E. C. D four-lane extension… Contractor provides evidence to support claims

The controversy surrounding the termination of a contract for the extension of the East Coast Demerara road is intensifying with the contractor accusing the Ministry of Public Works of being less than truthful when it accused him of fraud and non-performance.

The Managing Director of the contracting firm, Falcon Transportation and Construction Services, believes that the Ministry appears to be burying its head in the sand when it comes to taking the appropriate action against the real fraudsters and culprits.

The contractor was responding to accusations made by the Ministry in a statement issued on Monday and carried by this newspaper under the caption “Non-performance and fraud led to contract termination”.

He remains convinced that his contract was terminated in retaliation to his suspension of work on his section of the project over non-payment by the Ministry of Public Works.

A section of the suspended road works on the East Coast Demerara.

 

This situation he believes arose from his unwavering stance on demands for kickbacks allegedly made by Ministry officials.

The Ministry is maintaining that “In view of the non performance by the Contractor on this project, the advice of the Attorney General’s Chambers was sought and the Ministry was advised to terminate the contract for fraudulent practices.”

The contractor has produced documents to substantiate his claims that his business with the Ministry was above board.

He has also provided this newspaper with names, dates and time to support allegations that he was badgered by officials for kickbacks on the contract he received.

The Ministry is claiming that the contractor falsified compressive strength test results to prove that the concrete used for drains construction met the required strength.

“The Faculty of Technology, University of Guyana, whose advice was sought, has confirmed that the results of the tests were indeed falsified.”

Not so
However, the contractor produced documentation which purports to show that the Head of the Department/Coordinator of Industrial Testing, Faculty of Technology, University of Guyana, had certified several certificates for three, seven and 28-day strength tests.

The certificates were dated between March and May this year. One of them bore the signature of acknowledgement of a Ministry of Public Works official.

The Ministry had pointed out in its statement that the Contractor was written to on January 26, 2012 and on February 10, 2012, and that meetings were held with him and his representative on January 30 and on May 18, 2012. He did not respond to the claims of falsification.

However, this newspaper has seen a letter from the contractor dated January 27, to the Coordinator, Works Service Group, Ministry of Public Works, informing that an experienced technical person who was working with the University of Guyana had done the testing.

Additionally, the Contractor had written to Minister Robeson Benn, informing him that the Ministry’s equipment for testing the strength of concrete was malfunctioning. After the tests were certified by the University of Guyana he was instructed by a ministry official to proceed with concrete works.

The casting of concrete walls, the contractor said, was done in the presence of the said Ministry official on Sunday June 3 with no negative comments.

He added that he is now shocked that the Ministry is raising the issue of non performance.

Where was the supervisor?
“The Ministry is making a lame excuse. How come it took the ‘qualified engineers six months to learn that I was doing substandard work? This speaks volumes about how the ministry conducts projects with taxpayers’ money,” the contractor told this newspaper.

Another issue raised by the Ministry was what it termed “questionable” invoices submitted by the Contractor.

The Ministry said that five out of 11 invoices submitted by the Contractor from suppliers had blacked out invoice numbers, and claims for the same items (steel) twice.

However, the contractor provided this newspaper with a letter from the supplier, Gafsons Industries Limited, Parika Branch, certifying that the invoices were legitimate.

The supplier even invited the Ministry to contact their offices should it require any further clarifications. It is not yet clear if this was done.

On the question of the Ministry not being informed about the kickback demands made to the Contractor by its personnel, this newspaper has seen a letter addressed to Works Minister Benn informing about the unethical practice by its project supervisor.

Significantly, the Contractor disclosed that the issue of the four percent demand made by a ‘big man’ at the Ministry of Finance is no secret since several senior officials of the Public Works Ministry had discussed the matter at the first project meeting in November last year.

He said that present at that meeting were himself and his company engineer, Ministry officials including Rickford Lowe, Leon Goring, Phillip Bryan, Kelvin Clarke, Jeffrey Walcott, James Lindo, Marlon Ramsamoj and Naipaul Purai.
“All of these people are aware of it,” the Contractor maintained.

He believes that the ministry, based on the unfavourable reports presented by some “unscrupulous and greedy” Public Works officials, initially delayed payments to him in an effort to undermine his operation.

The Contractor questioned how the Ministry was able to ascertain correctly that his firm was doing substandard work when its supervisor “is not at work on the site on numerous days”.

The Ministry has even confirmed that it had granted an extension of 68 days due to the constant correction of designs.

On July 2 the contractor wrote to Minister Benn, “Despite several requests for payments since March 2012….my firm has not been paid for approved works completed. The engineers when contacted say they are working on the payments, or they have some queries and corrections.”

As a last resort he wrote to Head of the Presidential Secretariat Dr. Roger Luncheon on July 21 for his intervention to ensure that he was paid for the work completed.

E.C.D. four-lane extension… Works Ministry to approach police with fraud allegations against contractor

The Public Works Ministry has disclosed that it will be approaching the police this week with evidence supporting its claims of fraud against the contractor, Falcon Transportation and Construction Services. This is in keeping with the advice of the Attorney General.

Although the Ministry had received the advice since late July, it waited until the contractor went public accusing Ministry’s officials of pressuring him for kickbacks. The contractor believes that his constant refusals to give gifts cost him the $468 million contract.

After denying that the Ministry was told of the demands for gifts, Transport Minister Robeson Benn changed his tune yesterday, during a press conference at his Kingston Office. The Minister admitted that the contractor had sent a letter to the Ministry making assertions that a Clerk of Works had requested a gift, possibly a minibus. He assured that the letter was forwarded to the Ministry’s Work Services Group for investigation.

Benn said, “I recollect now in hindsight that there was some letter, and that the Clerk of Works and some Engineers were very upset with the assertions that were being made, but we will investigate on all of these things.”

“I want to feel pretty sure that given the fractious relations that our Clerk of Works and Engineers have had with respect to this project, it (the termination of the contract) has nothing to do with any requests,” he added.

Benn has invited the contractor to present the long list of demands for bribes to either the Ministry or the police to have the matter dealt with condignly. He emphasized that the mere cancellation of a contract does not require aspersions.

“I have already instructed my people, the Permanent Secretary and the Work Services Group, to investigate the issues as it relates to the Ministry. I will invite an independent person, otherwise the Guyana Association of Professional Engineers. I will be making contact with them to pronounce on our actions and issues relating to the contract…the legal aspect and professional aspect,” the Minister said.

However, even with the instructions to investigate allegations at the Ministry, which involves staff, the Minister said, “Outside of any other issues with respect to professional, ethical or any other issue, I am standing by my engineers. The press is fully aware when I needed to make changes in this Ministry we have taken actions to improve, and we are improving.”

The Minister expressed his displeasure that the names of engineers who were involved in meetings were listed in the media.

“This is to sully their reputation and to get them involved in issues which would either be otherwise slander or libelous, because a long list of Ministry’s Work Services Group officials, engineers and other people at lower levels are mentioned, and somehow there will be guilt by association,” Benn added.

According to Benn, corruption allegations by the contractor are not the issue. In fact, he believes that the contractor made the allegations to hurt the image of the Ministry.

“It appears as though there were no problems until we cancelled the contract. It appears this Ministry is being damned if it does and damned if it doesn’t. I am not prepared to be damned here when I know we are making genuine efforts to improve and to deliver to the Government and people of Guyana good engineering projects.”

Millions of dollars in steel work has been left to the mercy of the elements as a result of the controversy.

Benn is adamant that fraudulent submissions and non-performance should be the focus.

He related that in April, a site visit showed numerous defects to the project and the contractor was asked to make corrections, but they were never done. But the fraudulent submissions of concrete testing results and purchase and provision of steel were the main bones of contention.

The Minister stressed that the contractor forged University of Guyana test result sheets and the signature of a Mr. Jackson. Explaining why a Ministry’s official signature was on the testing certificate, Benn stated that it was an acknowledgment of receipt and not the acceptance of the result.

With respect to non-performance, Benn said, “Significant portions of work have to be done. In spite of our supervisors and engineers rejecting work and saying they have to be reworked, we have been ignored.”

The contractor’s claim that Ministry’s equipment for testing the strength of concrete was malfunctioning was debunked. According to Benn, the Ministry’s lab equipment has always been functional and if there are issues with the equipment, the University of Guyana, LINMINE lab or any private laboratory could be used as alternatives.

Even with the extended problems the Ministry claims it has been having with the contractor, a total of $207M was spent on the project. Apparently, the advance payment on the bond was $140M.

“The works which were approved from April to June that relate to the issue were well short of the mobilization advance which he received, so the money was deductable with respect to it. So issues of balancing what he was advanced with respect to actual works done there were well behind…We couldn’t make additional payments given the fact that the mobilization advance itself wasn’t equal,” Benn stressed.

Painting a dim history of the contractor, Benn highlighted Guyana’s inefficiency in blacklisting defaulting contractors. “There is no specific procedure with respect to blacklisting contractors… he was prequalified, the lowest qualified tender.”

The Minister noted that this is not the first time the Ministry is encountering such a situation with the contractor. He revealed that in 2005 the contractor presented a fraudulent Certificate of Compliance purported to have been issued by the Guyana Revenue Authority. In addition, a sea defence contract was pulled from the contractor because of non-performance.

Benn disclosed that the Ministry of Agriculture is currently encountering performance issues with the contractor.

Meanwhile, in an invited comment, the contractor said that 80 percent of contractors are encountering similar problems, in relation to bribery demands, but are afraid to come forward for fear of victimization by the Ministry. He is suggesting that a Complaints Authority be established with persons of integrity to end the situation once and for all.

He said that he will be moving to the courts to seek payment for the approved work already done.

“A court action will obviously cost the Guyanese taxpayers a lot of money, but this is the way the government is spending it,” the contractor asserted.

I give credit to Benn if the allegations of fraud is true. If the kickback claims can be proven (recorded message etc) then I would say the PPP are the most notorious of criminals. Let the proving begin

iT IS AMAZING THAT WITH TECHNOLOGY THESE DAY, THESE CONTRACTORS CANT PROVIDE ANY EVIDENCE!!!Something to think about.

E.C.D four-lane extension… Gafoor’s authenticates invoices

The company supplying steel to the controversial contractor of a section of the East Coast Demerara four-lane expansion has authenticated several bills that were questioned by the Public Works Ministry.
This further supports the contractor’s claims that his transactions with the Ministry were above board, contrary to claims by the Ministry.

The stalled road works on the East Coast Demerara.

Recently, the contractor of Falcon Transportation and Construction Services, claimed that his contract was terminated because of his constant refusals to give bribes to Ministry officials.
The Ministry maintained that the termination was based on the fraudulent submissions of documents and non-performance by the contractor. The Ministry has since signaled its intentions approaching the police to investigate the matter.
In a press release the Ministry had said, “Five of 11 invoices submitted by the contractor from suppliers had blocked out invoice numbers and claims for the same items (steel) twice.” However, the Ministry never made checks with the company to confirm whether the invoices with blocked out numbers were authentic. In fact, in a cover letter attached to the invoices, The Manager of Gafsons Industries Limited, Parika branch, has since invited the Ministry to verify the receipts.
According to the Manager, Gafsons Industries Limited issued the invoices with blocked out numbers to the contractor. Without offering specific details, it was explained that the branch received the invoice books from the company’s head office with the blocked out numbers.
According to the contractor, “they (the Ministry) claimed that the invoices that I obtained from Gafoor were duplicated. But Gafoor gave an explanation for the appearances of the invoices. The Ministry could have easily verified it by just making a phone call or even contacting Gafoor, but they are too important to do that.”
He stated that the Ministry refused to acknowledge a document from Gafoors authenticating the bills.
According to the contractor, the same invoices were approved by the Guyana Revenue Authority (GRA) when he made claims for a refund of his Value Added Tax.
“These bills went to GRA and were checked…and I was refunded the VAT from it. It was accepted by GRA as authentic,” the contractor said.
It was on these perceived discrepancies that the Ministry wrote to the contractor informing him that his contract was terminated. He noted that it took the Ministry five months after they queried the discrepancies to terminate the contract.
The road works are ongoing between Montrose and Sparendaam.