Irregularities in award of contracts in APNU-controlled Region 10 – PAC hears

…AG unable to find reasons why lowest bids not accepted

A situation was on Monday flagged by the Public Accounts Committee (PAC), whereby millions of dollars worth of contracts were not being awarded to the lowest responsive bidder and there are no minutes to explain why.

The Region 10 Regional Administration was on Monday summoned before the PAC, to answer for some of the findings in the 2016 Auditor General report. One of the findings was that 14 contracts totalling $38.5 million were awarded in 2016 to neither the lowest or most responsive bidders.
Additionally, 17 contracts for the execution of drainage and irrigation works as well as road works were awarded. These contracts were also not awarded to the lowest or most competitive bidders.
Contracts for the delivery of public works and services are usually awarded by the Tender Board to persons who make the lowest bids while satisfying all the criteria on the tender. In the case of Region 10, however, there were no minutes to explain the Tender Board’s decision, prompting PAC Member Juan Edghill to seek answers from Regional Executive Officer Dwight John.
“Since my assumption of office, we have a dedicated Tender Board Secretary that takes care of all the minutes. It is well recorded and all Tender Board members would sign after perusing said minutes,” John said.
But John’s predecessor, Gavin Clarke, was adamant that minutes were taken in 2016 by a staff who was assigned to this role. Ultimately, Edghill issued a stern reminder that contracts must be awarded to the lowest or most competitive bidders.

“The procurement Act says that is how you award a contract, to the lowest or the most competitive bid. The Auditor General is saying it did not happen. And in order for us to be able to verify justification for why it did not happen, the justification is found in the minutes. And the minutes did not state. And the fact that the minutes did not state it, it is left open. And he (Auditor General) is asking that the minutes state it.”
“So the process is left to still be judged, because from the submissions that were made, the only reason the Auditor General can know it didn’t go to the lowest or most responsive is because he was able to see the scores and the bid prices of all the bidders,” Edghill explained, noting that this also makes it almost impossible for aggrieved bidders to file a protest with the bid protest committee.
PAC member and Public Affairs and Governance Minister, Gail Teixeira meanwhile urged the new REO to take heed of the lessons from 2016, to make sure they are not repeated going forward.
“I think that for the new REOs and so on, the lessons that we find in 2016 should be a caution to them to ensure that they don’t fall into the same habits as previously,” Minister Teixeira exhorted the regional team.