The Auditor General has recommended a police investigation into the single-sourcing of 71 legal contracts by the APNU+AFC government.
“The Ministry of Legal Affairs Contract Registers for the period May 2015 to August 2020 shows 71 contracts were awarded to 26 Attorneys-at-Law/Law Firms/Agency totalling $170.828 million,” the report of a special audit of the Attorney General’s Retainer Agreements said.
Following the examination of these contract the Audit concluded that there was no evidence that the Contracts were publicly advertised, which is in breach of Sections 25. (1) and 10 (1) of the Procurement Act of 2003. Direct Contracting or the Single-Source method was used to award these contracts
The referenced sections prescribes that “Subject to subsection (2), public tendering is mandatory. For such tendering an invitation to tender or to prequalify, as applicable, is mandatory” and “the procuring entity shall maintain a record of the procurement proceedings including the means used to solicit suppliers or contractors and a record of any such advertisements”.
The Audit also noted that the Ministry of Legal Affairs failed to follow the Guide to the Public Procurement Procedures which states that where contracts are to be awarded regularly, or are to be renewed within a specified period of time, the contract value is established on the basis of the actual aggregate cost of similar contracts or services awarded over the previous twelve months or financial year, adjusted where possible for anticipated changes in the value or quantity.
It was highlighted that these firms were retained to litigate cases despite the existence of a fully funded state solicitor’s office.
“The State Solicitor is responsible for filing all pleadings in action instituted by the State and against the State. According to the MOLA Current Appropriation Accounts for the years 2015 to August 2020, amounts totalling $112.200M was expended on employment cost under Programme 4 – State Solicitor, whilst amounts totalling $166.474M were expended as Retainers Agreement for 22 Attorneys-at-Law/Law Firms,” it shows.
Specific attention was drawn to 2019 when $99.143M were paid to 10 Attorneys-at-Law/Law Firms the majority of which, $64.492 million related to the litigation of the no-confidence motion against the APNU+AFC government.
In the case of Belizean attorney Courtney Coye, five agreement were signed totaling $34 million. Several of these agreements appear to have been signed after the provision of the service.
The Audit report states that the first two agreements both for legal advice on the no confidence motion were signed on the 4th March, 2019.
Contract No. 37/2019 was awarded using the Direct Contracting/Single Source procurement method in the sum of US$15,000 by the National Procurement and Tender Administration Board (NPTAB) on the 14th March, 2019 via Reference No. 609/2019/52.
Contract No. 47/2019 was also awarded using the Direct Contracting/Single Source procurement method this time in the sum of US$14,000 by the National Procurement and Tender Administration Board (NPTAB) on the 27 March, 2019 via reference No. 751/2019/52.
CCJ
A third agreement was signed on the 20th May, 2019 for advice, preparing written submissions and appearing at the Caribbean Court of Justice (CCJ) on 9th/10th May, 2019 for No Confidence case (Contract No. 89/2019).
The Contract was awarded using the Direct Contracting/Single Source procurement method in the sum of US$61,705 by the National Procurement and Tender Administration Board (NPTAB) on the 24th May, 2019 via Reference No. 1362/2019/52.
On the same day the law firm signed yet another agreement for Preparing and Attending Case Management Conference at the Caribbean Court of Justice (Contract No. 90/2019) No Confidence Case this time it cost taxpayers US$47,259. The expenditure was approved by the National Procurement and Tender Administration Board (NPTAB) on the 24th May, 2019 via Reference No. 1371/2019/52.
The final agreement with the Belizean law firm was signed on the 11th September, 2019 for payment of Legal Services in the No Confidence Motion for 14th – 19th August, 2019 at the Caribbean Court of Justice (Contract No. 153/2019). Again using the single-sourcing method NPTAB approved the award totaling US$20,168 on the 17th September, 2019 via Reference No. 2456/2019/52.
Similarly local attorneys Rex Mc Kay, S.C and Neil Boston jointly on the 2nd April, 2019 signed an agreement for legal services to the Attorney General’s Chambers for the Period 21st December, 2018 to 22nd March, 2019 in respect to the No Confidence Vote in Parliament (Contract No. 49/2019).
This contract was worth GY $12 million.
Another agreement on the 7th May, 2019, covered legal advice, drafting and preparation, travel expenses and accommodation for the attorneys to travel to Trinidad for CCJ Court of Appeal April – May, 2019 (Contract 80/2019).
Taxpayers paid 13 million after NPTAB approved that award on the 10th May, 2019 via Reference No. (1222/2019/52).
The Eslyn David case filed by a coalition supporter following the March 2 polls cost the state $7.043 million with amounts totalling $6.222M paid directly to two retained Attorneys/ Law Firms.
For attorney Justin L. Simon, QC of Simon Rogers Murdoch Law firm his services predated his contract which was signed on 28 July 2020 for legal services on behalf of the Attorney General (Fifth Respondent) in respect to CCJ Appeal No. GYCV2020/002 Mohamed Irfaan Ali, Bharrat Jagdeo vs Eslyn David etal (Contract No. 69/2020).
The Agreement was awarded in the sum of US$24,300.
On 6 August 2020, an amount of $4.458M was paid to the Law Firm via Payment Voucher No. 52A000457, Cheque No. 07-422305, whilst the sum of $785,498 was paid to Guyana Revenue Authority as 15% Withholding Tax via Payment Voucher No. 52A000497 and Cheque No. 07-430497 dated 28 August 2020. Approval was given from NPTAB for Direct Contracting/Single Source via reference No. 1327/2020/52 dated 22 July 2020. The payment to the Law Firm was made by way of a Wire Transfer through Republic Bank, using an exchange rate of $215.50 and $7000 bank charges to process transaction.
Attorney Maxwell Edwards who represented Attorney General Basil Williams for a lawyer’s fee of $1.8 million was paid according to the Ministry but no Payment Voucher was submitted for audit scrutiny.
