GPL pays $1B more than the engineer’s estimate – stench of corruption unmistakable

 

In early 2016, Minister Joe Harmon mysteriously visited China. Questions still abound relating to why he went, who he met and who paid for the trip for him and his team. He insisted he went to find the US million that a Chinese company owes Guyana for the Government’s GTT shares. It is clear, however, that this was a made-up excuse for a trip that elicited major suspicion, suspicions that persist.

But suddenly after Harmon’s China trip, the Chino-phobia that APNU/AFC manifested while in Opposition disappeared. In Opposition, they had accused the PPP of selling out Guyana to the Chinese. Now APNU/AFC has granted a GPL contract to a Chinese company worth $4.6 billion, more than $1 billion higher than both the engineer’s estimate and the lowest bid. Enquiring minds want to know if there is any link between Harmon’s trip to China and this GPL contract. The dots are screaming for connection.

In late 2015, a tender to install 25,000 smart meters and a length of transmission lines with an engineer’s estimate of $3.5 billion was advertised in the local and international media. The submitted bids were opened in February 2016. Five companies tendered for the project – China National Machinery Import and Export/Sino Hydro Corporation (China) – $7.1 billion; Multi Electrical System NV (Suriname) – $6.4 billion; China National Machinery Import and Export (CMC)/China Sinogy Electric Engineering Co Limited – $4.6 billion; Cummings Electrical Limited – $3.67 billion and Enrique Lourido/Fixit Depot – $3.5 billion.

After the opening of bids in February 2016, nine months of secrecy followed before Cabinet provided a “no-objection” in November 2016. The contract with CMC, the Chinese company, was more than $1 billion higher than the engineer’s estimate and more than $1 billion higher than the two lowest bids, both of which were from local contractors – Cummings Electrical, whose bid was $3.67 billion, and Fixit Depot in collaboration with Enrique Lourido of Colombia, whose bid was $3.5 billion. Cummings Electrical has a long history of high-quality work in Guyana and Fixit’s partner has done more complicated smart meters and transmission lines installation in Colombia and other countries in South and Central America.

When Fixit challenged the award in court, the Attorney General argued that the local contractors were disqualified based on international procurement rules, not on the Procurement Act of Guyana. The AG further argued that there was an urgency moving forward with the contract, given that it took so long to be awarded. He contended further that any further delay would lead to Guyana losing the loan. Essentially, he argued that barring the local companies is merely collateral damage for APNU/AFC’s sloth. Noteworthy, neither the European Union nor IDB ever indicated they will rescind the loan because of the long process. Like the parking meter contract, these excuses give fodder to the growing perception that this GPL contract is another incredible APNU/AFC corrupt deal.

CMC, the winning bidder, had a previous GPL contract to install underwater transmission lines across the Demerara River. APNU/AFC in Opposition castigated the PPP for what they pronounced as “poor, incompetent and below acceptable quality” work. They, in fact, opposed payments to CMC when CMC approached the PPP Government for increased cost of the project. Suspicious minds want to know how CMC, therefore, was able to overcome “poor performance” on the Demerara River transmission line to get approved for this contract.

Even as the CMC contract with its more than $1 billion higher price tag is stirring public outrage, there is another GPL contract given to a mystery company to replace Wärtsilä. The Minister of Infrastructure has strenuously avoided answers to the PPP’s questions in Parliament relating to this arrangement. This same Minister had initially refused to fire the APNU/AFC-appointed GPL CEO in 2015 for unauthorised sole-sourcing prepaid meters at a cost of $870 million. Fortunately, the corrupt deal was leaked and APNU/AFC reluctantly abandoned it to avoid a scandal. Public outrage then led to the resignation of the CEO.

Even as these GPL scandals are coming to the attention of the public, GPL’s operation is worsening on a daily basis, bringing back fears of the 1980s, when blackout hours exceeded non-blackout hours several fold. The APNU/AFC-appointed Chairman of the Board, one of their donors, Robert Badal, was one of the critics who promoted, along with APNU/AFC, Chino-phobia in Guyana. China has been a good friend of Guyana and Chinese companies have served Guyana well. But clearly something is amiss in the present APNU/AFC-GPL arrangement. Follow the stench, connect the dots, and corruption is bound to show up. (Send comments to [email protected] and see my fb page at [email protected])