An audit examination of a Ministry of Public Works (MoPW) contract to purchase three motion scales has disclosed that former Permanent Secretary Balraj Balram signed the contract which had no National Procurement and Tender Administration Board (NPTAB) number and was without any witnesses.
To date, the three motion-scales are yet to be in the Ministry’s possession, some four years after the contract was signed despite the supplier, NevPro Realization Limited of Jamaica agreeing to have it delivered within a 90-day period.
An audit done in 2017 revealed that as of September of that year, the scales were not delivered. However, it was found that two of the scales were on the wharf. The Ministry has since tried to engage the contractor with regard to the supply of the third scale and the submission of the relevant documents needed to clear the two already in Guyana. However, to date, there has been no response.
The three mobile motion-scales cost $72.264 million.
According to a report by the Department of Public Information (DPI), Permanent Secretary of the Public Works Ministry, Vladim Persaud told, the Public Accounts Committee (PAC) on Monday that several attempts were made to contact the supplier but the efforts proved unsuccessful. Minister of Parliamentary Affairs and Governance Gail Teixeira expressed displeasure at how the then Ministry of Public Infrastructure dealt with the matter over the past years. “I am amazed that one; there has been no disciplinary action taken against anybody in the Ministry, there has been no calling in of anybody to investigate, even the police. There has been no lawyer’s letter… I can’t understand a Ministry being so indulgent,” she was quoted as saying, adding that NPTAB could not have awarded the contract without the former Government’s Cabinet’s no-objection.
Meanwhile, Persaud said that a letter will be sent to the Attorney General with regard to a way forward with the matter emphasising that their main objective is to have all the scales in the Ministry’s possession.
During Wednesday’s PAC meeting, Teixeira revealed that the full contract sum was paid on December 31 and the performance bond was not presented for an audit examination. She pointed out that this was a violation of the Procurement Law.
According to Persaud, it was stated in the contract that there would be a 50% advance while the remaining 50% would be paid upon the submission of the bond and the delivery of the scales. He noted that the total sum was paid through two payments following the signing of the contract, adding that they have not been able to find evidence of the first bond payment that was supposed to be presented to the Ministry before the advance of the first 50%. He also noted that the bond was not taken out for the second payment.
He explained that the two payments were made on December 30th, 2016 and based on information available to them, the two payments were drawn on the same day.
Meanwhile, the audit report also showed that the contract was awarded to a sole bidder.
When questioned about this by members of the committee, Persaud said the decision to sole-source the scales was made by Cabinet. He pointed out that at that time they were not in possession of the Cabinet decision paper and they have since reached out to the NPTAB to have an evaluation report as the Ministry does not have this in their possession.
He also admitted that the waiver on sole sourcing by the cabinet was done after the date of the contract.
The contract was signed by Balram who was subsequently questioned about the lack of witnesses’ signatures on the contract. Member of Parliament Ganesh Mahipal stated that the contract was not dated and he found it strange that the NPTAB number was not stated. He asked Balram for clarity on the matter.
However Balram said that he could not remember, adding that he had signed several contracts that year but he does not recall signing one without an NPTAB number or without witnesses. In addition, he said that he cannot even remember the name of the company that was awarded the contract, but is certain that the scales were not yet in the possession of the Ministry when he gave up his portfolio.
Discussions regarding this matter will continue this week.
