Twenty-one small contracts in Region Two, totalling more than $115 million, were awarded in 2017 without public tender or the prequalification of the contractors, which the Regional Administration blamed on its “misinterpretation” of the Procurement Act.
This is one of the many findings following an examination of the accounts of the ten administrative regions contained in the 2017 Auditor General’s report, which was recently presented to the National Assembly.
The contracts, each valued between $1.7 million and $13.4 million, pertain mainly to infrastructure works, work on schools and the construction of several buildings.
Under the heading, ‘general observations on contracts,’ Auditor General Deodat Sharma noted that it was discovered that contracts were all awarded using the three quote method of procurement. “There were no public advertisement[s] inviting contractors to bid for the works despite the fact that they were all valued significantly above $1.500M. Neither were any of these contractors pre-qualified. These contracts should have been publicly advertised and subject to open tendering,” the report said.
However, in responding to Sharma’s observation, the region explained that the use of the three quote system was “as a result of a misinterpretation of the Procurement Act.”
Sharma recommended that the Regional Administration discontinue the three quote method of procurement for awarding contracts valued above the $1.5 million limit “immediately” and also adhere to the Procurement Act.
The contracts flagged were awarded during the course of the year. The exact dates they were signed or the names of the contractors were not recorded in the report.
On the list is a $3.3 million contract for general repairs to Timber Revetment at Huku Quarter, Johanna Cecilia; a $2.9 million contract for the extension of Good Hope Primary School, at Good Hope; a $3.9 million contract for the extension of Suddie Primary School Annex, at Onderneeming; a $2.7 million contract for the construction of an incinerator at the Suddie Public Hospital; a $1.8 million contract for repairs of Reinforced Concrete Water Trestle at The Living Quarters, at the Suddie Public Hospital; an $8.2 million contract for the extension of Fisher Primary School, at Golden Fleece; and a $3 million contract for the rehabilitation of a Box Culvert at Perseverance.
Also included on the list is a contract valued $1.7 million for the rehabilitation of Unu Creek Sluice Door, at Abram Zuil; a $1.9 million contract for the construction of perimetre concrete drain at Affiance Nursery School; a $9.5 million contract for the construction of Drain Network and Upgrading of Streets at Cotton Field Compound; a $3.2 million contract and a $5.5 million contract for general repairs to Timber Revetment at the RDC Living Quarters at Cotton Field; a $1.9 million contract for landfilling at Unity Park; and a $7.6 million contract for general repairs to O&M Building at Anna Regina.
Also awarded was a contract worth $3.6 million for the rehabilitation of D5 Dam to Dredge Creek, Better Hope; a $4.2 million contract for general repairs to the bridge at Dredge Creek Primary School, at Dredge Creek, Pomeroon River; a $4.2 million contract for the extension of the Sanitary Block at the Charity Primary School; a $12.9 million contract for the rehabilitation of Oscar Joseph District Hospital, Phase 2; a $3.1 million contract for the upgrading of Sideline Street, at Dartmouth; a $13.3 million contract for the construction of a recreational centre at Macaseema, Upper Pomeroon River; and an $8.7 million contract for the construction of a Duplex Living Quarter at Wakapao Health Centre.
