The procurement commission says it has not received any updates from the NDIA on the controversial pump station contract awarded to Tepui Inc and it has therefore raised this matter with Minister of Agriculture Zulfikar Mustapha.
It gave this response in reply to question from the Sunday Stabroek.
When it investigated the award of the pump station contract to Tepui, the Public Procurement Commission (PPC) had cited privity of contract as preventing it from taking more decisive action in the matter.
It had however recommended a pathway through which the contract could be cancelled if the work was not done in a satisfactory manner.
Recommendation VII in the PPC’s report of April 16, 2024 stated:
“VII. The contract for the subject tender having been entered into, it is recommended that the procuring entity strictly monitor the performance of the contract and if the awarded bidder TEPUI is found in breach, that the necessary steps, including termination if considered to be prudent, be taken to ensure that value for money is achieved. In light of NPTAB’s disclosure as to the other three (3) pump stations, to wit, ‘Jimbo, Meten Meer Zorg and (Pouderoyen)’ which were advertised and evaluated at the same time as the subject tender herein, Belle Vue, also “lacked prior experience specifically in pump station construction” but were deemed to have “had completed a project of a similar nature” and therefore the “same leniency was applied”, the recommendation herein also applies to those pump stations. The commission pursuant to its constitutional mandate, functions and powers shall exercise oversight in this regard”.
Nearly three months after its report and the call for strict monitoring and its warning that it will exercise oversight, the PPC says that no information has been supplied by the National Drainage and Irrigation Authority (NDIA), hence its recourse to the Minister.
The PPC has complained in several investigative reports that procuring entities and the National Procurement and Tender Administration Board (NPTAB) have ignored requests for information or supplied it very late or incompletely.
The award of a pump station contract to the unqualified Tepui, whose principal, Mikhail Rodrigues is known to have close connections with Vice President Bharrat Jagdeo and other members of the PPP/C administration sparked a furore and a complaint to the PPC by APNU+AFC MP David Patterson.
Six months
More than six months after the complaint was lodged by Patterson, the procurement commission found major breaches in the evaluation process but said it could do nothing about it as a contract has already been concluded.
The PPC said “…on the entry into a contract, privity of contract issues arise. There is nothing within the statutory framework which permits the commission to revoke, rescind, recall and or in any way alter, suspend or stop the contract once entered”.
The award of the $865m Belle Vue Pump Station to Tepui Inc had raised questions from the outset as its key principal Rodrigues was not involved in construction.
In its 35-page summary of April 16, 2024, the PPC elicited answers from the NPTAB – whose evaluation committee made the choice of Tepui – and the procuring agency, the NDIA. Not only were both tardy in answering the PPC, they only provided some of the documents requested.
Tepui was required to have had the experience of having completed one project of a similar nature within the past five years. Similar projects “shall include pump stations, sluices and drainage structures”. Having been incorporated less than a year before, Tepui did not have these qualifications, yet the evaluation committee of the NPTAB found its bid to be responsive.
When the PPC asked the NPTAB and the NDIA to justify their decision, they cited what they described as similar-type of works which Tepui had done for other clients. They also admitted that two other tenderers for pump stations were similarly not qualified but that “lenience” was showed.
The summary of findings said that Tepui itself submitted as part of its tender, a letter addressed to the NDIA and dated June 13th, 2023, under the hand of “Winston Martindale, Director” captioned “Record of Past Work Experience” in which it is stated – “Our company was registered in August 2022 and has now commenced the process of bidding for projects, hence we do not have any past work experience but our team of personnel have years of experience under upgrading and rehabilitation of roads as indicated on their respective resumes.”
Tepui also did not provide a bank line of credit. It provided a line of credit issued by Puran Bros. Later a letter of credit issued by Caricom General Insurance Company also appeared but this also was ineligible.
Tepui did not submit – as required – an audited financial statement as it was not in existence for a year.
In terms of equipment requirements, Tepui, the summary of findings said, did not show evidence of three pieces of equipment.
It also fell short of its bid security requirement.
