AG 2018 report: Contractor collected $13M advance despite no security bond

…engineer implicates regional administration in cutting, holding cheque

During Monday’s sitting of the Public Accounts Committee (PAC), an engineer who was attached to the Region One Regional Democratic Council (RDC) implicated the regional administration when probed on the Auditor General’s findings that a cheque was cut and held for a contractor that never submitted a performance bond.

The PAC met to discuss the findings of the Auditor General’s 2018 report, concerning Region One (Barima-Waini). One of the findings dealt with a contract for the construction of an X-ray lab at the Pakera District Hospital.
The PAC demanded explanations from engineer Rawle Boyer on why $13.4 million was paid and a $4.7 million cheque cut, held and rolled over for a contractor that did not submit a bond security. However, the engineer would go on to implicate the regional administration, at the time led by Leslie Wilburg.
“In order for a cheque to be prepared, to be held for next year, the signatories to that cheque including the accounting officer [and others] who participated in the process? Was this a decision of the regional management?” PAC Member and Public Works Minister Juan Edghill questioned.
“Through the chair, I did not act alone. Cause most of [those] who make the final call on whether or not a cheque will be cut or payments will be made [is] the Regional Executive Officer. In 2018 it was Mr Wilburg,” the engineer said.
When it comes to the contractor being paid 60 per cent of the contract sum even though a bond was not provided, the engineer said that certain factors were considered. These factors included the contractor not collecting a mobilisation advance.
“In this project, normally in Region One we pay for up to 30 per cent mobilisation with the security bond. In this case the contractor did not request mobilisation payment. He started work. And that’s why we paid a first part payment and not mobilisation,” Boyer said.

Training accounting officers
Finance Secretary Sukrishnalall Pasha said that starting next month, the Finance Ministry will be training accounting officers. While PAC Chairman Jermaine Figueira welcomed the move, he noted that it may take prosecution before accounting officers toe the line.
“The reality is we have accounting officers who are irresponsible in the execution of their duties. And all of the training your office will provide may not be the solution to the delinquent accounting officers and their support staff.”
“What may be required is some additional punishment, reprimand, something that will compel them to do what is required. If we have to start jailing some of these accounting officers, probably that might be the solution. But let’s start with the training first,” Figueira said, expressing hope that those participating in the training will appreciate the seriousness of their role.
In the AG’s report on the Pakera District Hospital, Matthew’s Ridge, Region One, it had stated that a physical verification of the project revealed that the works were to be completed by January 23, 2019 based on the contract duration.
However, at May 23, 2019, four months beyond the completion date, the works have been abandoned and were incomplete with no materials onsite. It was also noted that despite the fact that the works were abandoned, payments were approved and processed by the RDC in excess of the works completed at the time. (G3)