Gov’t pays BK Int’l $74M more than his bid price – Company bid $278M, but contract signed for $352M

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Former Member

By Mikaila Prince

Despite being the highest bidder for a project awarded last week by the National Procurement and Tender Administration Board (NPTAB), Brian Tiwari’s BK International Incorporated was, nonetheless, awarded a contract to the tune of $352M, some $74M more than its already relative high bid offer.

A copy of the contract awarded by NPTAB last week.

In a previous article, Kaieteur News had highlighted that NPTAB, and by extension the Ministry of Finance, had awarded a contract to construct rip-rap sea defences at Content, Mahaicony in Region Five, following massive floods within the district late last year.
BK International was one of the three companies who bid to secure the contract; the other two companies being MB Construction who bid $235,744,500 and Colin Talbot Contracting Services who submitted a bid of $247,599,600, while the engineer’s estimate was $184,521,000. BK’s bid was $278,876,300 – some $31M over the next highest bid and more than $90M over the engineer’s estimate.
Notably, procurement laws stipulate that when it comes to large scale contracts like the one BK was granted, the National Procurement and Tender Administration Board is recommended to choose the lowest bidder. Despite being the highest bidder for the contract, with a significant margin between what BK International bid and what was asked for by the engineer, the company was still awarded the contract. This decision in itself raises concerns, taking into consideration that Cabinet is needed to approve these multi-million dollar contracts and that constitutional body fell with the dissolution of Parliament in December of last year.
Even with the unusual decision by NPTAB to award to the highest bidder, the award letter for this contract shows BK being granted the contract at a price of $352,121,250.
Upon noticing the significance variance with what was asked for by the company and what was awarded to them by the government, Kaieteur News reached out to the Deputy Chairman of NPTAB, Mark Bender. In an email that was dispatched to Bender yesterday afternoon, Kaieteur News requested an explanation for the inconsistencies with the costs. However, up to press time, there was no response.

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Replies sorted oldest to newest

Ramakant-PSenior Member

The Government officials received a $74 million back under the table.

Go figure!

6/25/208:52 AM

Former Member

Not to worry. That contract will be scrapped by the incoming PPP/C administration. BK used the previous PPP/C government and didn't waste time to use APNU+AFC too. In fact he used Guyanese taxpayers without scruples.

6/25/208:56 AM

Former Member

Jail the owner. He and Lolofeel can share the same bed at Mazaruni.

6/25/208:58 AM

Ramakant-PSenior Member

@Former Member posted:
Not to worry. That contract will be scrapped by the incoming PPP/C administration. BK used the previous PPP/C government and didn't waste time to use APNU+AFC too. In fact he used Guyanese taxpayers without scruples.

The contract is binding. It wouldn't be easy to scrap it.

6/26/208:44 AM

Former Member

@Ramakant-P posted:
The contract is binding. It wouldn't be easy to scrap it.

True. The new government will have to pay a penalty to break it. But common sense dictates that it's a better option than going along with the full cost of $352M. By the way, BK will call for more than $352M before completion of the project, citing unforeseen additional expenses. Many contractors do that.

6/26/209:57 AM

Ramakant-PSenior Member

@Former Member posted:
True. The new government will have to pay a penalty to break it. But common sense dictates that it's a better option than going along with the full cost of $352M. By the way, BK will call for more than $352M before completion of the project, citing unforeseen additional expenses. Many contractors do that.

Is that the scary version?

6/26/209:58 AM

Former Member

@Former Member posted:
True. The new government will have to pay a penalty to break it. But common sense dictates that it's a better option than going along with the full cost of $352M. By the way, BK will call for more than $352M before completion of the project, citing unforeseen additional expenses. Many contractors do that.

Don't pay them a penny more. If they refuse to complete the project, sue them, if the contract is binding.

6/26/209:59 AM

MitwahSenior Member

@Former Member posted:
Not to worry. That contract will be scrapped by the incoming PPP/C administration. BK used the previous PPP/C government and didn't waste time to use APNU+AFC too. In fact he used Guyanese taxpayers without scruples.

Not gonna happen. BK has both the PNC and PPP in his back pocket.

6/26/2010:01 AM

Ramakant-PSenior Member

@Former Member posted:
Don't pay them a penny more. If they refuse to complete the project, sue them, if the contract is binding.

Some companies like to bid low and halfway through the project, they claimed to have run out of money and then resort to blackmail.

6/26/2010:03 AM

Sheik101Senior Member

@Former Member posted:
Not to worry. That contract will be scrapped by the incoming PPP/C administration. BK used the previous PPP/C government and didn't waste time to use APNU+AFC too. In fact he used Guyanese taxpayers without scruples.

Brian is a business man and an opportunist. He likes to hang his mouth where the soup is leaking. No surprise there.

6/26/2010:03 AM

Former Member

@Sheik101 posted:
Brian is a business man and an opportunist. He likes to hang his mouth where the soup is leaking. No surprise there.

I think he has burned his bridges with the PPP. He might try to get in through some mushroom company, but I think he is done.

6/26/2010:05 AM

Ramakant-PSenior Member

@Former Member posted:
I think he has burned his bridges with the PPP. He might try to get in through some mushroom company, but I think he is done.

He is in to make money. That's business.

6/26/2010:14 AM

Sheik101Senior Member

@Former Member posted:
I think he has burned his bridges with the PPP. He might try to get in through some mushroom company, but I think he is done.

Should the PPP win, he'll more that likely want to be back in their fold. A little small piece here and there could facilitate that. Or maybe not.

6/26/2010:26 AM

Billy Ram BalgobinBilly

Is this guy part of that Oligarchy that the GNI Labba spoke about many moons ago? The Labba was expected to be the finance minister but the Burnhamites overpowered the AFC and installed their boy, Winston Jordan. Would the Labba would have tolerated such corruption had he become the minister?

6/26/2010:40 AM

Former Member

@Billy Ram Balgobin posted:
Is this guy part of that Oligarchy that the GNI Labba spoke about many moons ago? The Labba was expected to be the finance minister but the Burnhamites overpowered the AFC and installed their boy, Winston Jordan. Would the Labba would have tolerated such corruption had he become the minister?

Labba is satisfied being a part-time professah and full time cane juice and barra vendor.

6/26/2010:43 AM

DjangoAdmin

Any one knows how BK became a Billionaire ?

6/26/2010:45 AM

Former Member

@Sheik101 posted:
Should the PPP win, he'll more that likely want to be back in their fold. A little small piece here and there could facilitate that. Or maybe not.

I pray and hope this doesn't happen. It will give the PNC ammunition to level accusations of corruption and fraud against the PPP, even they blatantly did it. This would put a final nail in PPP's coffin. They will need to be transparent and honest with the Guyanese population.

6/26/2010:46 AM

Former Member

@Django posted:
Any one knows how BK became a Billionaire ?

Like the rest of them rich Guyanese: bribery and friend in high places.

6/26/2010:48 AM

DjangoAdmin

@Former Member posted:
Like the rest of them rich Guyanese: bribery and friend in high places.

More detail.

6/26/2010:50 AM

Former Member

@Django posted:
More detail.

I can't go through every rich man in Guyana and describe in detail how each one got rich. It happens under both PPP and PNC. I notice this when the people were selling contraband during Forbes, Hoyte, Jagan, and Jagdeo regimes. Blame PNC for starting this by choking the coolies.

6/26/2011:13 AM

Former Member

@Django posted:
More detail.

You remind me of the time I was a teacher. I already knew answers to questions that I asked my pupils. I just wanted to see who did their homework.

Likewise you already know how BK became a billionaire. But you friken fo seh PPP mek he filthy rich.

Well, on my honor I can say it's true and it started in 1993 with da ministah HPN. But when Donald Ramotar was President they got fed up with BK's greed and substandard projects, most notably the new Supenaam stelling. By 2015 PPP/C didn't want to see BK's best bone.

6/26/2011:56 AM

Ramakant-PSenior Member

@Mitwah posted:
Not gonna happen. BK has both the PNC and PPP in his back pocket.

Blackmailers don't last long.

6/26/2012:06 PM

DjangoAdmin

@Former Member posted:
You remind me of the time I was a teacher. I already knew answers to questions that I asked my pupils. I just wanted to see who did their homework.
Likewise you already know how BK became a billionaire. But you friken fo seh PPP mek he filthy rich.
Well, on my honor I can say it's true and it started in 1993 with da ministah HPN. But when Donald Ramotar was President they got fed up with BK's greed and substandard projects, most notably the new Supenaam stelling. By 2015 PPP/C didn't want to see BK's best bone.

Cheddi Jagan fired the person ,who was the enabler for BK to become rich.

Nuff...nuff ..things Django knows ,got some good old timers as friends.

6/26/2012:07 PM

TolaSenior Member

@Former Member posted:
You remind me of the time I was a teacher. I already knew answers to questions that I asked my pupils. I just wanted to see who did their homework.
Likewise you already know how BK became a billionaire. But you friken fo seh PPP mek he filthy rich.
Well, on my honor I can say it's true and it started in 1993 with da ministah HPN. But when Donald Ramotar was President they got fed up with BK's greed and substandard projects, most notably the new Supenaam stelling. By 2015 PPP/C didn't want to see BK's best bone.

I photographed that selling before it was opened. Immediately after it was opened, the deck gave way from the weight of trucks and the ramp never did work right. This created a huge problem for farmers transporting their rice.

6/26/2012:17 PM

Former Member

@Django posted:
Cheddi Jagan fired the person ,who was the enabler for BK to become rich.
Nuff...nuff ..things Django knows ,got some good old timers as friends.

Yuh is a bright boy. 😁

6/26/2012:21 PM

Former Member

@Django posted:
Any one knows how BK became a Billionaire ?

BK company was in operation since around the late 1970's and has been engaged with the construction of various projects in Guyana.

6/26/202:21 PM

DjangoAdmin

@Former Member posted:
BK company was in operation since around the late 1970's and has been engaged with the construction of various projects in Guyana.

Never heard about that .

https://www.bkincgy.com/about-us/company-profile/

Link to company Profile ,also B.T born around 1958.

6/26/202:24 PM

seignetSenior Member

@Django posted:
Any one knows how BK became a Billionaire ?

Cheddie was his bank.

6/26/202:36 PM

seignetSenior Member

@Django posted:
Cheddi Jagan fired the person ,who was the enabler for BK to become rich.
Nuff...nuff ..things Django knows ,got some good old timers as friends.

He never fired HPN.

The fella got fired because he facilitated the sale of a government bank which had far more deposits/revenues than what it was sold for.

BK provided a much needed service which non existed in Guyana in 1992. The PPP financed him with advance payments for projects. Most companies needed to have cash but not BK, the PPP was his bank.

6/26/202:49 PM