-Auditor General’s report says that key documents not provided
A total of US$4.458m was paid over for construction of the Guyana Embassy in Brasilia but the contract was eventually terminated and new bids solicited for the completion of the structure.
The recently tabled Auditor General’s Report for 2023 said that In 2019, an award was made in the sum of US$4.499m equivalent to $937.945m for the construction of the new Guyana Embassy, Ambassador’s Residence, and Diplomatic Staff Quarters in Brazil.
The engineer’s estimate was US$7.370m. The agreement was signed on 14 October 2019 and based on documents provided, works had commenced on 16 October 2019, with a duration of eighteen months. The planned completion date was 16 April 2021, with a defects liability period of six months.
However, a signed contract document with other pertinent details was not submitted.
“It should also be noted that no documentation was provided regarding any approved extension of time being issued to the contractor, or a revised completion date for the works”, the report said.
The scope of works comprised the construction of a continuous reinforced concrete and structural steel complex to house a Chancery, the Ambassador’s Official Residence, and Diplomats Residence, along with swimming pool, recreational areas, tennis court, grass field and other site development works including car park, ramps, security guard huts, technical/utility building and landscaping.
At the end of 2022, the report said that the contractor received $890.036m. According to documentation presented, the contract was terminated on 23 January 2023. The termination agreement, which had a list of materials on site attached, stated that the “owner” will pay the “contractor” the remaining balance of US$177,998.22 within seven days from the present termination agreement.
The report said that on February 1st 2023, the amount of US$178,283.02 equivalent to $37.172m was paid to the contractor, revising the total payments to US$4.458m equivalent to $927.208m.
“However, we could not ascertain the quantities of works paid for at the time of termination, whether the advance payment was fully recovered or if liquidated damages and the provision of a Performance Bond were applicable under the contract, while the physical verification on 19 July 2024 revealed that approximately sixty-five percent of the permanent works on the main buildings were completed”, the report stated.
At the time of reporting in September 2024, the report said that the Ministry had engaged an Engineering Consultancy firm to prepare bid documents for completion of the Chancery section of the complex and bids were solicited and received from qualified contractors. An evaluation report was subsequently done and submitted to the National Procurement and Tender Administration Board (NPTAB) and an award was granted.
Further, the sum of $525m was allotted in 2023, for provision of buildings – Guyana Embassy in Brazil. According to the Appropriation Account, the full sum was expended.
“Audit checks revealed that on 18 December 2023, four payments totalling $525m were processed through the IFMIS (Integrated Financial Management Information System) and on 15 January 2024, the full sum of $525m was wire transferred to the Guyana Embassy in Washington Bank Account № 15247597.
The Head of the Budget Agency said in the report that Cabinet has since agreed that the Chancery would be completed. In this regard, contractors in Brasilia, Brazil were invited to submit bids for the construction of this phase of the project. At the time of the report the Cabinet, following a submission and recommendation from the NPTAB, had granted its no objection to facilitate the award of a contract. The Audit Office recommended that the Head of Budget Agency ensure that the contract document and supporting documentation are submitted for audit.
