Another controversy has erupted in relation to the design and construction of the Specialty Hospital at Turkeyen, East Coast Demerara. This time, the government announced its intention to terminate the contract with Surendra Engineering Corporation Ltd on the grounds that the contractor had submitted a fraudulent document purported to emanate from the Central Bank of Trinidad. The government has also asked the police to investigate the matter and is pursuing legal action to recover some US$4.3 million it paid to the contractor.
Surendra Engineering has, however, rejected the allegations and accused the government of seeking to back out of its commitments and of being responsible for the stoppage of work. The contractor also stated that it was entitled to recover from the government amounts expended on the project that it was committed to see through to completion.
Events leading up to the
award of the contract
In January 2012, the Ministry of Health invited tenders for the design and construction of the Specialty Hospital. In violation of the Procurement Act, the ministry restricted the bidding process to contractors from India. Section 5 prohibits a procuring entity from imposing any criterion, requirement or procedure with respect to the qualifications of suppliers or contractors that discriminates against or among suppliers or contractors or against categories thereof based on nationality. This is reinforced by Section 7 which provides for suppliers or contractors to participate in