Dear Editor,
In a Guyana Times article of October 24, it was reported that the Guyana Water Incorporated (GWI) has instituted legal proceedings against a contractor who has failed to complete a $123 million contract to replace aged transmission lines at Bel Air Park, Georgetown.
The contract was awarded in November 2017 by the then PNC/AFC Government and was to have been completed four months later. During the contract period, the contract sum was increased by some 14 per cent from $108 million to $123 million.
In 2020 a new PPP Government took over and the officials at GWI found that the contractor had been paid for work in eight tranches totalling $114 million+ representing 93 per cent of the contract sum. Further, examination by GWI revealed that only 11.25 per cent of contract work was completed which it valued at $39 million+ and concluded that some $87 million+ had been overpaid to the contractor.
In accordance with the terms and conditions of the contract, GWI decided to terminate the contract and is instituting legal proceedings to recover its claimed overpayment of $87 million+ made to the contractor.
Unfortunately, missing in this article is the responsibility and action which were taken by those persons who monitored construction progress, evaluated the work done by the contractor and recommended to GWI, the amounts of partial payments which were made to the contractor. Guyanese would want to know as to why certified payments were made to the contractor for over two years for work not done as well as increasing the contract sum by $15 million without a “red flag” being hoisted by those responsible to alert GWI to stop payments?
Minister Bishop Juan Edghill noted at a ribbon cutting ceremony at the site, “that although there were corruption, negligence and gross mismanagement in the execution of this contract to replace aged transmission lines, his Government (PPP) must bring relief to suffering Guyanese and improve the lives of the people”.
Given the evidence of lax financial control in contract execution and the statement that there was no audit at GWI since 2016, Senior Minister Edghill should initiate a Government inquiry into the financial management of GWI. If misappropriation is found, then fitting action should be taken against those responsible.
