In his wide-ranging address to the National Assembly on Thursday, President Ali sought to offer assurances that his administration is doing all it can to ensure transparency in public procurement which has been seen as an area prone to corruption of all stripes.
The President said: “Amongst the initiatives implemented to strengthen public procurement since returning to Office, the National Procure-ment and Tender Administration Board has conducted an extensive review of all standard bidding documents and finalized a new set of bidding documents. Let me say we are the first to recognize that the tender system requires further modernization and reform and we are committed to this modernization and reform. Let us be the first to acknowledge that we must build a paperless system, a system that is less reliant on human interference, a system in which public accountability continues to be open and transparent. That is the system you believe in and that is the system we’re committed to building.
“We are not about hiding our heads away from challenges and problems, we are about confronting issues, confronting problems, but more importantly, finding the solution and building the institution to support the development trajectory of our country. Additionally, since our assumption of office, a new Public Procurement Commission has been appointed, and that entity has been discharging its important constitutional function in a rigorous and thorough manner.
“At the same time a new bid protest committee has also been appointed as an additional layer of protection to safeguard integrity of public procurement system”.
The need for continuous improvement in procurement procedures is evident. However, as long as the government and the PPP continue promoting patronage and cronies ahead of professionalism even Fort Knox will be easily breached here. The President gave a ringing endorsement of the Public Procurement Com-mission (PPC). Its performance has been poor, some of its full-time commissioners seem to have time for a range of other things except their principal responsibilities, it has been dilatory in its investigations and its decisions or summaries of findings have been unimpressive and prone to avoiding definitive action.
If there was one procurement that completely undermined – and still does – the government’s claim to probity it was the award by the evaluation committee of the National Procurement and Tender Administration Board (NPTAB) of the Belle Vue Pump Station contract to Tepui Inc helmed by Mikhail Rodrigues. This is how the system works. As long as the PPP/C government exerts influence over the NPTAB and its committee of evaluators the most rigorous and well-intended bidding documents will be defeated.
As repeated in the 2023 report of the Office of the Auditor General on the Accounts of Ministries, Departments and Regions, Tepui Inc failed nine out of the 18 evaluation criteria. How then was it awarded the Belle Vue pump station contract? How did the other bidders – several very experienced – do so badly. Did they fail more than nine of the criteria or is it the case that they dare not protest for fear of not getting contracts in the future? That aberrant award by the evaluation committee warranted an immediate investigation by the NPTAB itself and the Ministry of Finance which it comes under. Instead the NPTAB defended the award. The procuring agency, the NDIA/Ministry of Agriculture should have rejected the choice but it didn’t. When it was its turn, the PPC descended into all types of contortions to avoid having to call for the immediate rescission of the contract. It did however say that it wanted to be kept abreast of developments by the NDIA in case the latter should have to move to end the project.
Recommendation VII in the PPC’s report of April 16, 2024 stated: “The contract for the subject tender having been entered into, it is recommended that the procuring entity (NDIA) 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”.
The PPC has not since been provided with any information by the NDIA on the progress or lack thereof of the project.
The defence of the indefensible continues. The Auditor General’s Report for 2023 tabled in Parlia-ment on Thursday underlined at last check how little work had been done by Tepui on the Belle Vue Pump Station even though $160.8m had been advanced by the state.
The Auditor General’s Report said that up to August 14, 2024 no works were in progress at the time of the visit of the auditors.
It presented the following findings which also showed a number of adjustments that unnecessarily favoured Tepui.
a) The award was first made on 14 August 2023 for the sum $865.544m, which corresponds with the amount stated in the Contractor’s Bid Form and priced bills of quantities. This award was however rescinded and a second award was made on 15 September 2023 to the same contractor for an increased sum of $870.564m, which is $5.020m higher than the sum stated in the contractor’s bid, and which was the price of an NDIA’s Procurement Department priced Bills of Quantities seen in the contract.
b) An examination of the Contractor’s bid submissions showed that the contractor failed to satisfy nine out of the eighteen requirements set out in the evaluation criteria.
c) The contract was signed on 22 September 2023, with a duration of eighteen months for completion. According to documents seen, Addendum (№.1) to increase the percentage for advance payment from 15% to 30% was made on 21 September 2023, one day before the Contract Agreement was signed. Addendums №.2 and №.3 were for paying the Contractor for materials on site and changing the Contract start date from 6 October 2023 to 29 January 2024 respectively.
d) The Contractor was mobilized on site; however, no works were in progress at the time of the visit on 14 August 2024, while only the construction of two earthen coffer dams, excavation works, and demolition of the old existing sluice structure were completed, along with the installation of a test pile. Two excavators were seen on site, along with two site office/containers, a water pump and a quantity of timber piles and steel sheet piles at the time.
This finding by the Auditor General’s office, which was reported by Stabroek News, prompted an immediate defence by the NDIA which had been silent for months on the ill-starred project.
It said that as stipulated in the contract, the effective commencement date for the construction of the pump station was February 6, 2024. This was quite startling. The contract was first awarded in August of 2023 and it has a start date of February 2024? What does this say about contract management?
The NDIA’s upshot was: “The project is still within the contractual period and the contractor is still on site. The Ministry of Agriculture and NDIA with its Technical Officers have been meeting with contractors, including Tepui Group Inc. and consultants to ensure that projects are completed as per contract”.
It is clear that the government and its various arms are protecting this contract at all costs even in the face of the pronouncement by the Office of the Auditor General which should be considered the authority on this matter.
The Tepui contract had its equivalent in the Fip Motilall Amaila road contract under the Jagdeo administration. President Ali can say as much as he wants. The evidence of corruption in procurement is available in the arrangements for the contract for the Belle Vue pump station and until firm action is taken words don’t mean a thing.