds, this means that principals and contractors can go about their contracts with the knowledge that their risks are protected,” the company said.
Works Minister Robeson Benn had said when the announcement was made of the termination of Synergy’s contract that government was looking at alternatives to complete the project.
Motilall had stated that below-par weather conditions as well as modifications to the specifications of the design for the roadway were prime reasons for delays encountered in completing the project.
