Housing Ministry tightens compliance measures following Pres Ali’s fiery meeting

Staff of the Housing and Water Ministry’s Project Department have pledged to strengthen their oversight and enforce stricter compliance measures in order to ensure that projects meet deadlines and high standards are maintained.
This commitment was made earlier in the week, when Ministers Collin Croal and Susan Rodrigues met with them following President Dr Irfaan Ali’s no-nonsense early-morning meeting at State House on Tuesday.
During the Head of State’s engagement with ministers, permanent secretaries, engineers, consultants, technical staff and contractors, he sent a clear warning that delays and mismanagement of public projects would no longer be tolerated. In response, the ministry summoned engineers, clerks of works, and other staff of the Projects Department to remind them of their responsibilities: to maintain project quality, submit accurate progress reports, and work as a team.
In a brief interview with this publication/newscast, Minister Croal emphasised that President Ali’s recommendations for keeping public projects on track have been reiterated, and immediate changes have been made aimed at improving performance, transparency, and efficiency within the department.
“It is our internal issues we’re addressing, as well as some of the instructions that might have been given (on) the guidance. So, for example, ensuring that documentation is done, continuous writing of letters, and sticking to the project timelines that are provided”, Minister Croal disclosed.
“One of the things when you’re presenting projects is to ensure that you’re updated and you have a progress report being done; so, from your progress report, (it) will (be determined) whether there are delays; whether there are interventions that have to be made. So, all of that will be derived, and based on the sort of information that is provided, it will determine the course of action that has to be taken. That is an ongoing process, a continuous process, in any project implementation,” Minister Croal has said.
Croal explained that while such meetings are mandatory, the ministry has renewed its commitment to accountability in order to reassure the public of its dedication to meeting Guyana’s housing needs.
“So, you realize we have a large project team, and if you’re managing so many projects, it’s important that we meet collectively…,” the minister has said.
“We meet weekly with the leaders from the Project Department; but collectively, with a group, we do that now and then. But that’s a continuation, it’s a norm. However, some of the things that were pointed out, we use the opportunity to reinforce that in this engagement,” he explained.

Clamp down
During Tuesday’s engagement with those present, the Guyanese Leader had expressed frustration at the alarming state of delay across the country, and had warned that contractors whose projects remained uncompleted by year-end and they are more than four months overdue would face termination and blacklisting.
The Head of State had also warned that Government would impose liquidated damages on those failing to meet their contractual obligations; had underscored the need for a shift in mindset across the public sector; and had emphasised that the culture of complacency in project execution must end. The message was unequivocal: going forward, all parties involved in national development are expected to meet the highest standards of responsibility and timeliness.
“If you have projects to be completed, finish them before you bid again; because you will find yourself not being able to bid, because you’ll be blacklisted. All of the projects that are here that have not been completed before the end of the year will be terminated, and the records will be sent to the Tender Board”, the President had warned.
“From this very meeting, the approach of some of the contractors and engineers told me that the right balance of energy does not exist for an effective project management environment. If you don’t have the right structure for an organization, the right attitude, you’re starting negatively,” the President had admonished.

Compliance
Following concerns raised over the awarding of contracts to selected contractors, and their inability to meet project deadlines or build according to specifications, the Government has, in the past few months, embarked on the pursuit of greater accountability within the procurement processes across all sectors. Among the initiatives announced are the establishment of a Contract Compliance Unit (CCU) within the Ministry of Legal Affairs, and other units being established within the various ministries to assess the performance of contractors.
It was also announced in August that a nationwide initiative is underway to digitize contractor evaluations in order to combat and eradicate corruption in the public procurement process. This new system aims to standardize and enhance the ability of the Evaluation Committee of the National Procurement and Tender Administration Board (NPTAB) to monitor infrastructural projects and the allocation of Government contracts to various entities.
Contractors are currently required to report to the Evaluation Committee on the status of ongoing projects and the percentage of work completed on those projects. However, due to the dishonesty of several contractors, Government, by way of a direct order from President Ali, has begun to pursue liquidated damages for delayed state projects. In this regard, as of July, approximately $3 billion in charges for liquidated damages have been instituted over delays in public projects awarded through the Ministries of Public Works, Housing and Water, and Agriculture, among others.
The Public Works Ministry had, as of July 2024, issued letters to contractors on 365 projects which had experienced unjustified delays, seeking liquidated damages of $934.65 million.
Additionally, Government has made it clear that regional administrators and engineers would also be held accountable if they do not penalise contractors for breaches of their contracts.