“We will not allow corruption” – Edghill orders probe into alleged asphalt plant racket

Public Works Minister Juan Edghill has ordered an investigation into allegations of an alleged racket at the asphalt plant, a State-run entity.

Reports in the media on September 22 are that contractors working on Government projects were mandated to take their asphalt from the Garden of Eden plant and would get huge discounts under a scam that stretched all the way to the Ministry of Public Works.
According to the report, persons from the Ministry would order a certain amount of asphalt from the plant to be billed to the Ministry. However, they will collect less than what was ordered, and the difference is sold at discounted prices to contractors.
This would result in significant losses in revenue as well as contractors benefiting from the racket being at an unfair advantage over other contractors.
The asphalt plant is being operated by the Demerara Harbour Bridge Corporation (DHBC).
Minister Edghill has since expressed concern over the reports.
“I’m very concerned and distressed by it, especially since there are allegations that may implicate staff of the Ministry of Public Works,” he stated.
“As the Minister responsible for this sector, both the Ministry of Public Works and the Demerara Harbour Bridge, under whose management the asphalt plant falls, I have ordered an investigation,” Minister Edghill announced on Tuesday.
“I invite members of the public, including contractors and anyone who has information that could bring an end to this alleged racket and stop the haemorrhaging of the public purse, to please, at the appropriate time, provide us with the information,” Minister Edghill stated.
“We will not allow corruption in any form, shape or fashion. The people must get value for their money and corrupt public officials must not be allowed to benefit,” he contended.
Minister Edghill pointed out that at this time, the report is simply an “allegation” but he assured that “we will get to the bottom of it”.

$200M owed
After the first week of taking office, Public Works Minister Juan Edghill said that the Ministry owes the Demerara Harbour Bridge (DHB) some $200 million in payments.
Edghill made it clear that this is not inclusive of the monies that the previous A Partnership for National Unity/Alliance For Change (APNU/AFC) Government “borrowed” for the Public Infrastructure Ministry to pay a Dutch company to do a feasibility study into the new Demerara Harbour Bridge crossing. Rather, this sum represents asphalt that the Ministry used but never paid for.
“This is taking asphalt to do works, at least that is the explanation we received. And that is a matter we have to look at,” he had told this publication in an interview.
It was in July of last year that a $488 million German-made asphalt plant arrived in Guyana. The new asphalt plant was touted as having the power and capability to produce approximately 160 tonnes of asphalt per hour – almost four times faster than the asphalt plant that was in use at the time.
The new asphalt plant, which is supposed to be able to process plastic bags and bottles, was procured through public tender during 2018 by the Demerara Harbour Bridge Corporation, signalling an increase in operations and growth in demand. However, it is yet to be commissioned.
When it comes to the old asphalt plant, it was revealed last year that the APNU/AFC Government took money from the DHB asphalt fund to pay Dutch company LievenseCSO for a feasibility study on the new DHB crossing.
In fact, it was the then PPP Chief Whip and now Parliamentary Affairs Minister, Gail Teixeira, who wrote to the Public Procurement Commission (PPC) in June of 2019 to draw its attention to the misuse of the asphalt fund accounts.
Reports indicate that in 2017 the APNU/AFC Government used $215.3 million from the fund, while in 2018 a further $74 million was withdrawn. The original sum approved by Cabinet for the contract was $161.5 million. It is understood that the contract price for LievenseCSO, which was handpicked by the former Government to carry out the consultancy, was actually $148 million.
PPC Chairperson Carol Corbin had subsequently referred the matter, together with the Commission’s report on LievenseCSO’s sole sourcing, to Auditor General Deodat Sharma in order for him to take the relevant action.