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Patterson questions whether value for money being obtained from procurement commission

Guyana

APNU+AFC MP, David Patterson on Monday grilled Minister of Parliamentary Affairs and Governance, Gail Teixeira on whether the public was getting value for money from expenditure on the Public Procurement Commission (PPC) which he has frequently accused of not doing its work.

The start of the consideration of estates for the 2024 budget saw a back-and-forth between Patterson and Teixeira with regard to the PPC’s current expenditure.

When given the chance after the Committee of Supply had been convened, Patterson raised concerns over the PPC’s budget allocation, noting  a substantial increase. Patterson’s inquiry focused on the number of reports completed and published by the PPC since its re-establishment in 2022.

Teixeira stated that the PPC had completed four investigations in response to specific requests, with two reports published on their website. She detailed the staffing of the investigation unit, consisting of two investigators and five staff members in operations.

Patterson further questioned the use of external private consultants and pressed on the projected number of reports for 2024. To this, Teixeira stated that the projected reports were based on the requests received and highlighted factors such as document availability influencing their ability to meet the target.

The exchange also touched on the history of the PPC, challenges faced during its reestablishment, and the staffing levels. Patterson scrutinized the agency’s expenses, including salaries and benefits for the Chairman, Deputy Chairperson, and Commissioners. He further questioned the value for money, emphasizing the agency’s expenditure of $435 million over 18 months to produce only two reports. In response, Teixeira defended the PPC, emphasizing its role in anti-corruption efforts and oversight.

The discussions also covered various aspects, including the legal department and external consultations. In response to Patterson’s inquiry about the delay in report submissions, Teixeira said it was not a matter suitable for parliamentary discussion.

As the discussion progressed, Patterson’s questions seemed to rile Teixeira. On one such occasion, the MP asked about the operating units and whether they are currently functioning from within the Public Procurement building.

In response, Teixeira stated: “Mr. Speaker, I’m not sure what the honourable member is trying to get to. There’s one office that they have. He knows where the building is. It’s on New Garden Street. And that is the centre in the Office of the public procurement commission. And that’s where the staff is… where would they be elsewhere, as he tried to hint at something else. What is it? Don’t be conspiratorial, my dear friend, they have an office. They have started. Everybody goes to work. Everybody gets paid. Done the story”.

The  exchange revealed a range of perspectives on the PPC’s performance, expenditures, and challenges encountered since its reestablishment.

Patterson has strongly criticised the PPC over what he sees as its inaction over the investigation into the award of a pump station contract to Tepui. He has said it did not meet the requirement for the award as it  was formed in August 2022. One of Tepui’s principals also has privileged access to Vice President Bharrat Jagdeo. Since October last year, Patterson has been pressing the PPC to probe the matter. The PPC has written the procuring agency, the National Drainage and Irrigation Authority and the National Procurement and Tender Administration Board (NPTAB) seeking information to enable an investigation but there has been no further word.

Patterson has also strongly criticised the PPC over its handling of a complaint by Akamai Inc over the award of a contract for line equipment.

Last month, Patterson’s party, the Alliance For Change (AFC) criticised the PPC, accusing it of abdicating its responsibility in probing the complaint by Akamai Inc and ignoring its powers as accorded by the Constitution of Guyana.

Responding to statement from the PPC criticising Patterson, the opposition party charged that the Pauline Chase-led Commission which was established in July 2022 was ineffective.

Patterson had accused the PPC of “whitewashing” the complaint by Akamai Inc in relation to the award of the line equipment contract. The PPC found that based on the information provided by NPTAB, Akamai had not been compliant with two requirements. The PPC made no attempt to interrogate the NPTAB or the evaluation committee that scutinised the bids and said that it currently did not have the legislation framework for this.

The AFC vehemently disagreed with this, pointing out that the previous PPC conducted investigations which entailed speaking to the NPTAB and the evaluation committees.

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Chinese consortium lands US$38mn Guyana solar contract

Guyana

Guyana Power and Light has awarded work for utility-scale solar capacity and associated battery energy storage program Guysol.

The winner of the 18-month contract was a consortium of Chinese companies Sumec and XJ Group, procurement information shows.

BNamericas previously reported that eight groups had submitted offers in the call for eight plants in three lots and a combined 33MWp. The tender was launched in December 2022.

The joint venture picked up lots two and three to build the infrastructure in the areas of Linden and Essequibo, specifically, five plants for lot two (US$19.3mn) and energy storage for lot three (US$18.6mn). Additional information was not disclosed.

Funds from the Norwegian Agency for Development Cooperation and administered by IDB are being used to finance Guysol, project summaries for which were released by Guyana’s Environmental Protection Agency in November.

 

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Guyana secures $23.27mn agreement with India for aircraft procurement

Guyana

In a significant move aimed at bolstering the capabilities of the Guyana Defence Force (GDF), the Guyana Government has inked a Line of Credit (LOC) Agreement worth US $23.27 million with the Export-Import Bank of India (EXIM Bank) for the procurement of two aircraft.

“Government is investing heavily in strengthening the capabilities of the GDF, in particular, in some of its specialised wings, such as the Air Corps and the Coast Guard,” asserted a statement released by the Guyana government.

This investment underscores New Delhi’s commitment to modernising and equipping the Guyana Defence Force (GDF) for evolving security challenges in the region. The agreement also marks India’s continued commitment to bolstering Guyana Defence Force (GDF) capabilities, stemming from President Irfan Ali’s 2023 visit to India’s Hindustan Aeronautics Limited.

The procurement agreement was signed between Ashni Singh, Senior Minister in the Office of the President of Guyana, and Sanjay Lamba, Deputy General Manager of the Line of Credit Group at Indian EXIM Bank last week.

The ceremony was attended by the High Commissioner of India to Guyana, Dr. Amit Telang, Chief of Staff of the GDF, Brigadier Omar Khan, and Chief Planning Officer, Dr. Tarachand Balgobin.

The acquisition of two aircraft under this agreement marks the largest-ever investment in the capitalisation of the force, signifying a pivotal moment in Guyana’s defence modernisation efforts. This strategic move aligns with the broader cooperation between the two nations, as evidenced by the $100 million line of credit extended to Guyana during the visit of Indian External Affairs Minister Jaishankar.

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NIDCO advises public to beware fraudulent procurement transactions

Trinidad and Tobago

The National Infrastructure Development Company Limited (NIDCO) is warning the public to watch out for fraudulent procurement transactions.

In a release, the company said is charged with the responsibility for carrying out the procurement of goods, services and works on behalf of the Government of Trinidad and Tobago.

To fulfil this mandate, NIDCO issues notices of tenders via its website and national newspapers, ensuring its procurement activities are executed in a transparent, ethical and effective manner.

The public is advised of the following:

1. The signing of contracts for NIDCO’s projects only takes place in person within NIDCO’s Offices, overseen by a representative from NIDCO’s Legal Department. Therefore, the signing of any contract outside of NIDCO’s offices is fraudulent and not authorised by NIDCO.

2. The collection of cheques only takes place within NIDCO’s Offices, overseen by a representative of NIDCO’s Finance Department. The collection of cheques outside of NIDCO’s Offices from any individual, whether purporting to be an officer or agent of NIDCO, is fraudulent and not authorised by NIDCO.

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Feud between `Critic’, Mohamed could spell end of controversial pump station contract

Guyana

A feud between social media personality, Mikhail Rodrigues and businessman, Azruddin Mohamed over finances could bring an end to the controversial award of the $865m Belle Vue pump station which had come under attack by opposition MPs.

On social media yesterday, Mohamed disclosed that the contract of the Tepui Group Inc to build a wharf at Lot 49 Parker Street, Providence, East Bank Demerara was terminated as a result of $60 million being owed to him by Rodrigues also known as  “Guyanese Critic”.

The Tepui Group, in which Rodrigues is a principal,  had been awarded the massive contract by the National Procurement and Tender Administration Board (NPTAB) for the Belle Vue pump station despite complaints that it was unqualified and did not have the wherewithal for it.

Mohamed related to the Sunday Stabroek that Rodrigues had borrowed money from him for the construction of the wharf but never paid him back.

“He owes me sixty million Guyana dollars, I lend him money so that he  can build this wharf at Providence on the East Bank and up to now he cannot account for the sixty million dollars which is loaned him”, Mohamed related.

The businessman said that the social media commentator had also purchased an excavator from his company Mohamed’s Enterprise in the year 2022 which was eventually “confiscated” as a result of Rodrigues failing to pay the full amount for the machinery.

Mohamed also noted that Rodrigues has an outstanding loan of $20 million to purchase equipment for a business venture.

The businessman said that he would be taking legal action against Rodrigues.

Rodrigues yesterday morning during his programme on social media admitted that he indeed purchased an excavator from the Mohameds but decided to return it after his friendship with the family became toxic.

He said that he decided to return the excavator to the businessman as he “wanted nothing to do with him”.

As a result of cutting ties with the businessman, Rodrigues said that he took it upon himself to purchase new equipment to commence works at the wharf and pump station.

Against the backdrop of the debt being owed to the Mohamed family, by Rodrigues, the Sunday Stabroek learnt that works on the Belle Vue Pump station couldn’t commence as Tepui doesn’t have the requisite finance and contracting experience to conduct such works.

APNU+AFC Members of Parliament Ganesh Mahipaul and David Patterson have argued for months that the contract awardee did not meet the standard evaluation criteria for bidders.

Patterson when contacted yesterday said that now that the truth has been revealed on social media that the Tepui Group Inc. was in no financial position to conduct works on the pump station and was inexperienced as it relates to contracting services, the Public Procurement Commission (PPC) should now re-examine the matter as it relates to the $865 million contract awarded by the NPTAB to the said company.

The former Minister of Public Works  had strongly criticized the PPC over what he sees as its inaction over the investigation into the award of a pump station contract to Tepui.

He had said for months that the contract did not meet the requirement for the award as the company was formed in August 2022.

Since October last year, the Alliance For Change Member has been pressing the PPC to probe the matter.

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