House divided over $500M more for D’Urban Park Project

…Opposition calls for forensic audit into project finances

The National Assembly found itself divided on Wednesday over giving or withholding approval for an additional $500 million to be paid out from the Consolidated Fund to a number of contractors and other persons owed varying amounts for works undertaken on the controversial D’Urban Jubilee Park Project.
The rancour engulfed the House when the Speaker of the National Assembly put to a vote the capital expenditure under the Public Infrastructure Ministry’s bvudget, but was met with a resounding no.

A division was subsequently called for, resulting in 32 members of the House voting to approve the monies, while 31 members voted against it.
Member of Parliament Odinga Lumumba was absent at the time of the vote from the Opposition benches, while Natural Resources Minister Raphael Trotman, was absent for the Government’s side.
Prior to the division of votes, the House heard that on November 22 last, six days before the Budget was presented to the nation – Homestretch Development Inc (HDI) had written to the Finance Ministry indicating that it owes contractors $500 million more and was looking to have this liability liquidated.
The revelation did not go down well with former Minster within the Finance Ministry, Juan Edghill, who openly questioned the timing of the inclusion of the $500 million in the Budget, since the Ministry had only been informed six days earlier.
In fact, Edghill argued that Government was in fact looking to turn over money to a private company – HDI – for works it had done using contractors that company had engaged in the project.
He used the occasion to draw reference to Substantive Minster David Patterson’s assertions that the Government did not actually engage any of the contractors that the Ministry was seeking approval to be paid over.
Voicing objections and questioning the methodologies to be used, Edghill sought to enquire of the Minister precisely what law of statue would be used to legitimise such a transfer to a private company.
Patterson, in his retort to the House, said Government would be using the same mechanisms that had been used to transfer some $138 million to Omprakash “Buddy” Shivraj that went towards the construction of the then Buddy’s International Hotel, in addition to another $38 million that went towards the construction of the Cacique Hotel.
Edghill, however, dismissed this assertion saying those monies in fact represented a loan to the two projects and had not been extracted from the Consolidated Fund.
The Minister denied too the assertion that Government had in fact employed a mechanism to spend some $900 million on a project from the Consolidated Fund, while at the same time avoiding any kind of scrutiny.
The trading of barbs came about when Minister Patterson told the House that the Public Infrastructure Ministry will in fact not be paying any of the contractors owed for works on the project and that the money will in fact be paid to HDI.
Among the objections to such a mechanism is that HDI is in fact a private company not even listed under the Ministry’s Government’s list of organisations slated for subsidies and contribution.
Minster Patterson was adamant that the asset in the form of the D’Urban Jubilee Park is in fact an asset that belongs to the State.
Edghill also sought to no avail, to find out whether Minster Patterson, as an elected representative, is comfortable with expending in excess of $900 million on a project undertaken by a private company where there was no procurement process to get the work done.
Patterson maintained that the project represents an asset of the State and belongs to the people of Guyana.
Meanwhile, as it relates to the overall expenditure and cash and kind donations, Public Infrastructure Minister Patterson told the House that a total of $27.7 million was received in the form of donations from private individuals and entities, while another $37 million came about ‘in kind’.
As it relates to the donations, the Minister provided a list to the House. Among the donors as listed by Minister Patterson are three anonymous contributors, Palm Court, TEOCO, STP Investments Inc, Mohamed’s Cambio and RUSAL, among others.
He listed among those given donations in kind as BK International, Courtney Benn Contracting Services Limited, BaiShanLin Forest Developers Inc, Demerara Sand and Aggregates, Barama, Buxton Gas Station, Splashmins, and NABI Construction, among others.

The Opposition member querying the expenditure was adamant during the consideration that with donations being less than 10 per cent of the $1 billion price tag, the project could not be one that could be considered as done privately.
He was adamant that it is reasonable to conclude that HDI was just a company that was used to engage private contractors of which ultimately all of the money to be expended was to be paid by taxpayers and without any tender process.
Meanwhile, the Opposition is calling on the Auditor General of Guyana to conduct an immediate forensic audit into all revenues, expenditure and donations received.
In a statement late Wednesday evening from the Opposition Leader’s Office, the PPP expressed its disgust and outrage over the coalition Government’s raiding of the treasury for the additional $500 million to be plugged into the controversial D’Urban Park Jubilee Project, which is clear proof that the Guyanese people were deceived into believing that the project was privately funded.
“It is important to note that out of an expenditure of over $1 billion, only $27 million was received in cash donations and $33 million was received in ‘kind’ donations. The Ministry of Public Infrastructure has allowed itself to be used as a conduit to accommodate this highly irregular and vulgar transaction,” the Opposition stated.
The Party went on to remind of the motion it put forward for disclosure on the sums expended, the contractors and amounts paid to them, liabilities and other information that would have ensured accountability and transparency. This motion was defeated on November 21, 2016 when it was debated during which time the Public Infrastructure Minister selectively provided skimpy information.