“Without merit” was how the Ministry of Communities yesterday described claims by Cevons Waste Management that a $221M contract for the management of the Haags Bosch landfill on the East Bank Demerara had been improperly awarded to Puran Brothers Disposal Inc.
Cevons’ objection has triggered a historic convening of the Bid Protest Committee (BPC) under the Procurement Act which will render a decision on the company’s claims.
Following a report in the last Sunday Stabroek about Cevons’ formal approach to the BPC, the Ministry of Communities yesterday said “A contention made by Cevons Waste Management that a recent decision to award the contract for the management of the Haags Bosch Landfill site to Puran Brothers Disposal Inc was unfair and biased is without merit”.
A statement from the ministry added that “The Ministry of Communities wishes to assure the public that claims by Cevons that the company was sidelined are inaccurate and reiterates that the tender process was based on the stipulated criteria as outlined in the Procurement Act”.
Cevons sought recourse to the recently-established BPC after the Ministry of Communities, the procuring agency, rejected its request for a review of the contract award on the grounds that the bid by the Cevons group was not the most responsive.
In the protest, seen by Stabroek News, Cevons lists four reasons—low price, technical competence, operation methodology and past performance—as grounds for the appeal of the ministry’s decision.
Yesterday, Junior Minister of Finance, Jaipaul Sharma signalled the need for patience as the decision of the BPC is awaited.
“I don’t want to pronounce on it because it is engaging the attention of the Bid Protest Committee but there is the first test of it and we want to see how it will work,” Sharma told Stabroek News.
He added “There is a lot of dissatisfaction out there on how things were done before and how it is being done now so this is the first test.”
The Cevon’s protest will be the first for the three-member body, which comprises Renee McDonald, the chairperson, and Archibald Clifton and Ewart Adams.
According to the Procurement Act, the BPC, after receipt of the protest, shall issue a written decision within (15) fifteen business days of the conclusion of a review, stating the reasons for the decision and the remedies granted, if any. Its decision shall be final.
It says that damages may include only compensation to recover the cost of the bid preparation. The final contract award is suspended during this period.
Cevons’ protest will likely put even more pressure on government for the promised establishment of the Public Procurement Commission (PPC) which Sharma said that government also anticipates to phase out its role in the procurement process, fulfilling the stipulations of the Procurement Act.
Cabinet’s current no-objection to contracts was implemented by the People’s Progressive Party/Civic in the absence of the PPC, to be a “watchdog and ensure the transparency process of contracts”.
Sharma said that the BPC was an important part of the procurement system given that the PPC was not yet established. He explained that coupled with the BPC, government plans for the interim will increase the amounts that regions and ministries can spend without its no-objection.
“It was in the laws and the government implemented it. This is part of the whole process of the Public Procurement Commission and when that is established that Bid Protest Committee will be active and the Procurement Commission will be actively involved in such things,” he asserted.
“We have to allow it to roll out and we must say that government took the initiative to start it (the BPC) …the law stipulates that Cabinet’s role should be phased out and by government increasing the limits is an indication that we will phase it out if the Parliament don’t agree on this commission (PPC). So we will gradually phase it out if the previous administration had done that maybe contracts going to Cabinet would be 40-50 million (dollars). In the interim if the PPC was not established Cabinet should be increasing its limit every year.”
As it pertains to Cabinet’s role, the Procurement Act states that they “shall have the right to review all procurements the value of which exceeds fifteen million Guyana dollars. The Cabinet shall conduct its review on the basis of a streamlined tender evaluation report to be adopted by the authority mentioned in section 17 (2). The Cabinet and, upon its establishment, the Public Procurement Commission, shall review annually the Cabinet’s threshold for review of procurements, with the objective of increasing that threshold over time so as to promote the goal of progressively phasing out Cabinet involvement and decentralising the procurement process.”
Further, it states “Cabinet’s involvement under this section shall cease upon the constitution of the Public Procurement Commission except in relation to those matters referred to in subsection (1) which are pending.”
‘Perception’
Asked by Stabroek News if government intends to keep its no-objection role after the PPC’s establishment, Sharma would only say, “I can tell you this, being invited to Cabinet when Minister (Minister of Finance Winston Jordan) is not there, Cabinet is very vocal when looking at contracts. These ministers are very objective, and as a result that in itself will stymie the process, because if a minister objects the project has to go back to the tender board and be re-evaluated”.
“The Public Procurement Commission is needed so this blame game (about) holding up a particular contract can be resolved. But, I am telling you this Cabinet is very serious about the way they look at things. If they look at things and it not looking well, they don’t proceed”, Sharma stated.
He said that he will not comment on the protest as it was the right of persons to protest. “It is the perception. It is always the perception that something went wrong and you can’t blame people for that. In particular, in Guyanese context, everything is wrong …you can’t blame people for that, so you give them this opportunity to make this protest.
