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The Alliance For Change (AFC) has expressed deep concern with Minister of Public Works, Juan Edghill’s admittance that over GY$400 million was paid in advance to Kalco Construction for the Conversation Tree Road Project which remains incomplete. The AFC notes the failure of the Trinidadian company to deliver has left Guyana Government and Guyanese taxpayers with significant losses.
Flaying the People’s Progressive Party (PPP) government for its continuous mismanagement of public funds in contractor payments, the AFC in a statement notes there are multiple instances where contractors have been advanced substantial sums without adequate oversight or recourse.
In oil rich Guyana whilst most of Guyana’s spending goes towards infrastructure, half the population lives in poverty. According to a recent World Bank Fact Sheet 48 per cent of the Guyanese population live on less than US$5.50 per day, which represents approximately GY$1200.00.
The AFC highlights that during a parliamentary session its Member of Parliament David Patterson inquired about the total expenditure on the project, the sum advanced to Kalco, and whether any liquidated damages were enforced. “Minister Edghill revealed that Kalco was awarded the contract for $830,293,458 GYD in September 2022 and subsequently received GY$465,223,474 GYD or 56% of the contract sum, as an advance payment.”
The gravity of the situation is highlighted with Edghill unashamed admittance no liquidated damages or penalties was applied but the government reached an “amicable settlement” with Kalco. This settlement purportedly included the seizure of GY$153,600,000 worth of equipment to offset the outstanding advance payment, but no tangible proof of this equipment seizure was provided, the party notes.
Government’s apparent wastage of taxpayers’ money underscores concerns by the Opposition and sections of society the PPP provides preferential treatment to “friends, family and favorites,” unconcerned about accountability, the country’s reputation and disparity in spending for other critical aspect of human and national development.
An analyst told Village Voice News were the party’s founder leader Dr. Cheddi Jagan alive, it would be interested to hear what he would have said about this massive “waste, fraud and abuse.” Jagan popularised the term when the PPP was in opposition in accusing the then People’s National Congress (PNC) government of not being prudent in its management of taxpayers’ money.
Under the PPP government, notedly of President Bharrat Jagdeo, Transparency International ranked Guyana the most corrupt country in the English-speaking Caribbean.
Delving further on the Conversation Tree project the AFC finds even more alarming is that a new contract worth GY$844,027,988 was awarded to S. Jagmohan Construction and General Supplies Inc. to finish the work, and this was awarded through sole sourcing. The sum represents GY$13 million more than the original contract. This raises serious questions about government’s procurement practices and commitment to fiscal responsibility, the party said.
Commenting on the situation, Patterson, who was former Minister of Public Works, highlights that the government has effectively allowed Kalco to walk away with at least GY$311,623,474. The absence of transparency and accountability in this process is indicative of a broader pattern of mismanagement of public funds by the PPP/C government, he warned
To this end the AFC is calling for a thorough investigation into the matter and is demanding government adopts stringent measures to ensure accountability and transparency in all future contracts. The AFC emphasises “It is imperative that the citizens of Guyana have confidence that their vital monetary pool, which in many instances they will have to repay to lending agencies for generations, is being managed prudently and that those responsible for fiscal mismanagement are held accountable.”
