Controversial construction company, St8ment Investment Inc is expected to recommence works on the construction of the Primary School at Bamia/Amelia’s Ward, Linden, some two months after it abruptly halted construction.
That information was related to the Region Ten council yesterday by Deputy Regional Executive Officer (DREO) Seewchan during the RDC’s statutory meeting.
Seewchan, who was filling in for Regional Executive Officer (REO) Dwight John at yesterday’s meeting, told the Regional Chair and Councillors that a meeting was held with both St8ment Investment and E&A Consultants where a commitment was made to recommence work on the project today. He further stated that E&A Consultants also committed to submitting an updated work plan which would see at least 8% of the construction works being completed on a monthly basis.
That work plan is due today. Additionally, some $68m had been paid over to the contractor.
The project is being undertaken under the Ministry of Local Government and Regional Development and in July of last year, the bids were opened. Four companies – Bulkan Timber Works Inc ($349,595,065), St8ment Investment Inc ($346,327,748), Orin’s Supreme Enterprise ($348,726,772) and A Nazir & Son Contracting & General Supplies ($340,549,671) – tendered for the project.
St8ment, with the second-lowest bid, received the contract which was signed by the principals of the company and REO John.
The project was expected to last for 20 months and is intended to benefit almost 800 students. Additionally, a one-year defects liability period, after the completion of works, is catered for.
Prior to the commencement of the project, the Regional Administration met with both St8ment Investment and E&A Consultants and it was agreed that monthly meetings would be conducted to apprise the parties of the progress. However, those meetings have not been happening and the RDC is unsure as to the reasons behind that lapse.
Works were stalled for over two months with no explanation provided to the RDC as to the reason behind the move. Regional Chairman Deron Adams yesterday said that the RDC remains concerned about the pace of the project as well as the contractor’s failure to deliver on what was promised.
At yesterday’s meeting, the DREO informed the RDC that the Administration is also preparing a contingency plan in the event of further delays by the contractor. He noted that they would be approaching the Ministry of Finance to seek permission to divert the funds to cover other projects within the region should there be any more delays.
Last week, Minister of Local Government and Regional Development Nigel Dharamlall told Stabroek News that a meeting between the relevant stakeholders would have been facilitated on Monday. It is clear the decision to recommence works was taken at that meeting although the Ministry is yet to release any information.
Dharamlall also said last week that he is aware of work being behind schedule but could not give a reason for that.
“I am aware that the works are behind schedule but I cannot say if it is stalled or anything. I have been informed that the works are not going as planned and so I asked that there be a technical meeting between the contractors,” Dharamlall noted.
…incomplete foundation
Yesterday, Stabroek News visited the site of the project and it was evident that works had been stalled for a number of months now. The steel on the foundation is already corroding and a large chunk of the foundation is yet to be completed.
It is over one year now since the contract was awarded.
Stabroek News also observed that, apart from a few wheelbarrows and a concrete mixer, there was no other equipment on site. With works slated to commence today, one expected that mobilization would have already commenced but up to 3 pm yesterday there was no equipment.
This newspaper also spoke with a few residents in the area and they said that it is almost three months now since the construction work had ceased. Additionally, they noted that prior to the stopping of work, the contractors had significantly slowed down their activities.
“We see them man slowing down the work long before them stop. Them cut down on the labourers and so long before them stop. I think them man stop the work since like halfway in July but them used to had one and two people coming but for the past couple months now nobody nah deh on site here,” one of the nearby residents related.
The RDC yesterday, once again, expressed its concerns over the inexperience of the contractor.
St8ment Investment Inc, a company whose principals have been closely linked to the PPP/C government, was controversially awarded the $346 million contract for the construction of the school last year. The company, whose principals are Ferguson and Kerwin Bollers of Hits and Jams Entertainment along with Aubrey ‘Shanghai’ Major and Kashif Muhammed of the Kashif and Shanghai football tournament, was just formed a few months prior to bidding for the project and has no proven construction background.
St8ment was incorporated in March of last year and since taking office, the PPP/C government has appointed the company’s principals: Major as Chairman of the Guyana Tourism Authority while Muhammed is Chairman of the National Sports Commission’s board.
Following the announcement of the signing, several questions were raised about the company’s competence to execute a project of this nature along with its experience in the construction industry since its principals are from sport and entertainment.
At yesterday’s meeting, those sentiments were once again echoed with the councillors questioning St8ment’s experience as well as the attitude of the consultant.
Councillor Mark Goring said that the current cessation of work cements the RDC’s contention that the contract was awarded to a company that had no capacity to execute the project. He also questioned the reasons behind the deal as well as the lack of a report from the consultant on the challenges encountered.
In response, DREO Seewchan said that the Regional Administration has been monitoring the project daily and keeping in contact with the consultant. He added that the contractor did indicate that they had some setbacks with accessing machinery to execute the works. Seewchan told the RDC that the information was relayed to them at various statutory meetings but all of the councillors present there could not have attested to receiving those reports.
“Let us not anticipate because the duration of the contract, the timeline hasn’t … elapsed. So you don’t know what methodology the consultant and contractor will come up with tomorrow in terms of how they will be able to increase the level of work. So while we have concerns [and] I respect all the concerns by the councillors, let us not anticipate [whether works would go as planned or not]. When that [work plan] report is being furnished we would be able to provide that information,” Seewchan told the RDC.
Non-response and locked out
On September 6 Regional Chair Adams wrote to the REO about the lack of progress on the project. He also called for greater monitoring.
The letter said “the Council requests your (REO’s) urgent provision of the following information at the statutory meeting of the Council on Thursday, September 8th, 2022 and that the consultant provide a representative to attend this meeting to address queries the Council may have on this project. The information requested includes, but is not limited to the following: the consultant’s evaluation of the work progress to date and of whether the project will meet its deadlines for this year; the current financial expenditure on the project as of September 1st, 2022; what are the current challenges being faced on the project; a report of any and all issues of concern that were flagged by the consultant on the project and how they were resolved/addressed.”
The Council is still waiting on the update from both the contractor and consultant.
Yesterday, Adams again echoed the concerns raised in the letter and told the RDC that he is still awaiting a response from REO John.
Several councillors also expressed their dissatisfaction with the way in which the project is being managed along with the lack of communication from the administration. They note that changes have been made to the scope of work and design of the project but the RDC is still waiting on that information to be channelled its way.
“The scope of works and other critical information was not shared with the council. How can we have effective oversight when we don’t have the necessary and relevant information to guide us along? Material changes were made which would result in structural changes to this project, again it took the work of councillors to bring this to the fore only for a hasty decision to share the information that adjustments were made to design,” one of the councillors lamented.
Gavin Clarke, the engineer attached to the Regional Administration, attempted to appease the RDC by providing a technical update on the project thus far. He noted that they too are concerned about the delays in the project but added that a work plan is not needed at this time to recommence work on the foundation of the building.
He said that the engineering department will be closely monitoring the project to ensure that it remains within the agreed timeline.
Meanwhile, Chair of the Regional Works Committee Eleze Benjamin-Hall reported that she is not invited to meetings relating to the project. She said that an invitation was supposed to be extended to her to attend the meeting of stakeholders last Monday but that was not done. She noted that the work of the committee cannot go on if they are not privy to the meetings and reports.
Benjamin-Hall said that last month was the first time the committee received a comprehensive report on the project.
Following a series of reports by Stabroek News, last year, Howard Bulkan, Managing Director and Chief Executive Officer (CEO) of Bulkan Timber Works Inc, one of the companies that submitted a bid for the project, questioned what exactly the NPTAB is evaluating when considering bids. “St8ment Investment Inc was awarded the contract and I reckon in 20 months the public will judge for themselves if this was the correct decision by the Honourable Minister for Local Government and Community Development. I know the residents of Linden and the surrounding areas will be paying attention to the construction of this school,” Bulkan had written in a letter to the editor of this newspaper.
Bollers, one of the principals, had taken to their radio station to address the questions raised in the local press about the company. He admitted that the company was only formed a few months prior to the bid but said that they are being advised by a geotechnical engineer.
