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– cites breach of contract terms
Attorney General (AG), Anil Nandlall has dispatched letters to BK International Inc. and the Courtney Benn Contracting Services Limited terminating existing construction contracts with the Government on the basis that the companies have breached the terms of their contract.
According to the AG, the Government reserves its right to institute legal proceedings against the companies for compensation for breach of contract.
On November 1, 2020, the AG wrote to the Company Secretary of BK International informing the individual of the termination of the contract for the construction of the Yarrowkabra Secondary School on the Linden Highway. The contract was entered into between the Ministry of Education and the company on December 31, 2019 at a fixed price of $826,757,737. It was expected to be completed on March 12, 2021.
However, Nandlall stated: “Thus far, your company has only completed 5 percent of the schedule works. As a consequence, your company has committed a fundamental breach of the terms of the contract and, as a result thereof, the Government of Guyana hereby exercises its right to terminate the contract with immediate effect.”
As it stands, BK International must now pay the Government 10 percent of the contract sum as liquidated damages and surrender the performance security. These are steps being taken by the Government in addition to instituting legal proceedings against the company for “compensation for breach of contract”.
In the past, Head of BK International, Brian Tiwarie has spoken out against the current Administration while it was in the Opposition. In 2016, he accused former President Donald Ramotar of corrupt practices in which Ramotar’s brother benefited.
In April 2020, when a People’s Progressive Party/Civic (PPP/C) Facebook page stirred up controversy over the transfer of property by the Government to BK Marine Inc. –owned Tiwari– Tiwari told the Guyana Chronicle: “That’s how the PPP operates. If they want to keep you behind the bars, they put you behind the bars; that’s how the PPP do it. You either be with them or you’re not for them.”
Meanwhile, the Government has also terminated the contract of Courtney Benn Contracting Services Limited for the construction of the St. Roses’ High School. Once again, writing to the Company Secretary, the Nandall informed the individual that the company similarly breached its terms of contract.
According to the AG, the contract was entered into on August 8, 2018 between the Education Ministry and the company at $352,709,745 with an expected completion date of April 8, 2020. He said that the Government later executed an addendum to the contract on December 23, 2019 extending it for 20 months with an expected completion date of August 23, 2021. The contract sum was increased by $412,304,357.
However, the AG stated: “Thus far, your company has only completed 9 percent of the schedule works.” Similar to BK International, Courtney Benn Contracting Services must pay the Government 10 percent of the contract sum as liquidated damages and surrender the performance security.
Both companies have been asked to clear the site immediately.
