Georgetown, Guyana – Responses to former Minister David Patterson’s questions in parliament have unveiled startling facts, prompting him to sound the alarm on what appears to be a massive transfer of public funds to select contractors by the Ministry of Public Works and the Procurement Department. This alleged misconduct has cost Guyanese taxpayers hundreds of millions of dollars. A prime example is the Kalco company, whose dealings with the government have raised serious concerns about transparency, accountability, and financial prudence.
In September 2022, Kalco was awarded a hefty contract worth GYD $830,293,458. Fast forward to the present, and the Ministry has already disbursed GYD $465,223,474 to Kalco, which is 56% of the total contract value. Yet, the project remains largely incomplete. Despite the massive payout, Kalco has reportedly completed only 38% of the work, leaving the public questioning what happened to the remaining funds.
The situation took a suspicious turn when an “amicable settlement” was reached between the Ministry and Kalco. Fmr. Minster David Patterson reported that, “no penalties were imposed on Kalco for failing to fulfill its contractual obligations, allowing the company to continue bidding for other government projects.” This decision sets a dangerous precedent, signaling to other contractors that inefficiency and non-compliance could potentially go unpunished.
Recently, the Ministry claims to have taken possession of GYD $150,600,000 worth of Kalco’s vehicles and equipment as compensation for the incomplete work. However, Parliamentarian Hon. David Patterson shared that, “there has been no tangible evidence provided to support this claim.” The lack of transparency further deepens the mystery surrounding the true extent of Kalco’s work and the Ministry’s handling of the situation.
According to Patterson, by the Ministry’s own admission, the recouped GYD $150.6 million suggests that Kalco completed work valued at GYD $311,623,474. This figure, representing 38% of the project, contradicts the payment of 56% of the contract sum, indicating a significant disparity in the project’s financial management.
The saga doesn’t end with Kalco. In a move that has raised further concerns, the Ministry awarded a new contract in April to S. Jagmohan via sole sourcing to complete the project which Kalco failed to complete. Jagmohan’s contract is valued at GYD $844,027,988. This amount is GYD $13.7 million higher than the original Kalco contract. Sole sourcing, a procurement method meant for situations where a company possesses unique skills not available elsewhere, appears to have been misused. S. Jagmohan’s contract encompasses the entire road upgrade project, not just the remaining 62% of the work left uncompleted by Kalco.
According to Patterson, “This decision bypasses standard procurement rules and regulations, casting doubt on the integrity of the process. The public deserves answers about why such a large contract was awarded without a competitive bidding process, especially when the scope of work had already been partially funded.”
The revelations brought forth by former Minister Patterson highlight systemic issues within the Procurement Department and the Ministry of Public Works. Taxpayers’ money is at stake, and the lack of accountability undermines public trust in government institutions.
The people of Guyana should demand a thorough and transparent investigation be conducted into these contracts and the procurement practices of the Ministry. The people of Guyana deserve to know how their hard-earned money is being spent and to ensure that those responsible for any wrongdoing are held accountable.
