The 2023 Report of the Office of the Auditor General has pointed out that work on a $2b wharf for the Guyana Defence Force (GDF) has been delayed as when auditors checked in June this year the contractor had not been mobilized to the site.
The report noted that an award was made for the construction of reinforced concrete wharf at Coast Guard Headquarters, Ruimveldt by the National Procurement and Tender Administration Board (NPTAB) in the sum of $2.040 billion against an Engineer’s Estimate of $2.624 billion. The contract was signed on the 28 December 2023, with construction period of thirty months for completion, with a commencement date of 26 February 2024. There is a defect’s liability period of twelve months after practical completion.
“As at 31 December 2023, an Advance Payment totalling $191.659M was paid to the Contractor, which represents 9.39% of the total Contract sum. A physical verification of the completed works, revealed that the Contractor was not mobilised to site and no works had commenced, while four months had already elapsed since the start date of 26 February 2024. Recommendation: The Audit Office recommends that the Force urge the Contractor to pursue the works, closely monitor the work progress and provide a copy of the Performance Bond for audit examination”.
This contract has been a source of controversy. It was awarded to Kares Engineering Inc and this award was challenged by another bidder.
Following a complaint by Correia & Correia Ltd, the Public Procurement Commission (PPC) found that the $2.1b GDF wharf contract was incorrectly awarded to Kares Engineering Inc and the matter was then referred to the Office of the Auditor General.
The summary of the findings of the PPC on June 7th this year said “In light of (the) commission’s finding that the tender was awarded to the lowest bidder but not the lowest evaluated bidder as required by S. 39 of the Procurement Act, Cap. 73:05, the matter herein is referred to the Auditor General, pursuant to Article 212AA(1)(l) of the constitution”.
Article 212AA(1)(l) of the constitution states that the PPC could “liaise with and refer matters to the police and the Auditor General”.
The Auditor General’s 2023 report did not address what should be done with the contract but merely said that the works should be closely monitored.
Kares Engineering Inc has come to be seen as a contractor favoured by the government and in 2022 it won a contract for the reconstruction of the North Ruimveldt Secondary School even though it had performed poorly on the Kato Secondary School contract in 2012.
