The Public Accounts Committee (PAC) yesterday ordered that a criminal investigation be launched into the actions of Dannie Ramdolar, a former Civil Engineer at the Ministry of Public Security after he yesterday attempted to justify the full payment for a contract signed in December 2018 before all of the works were completed.
While considering the 2018 Auditor General’s report, the PAC examined the full payment of a contract for the renovation of a self-acting sluice at Western Section, Lusignan days after the contract was signed and works had not been completed.
The audit office revealed in the report that during a visit to the location on 3 May 2019, it was discovered that the contractor was still on-site effecting works to the structure months after the full payment. The report stated that the engineer certified that the works were completed since December 16th 2018. However, the visit proved that the engineer had falsely certified that the works were completed, the report stated.
Ramdolar in his response yesterday to the findings told the committee that the contractor was executing “remedial works” at the time of the state auditors’ visit to the site. He maintained that works were completed and at the time of the visit the contractor was engaged in remedial works.
In rebuttal, the Audit Office engineer yesterday informed the PAC that during their visit many items encompassed in the scope of works had not been completed. The auditors stated too that in cases where remedial work must be undertaken, there is usually a menu of items to be rectified and during their perusal of the documents provided this was absent.
Misleading
“This is misleading the PAC and I feel very badly about it. First it was genuine errors and an overworked environment but this is preparing an entire work certification for payment and the officer is misleading the PAC…Mr Chairman we have the FMAA (Fiscal Management and Accountability Act) laws in Guyana for a reason,” Government member and Minister of Public Works, Juan Edghill said to the PAC before calling for action to be taken against the former engineer of the ministry. Ramdolar resigned in 2021.
Opposition Member of the PAC, Ganesh Mahipaul stated that there is no justification for the engineer’s action of falsifying a certificate of works completion.
Mahipaul asserted that technical officers need to conduct their duties with honesty as they are the ones accounting officers depend on for guidance. He stated that their misguidance only creates avenues for taxpayers’ moneys to be spent recklessly.
“Do your jobs. It is your word that the PS (Permanent Secretary) or accounting officer is taking to process payments. It is on your signature that these works are paid for… if the AG’s office did not pick up this…what would have taken place?” Mahipaul posited.
PAC Chairman Jermaine Figueira said that the revelation was rather disturbing to say the least.
“Notwithstanding you deliberately misled the PAC, a parliamentary body who has a duty to account for the resources of the people… When you came here to the PAC you were told that any false information provided to the PAC will be treated as perjury and you perjured yourself by continuously providing false information… that is totally unacceptable,” Figueira told Ramdolar before asking him to recuse himself from the hearing. Following the decision by the committee, Figueira informed Finance Secretary Sukrishnanlall Pasha to be guided by the committee’s decision for a criminal investigation to be launched.
Ramdolar, who was then permitted back into the Chamber, responded by saying that he stood by his answers provided to the PAC. This revelation led Mahipaul to enquire from the engineer if he had falsified the certification of works to make way for payments. Ramdolar responded in the negative. He explained to the PAC that while he certified the works, payments were not made to the contractor until the work was completed. It was noted that the cheque was prepared but not handed over to the contractor.
“It must be noted that payment was not issued until everything (was completed) … and that was after May,” Ramdolar said.
“We are in serious breach, serious breach,” Edghill said at the revelation and questioned if this has been a practice at the Ministry.
Guidance
In response, former Permanent Secretary of the then Ministry of Public Security, Daniella McCalmon told the committee that based on the guidance of Ramdolar as the technical officer, the payment was made in a bid to prevent the unpaid sum returning to the Consolidated Fund.
However, Finance Ministry Accountant General, Jennifer Chapman cautioned that while that might have been the case, the agency should have sought to re-budget for the sum in their 2019 expenditure and list the project as a rollover.
“The rules are that unexpended sums must be returned to the Consolidated Fund and there is nothing stopping you in your budget next year to ask for the sums to be allocated as a multi-year project,” she posited.
When asked what actions were taken against Ramdolar following the discovery by the Auditor General’s office, McCalmon said that he was sternly warned to desist from such actions. She however could not recall if the warning was verbally done or by way of letter.
In another project, from 2017, it was revealed to the PAC, that while Ramdolar was the engineer on remedial works at the living quarters at the Mazaruni Prison, he gave the ok to the contractor to use alternative materials without first clearing it with the Permanent Secretary.
In his explanation yesterday, Ramdolar said that during the document preparation, the Guyana Prison Service had listed the item as an alternative if the required one was not available. He stated that because they could not find the required material to be used in the project, the contractor had mobilized the alternative material on the ground and was given permission to use it. He said that if the material was not utilised it would have resulted in an opening in the structure, thereby posing security threats.
The 2017 Auditor General’s report stated that a contract for renovation works to the Mazaruni Prison dormitories, ceiling, floor and replacing windows in the sum of $4.986M, went to the lowest of four bidders. The Engineer’s Estimate was $7M. The contract was signed on the 28th of November 2017, with a duration of six weeks. However, the defects liability period could not be determined. Amounts totalling $4.886M were paid to the contractor. Physical verification of the works revealed that the contractor was overpaid the sum of $869,640.
In the contract the contractor was expected to install 6G expandable mesh to existing window bars, however, the contractor was unable to source the item and utilized 10G mesh instead.
While the Auditor General’s Office was informed that the contractor was replacing the 10G expandable mesh with the 6G and had agreed to refund the sum of $596,640 that was overpaid, during scrutiny yesterday it was revealed that the mesh was never replaced but the overpayment was refunded.
