Contractor out of India gets mining concession…enjoys privileged position with Govt
*gets US$12.5M for sugar packaging plant but never built one before
*gets US$4M drainage pumps contract but never built any before
*gets US$19M contract for Specialty Hospital, never built one
*blacklisted by GuySuCo for supplying poor quality parts
Over 25,000 acres of lands in the gold bush has been granted to an Indian contractor and a Parliamentary party is now raising questions.
The company, Indian-owned Surendra Mines Guyana Inc., was granted two Prospecting Licences (PLs) in early March, one year after applying for the licences.
The company is linked to Surendra Engineering Corporation Limited, the same company that built the US$12.5M sugar packaging plant at Enmore, East Coast Demerara. The two companies share the same directors.
The company was later awarded another contract to supply large drainage pumps to the tune of US$4M. Surendra also won a US$19M contract to build a specialty hospital at Turkeyen, East Coast Demerara.
The Prospecting Licences for the lands which are located in North West District, Region One, led the Alliance For Change (AFC) to believe that the company is a “privileged” one.
“There is no doubt in my mind that Surendra Engineering is now part of the PPP’s circle of family, friends and favourites. That company will get whatever it wants, tendered or untendered, because it is so close to the former President (Bharrat Jagdeo) and former Minister of Agriculture (Robert Persaud),” AFC Leader, Khemraj Ramjattan said last evening.
Ramjattan, whose party has seven seats in the National Assembly and together with A Partnership For National Unity (APNU), has a one-seat voting majority, said that indications are that Surendra never built a packaging plant, yet it won a contract worth US$12.5M.
“This was under Robert Persaud’s stewardship as the Agriculture Minister to construct the Enmore packaging plant. Though huge problems persist with the operational functioning of that plant, Surendra was paid all its monies.”
It will be recalled that when the project cost was challenged, Minister Persaud said that he would facilitate any value-for-money audit. The challenge was accepted by Chartered Accountant Christopher Ram. Immediately Persaud backpedalled. The value-for-money audit was never conducted, Ramjattan said.
Ramjattan also noted that while evidence suggests that Surendra never built a specialty hospital, it won a contract worth US$19M to build one here.
“It won even against Fedders Lloyd. Only in Guyana. It never built mobile nor vertical drainage and irrigation pumps, yet it won a contract for US$4M to provide a dozen or more pumps which were to have been delivered since eight months now. It won against the giant pump manufacturer Kirkloskar of India. No penalty. Rather, some generous extensions.”
The Parliamentarian said that Surendra was granted a number of other contracts to provide the Guyana Sugar Corporation with parts. “GuySuCo had to blacklist this company because the parts were not up to the endurance levels represented. Probably that is one reason why GuySuCo is where it is today.”
With no indications that Surendra was ever involved in gold mining, the granting of the PLs raises even more questions over the company.
“It never was in the mining of gold business, yet it gets prospecting licences. Marudi miners cannot even get a claim to work for their daily survival. Surendra has really struck gold here in Guyana.”
Ramjattan also said that it is the same Minister Persaud who is now the Minister of Natural Resources, a new ministry, which has jurisdictions over mining concessions in Guyana.
“The AFC will be asking certain questions concerning mining policy and administration in the Assembly. These developments it sees as being reeked with rottenness. The sultans and sahibs continue unchecked.”
The demand for gold in recent years on the world market has driven prices up with the sector raking in the biggest earnings for Guyana last year. Along the way came the demand for lands to mine and the problems that came along with it.
The Opposition, since the 2011 General Elections, has been waging a war against what it claims to be corruption in the administration.