Investigation launched for faulty contracts by former engineer

A request for a criminal investigation be launched against Dannie Ramdular, has been made by Public Works Minister, Bishop Juan Edghill, on Monday. This is after a number of discrepancies were discovered in signed contract documents.

Ramdular, a former engineer at the then Public Security Ministry, who sat before the Public Accounts Committee (PAC), was questioned about faults unearthed, where a $3.2M contract was awarded, but the document contained a blank Bill of Quantity. Edghill being a Committee member, pointed out that the duration and defects liability period of the contract was not even identified as part of the special condition of the agreement. He disclosed that the contract, which was signed in October 2017, was awarded for the tiling of dormitories at the Timehri Prison.

Ramdular in responding to the PAC, pointed out that three copies of the same contract were signed. He said that one of the copies remained at the ministry, while the contractor and the agency received one each. “So, for some reason the copy here at the ministry was a tender document which is just the same contract document without the relevant information inside,” Ramdular said in defense. However, Minister Edghill was not pleased with his explanation. Edghill noted that a priced Bill of Quantity is part of a contract, declaring that an agreement of such nature without the important component is not properly executed.

“If a contract is to be executed detail need to be stated in that contract, price, duration, and all the other details, and it is only a contract when it is signed; parties agreeing to these details,” Edghill reiterated. It was revealed that among other things, the sum of $3.1M was paid to the contractor. However, physical verification of the works revealed that the contractor was overpaid the sum of $212,875.

“If you are preparing payment to send to the agency to verify you got to look at some numbers, rates and do calculation,” Edghill argued. It was noted that the Auditor General’s report also discovered that the actual works completed, according to the payment valuation, is different from the blank Bill of Quantity, which was in the contract document and no variations to change the scope of the works were noted in the documents examined.

Further, another $4.9M contract, signed in November 2017, was awarded to renovate the Mazaruni dormitories, ceiling, floor and the replacement of windows, with the duration of six weeks for completion. It was revealed that the defects liability period could not be determined. Some $4.8M was paid to the contractor. However, physical verification of the works revealed that the contractor was overpaid the sum of $869,640.

Additional perusing excerpts of the Auditor General’s report for the years 2017 and 2018, Ramdular was grilled, for which the Auditor General’s report pointed out, falsely certifying the renovation work of the self-acting sluice at Western Section, Lusignan, that valued some $4.6M. While the report clearly stated that its physical verification on May 3, 2019 revealed that the contractor was still on-site effecting works to the structure, the former engineer said “no,” maintaining that the works were completed and only remedial works were ongoing at the time.  According to the report, “physical inspection of the concrete works to the structure revealed shoddy works, with honeycombing of the concrete and pieces of cement bags casted into the finished structure.”

“If two weeks after you signed a contract, you prepare a final payment voucher that went to the ministry’s finance department for payment, signed by both you and the contractor, when the work was not completed, it was not done we are in breach, serious breach,” Edghill stressed.  It was noted that with the numerous discrepancies before the PAC and the engineer holding firm to his answers, Edghill said, “as a member of the PAC, I am making a request (that) this committee adopt a process that the FS (Finance Secretary) refer this matter for a criminal investigation”.

An opposition committee member seconded the request. As such, Ramdular was asked by the committee chairman to recuse himself from further proceedings.