Massive corruption in award of US$18M Specialty Hospital contract
November 27, 2015 By GuyanaTimes
Public Security Minister Khemraj Ramjattan Public Security Minister Khemraj Ramjattan Lack of transparency – says Opposition Leader – Ramjattan at helm of scandal BY ALEXIS RODNEY Public Security Minister Khemraj Ramjattan has come under intense pressure and the situation promises to heat up even more, following the announcement by the David Granger-led A Partnership for National Unity/Alliance for Change (APNU/AFC) Government, that it has contracted Indian Company Fedders Lloyd to continue the construction of the controversial Specialty Hospital. The situation is troubling, not just because Government has back pedalled on the stance it took against the building of the State of the Art facility, but because the contractor, to whom the project has been given, is closely connected to Minister Ramjattan. Opposition Leader Bharrat Jagdeo Opposition Leader Bharrat Jagdeo Concerns have already begun mounting following Government’s announcement on Wednesday that it had signed a Memorandum of Understanding (MoU) with the Indian company, which had lost the bid to Surrendra Engineering Company back in 2011. The MoU was signed on Wednesday between Finance Minister Winston Jordan and a representative of the company, Ajay Jha. This now paves the way for works to restart the construction of the Hospital. But the now Public Security Minister is facing severe criticisms and there are talks that the move is an “underhand” one, particularly because there was no tendering process for the project. The sudden move by Government to use the company without giving any other construction company a fighting chance at the tendering process has raised eyebrows. During the tenth Parliament, Ramjattan was almost hauled before the Committee of Privileges on the charge of failing to declare pecuniary interests in matters debated in the National Assembly. Ramjattan was said to be in a “conflict of interest” position over his legal representation of the Fedders Lloyd Corporation, which he then believed, was cheated of the contract to build the Specialty Hospital. Finance Minister Winston Jordan and Fedders Lloyd’s representative Ajay Jha during the signing of the Memorandum of Understanding (MOU) for the construction of the Specialty Hospital Finance Minister Winston Jordan and Fedders Lloyd’s representative Ajay Jha during the signing of the Memorandum of Understanding (MOU) for the construction of the Specialty Hospital His role as lawyer for the Indian firm had long been questioned by the then PPP/C Government. It was believed that the then AFC Leader had political rather than legitimate motives for objecting to the US$18.1 million contract for the design and construction of the hospital which was awarded to Surendra Engineering company. The PPP/C believed that Ramjattan had acted in contravention of Standing Order 107 which states that “No Member of the Assembly shall appear before the Assembly or any Committee thereof as Counsel or Solicitor for any party, or in any capacity for which he or she is to receive a fee or reward.” Meanwhile, Opposition leader Bharrat Jagdeo on Thursday said that the new agreement between Government and the Indian company “reeks of corruption”, as it serves the interest of its own. According to him, a single source company could not be awarded a contract that is $18 million. “How could you ask the person that is making the proposal to you to do the assessment of work done. The proper thing to do was to seek the independent assessment by a consultancy firm of work that has been done before, do new bills of quantity and then go out to tender”, the Opposition said. According to the MoU, Fedders Lloyd will review the works already started, conclude a design of the hospital that is acceptable to the Government, and commit to fully equip the facility on completion of its construction. The company also undertakes to commence work on the facility immediately following the signing of the MoU. The Specialty Hospital, a project initiated by the People’s Progressive Party/Civic (PPP/C) Administration, is aimed at catering for complicated surgeries, ranging from heart operations, organ transplants to cosmetic surgeries. In 2012, a US$18 million contract was awarded to India-based company Surendra Engineering, which was tasked with designing and building the controversial facility. The funding was provided by the Indian Government through a Line of Credit (LOC). The current Administration, which was on the Opposition side of the National Assembly during the 10th Parliament, had heavily criticised the project. The coalition had even cut the $1.25 billion that was budgeted for the Hospital in 2013. The previous Administration had only received $34.4 million as supplementary funding for the hospital in the 10th Parliament as a result of the absence of APNU Member of Parliament (MP) Volda Lawrence, when a vote had been taken for the funds. The previous Administration was hoping that the hospital would be a pull factor to bring tourists and overseas-based Guyanese back to Guyana for “health tourism”. However, the new Administration had said with the current state of affairs in the health sector, it was better that the construction of the Specialty Hospital be put on the ‘backburner’ and the money used to enhance the primary health care system. Government had requested the EXIM (Export, Import) Bank of India to cancel the LOC for the Specialty Hospital and to reallocate the balance of funds to a project to modernise three primary healthcare facilities – Bartica, Suddie and West Demerara Hospitals. However, the Government of India while indicating that it had no objection and support for the modernisation of primary healthcare facilities, suggested that Government should consider salvaging the Specialty Hospital as it will complement primary healthcare facilities in Guyana.
Ramjattan legal representation of Indian hospital bidder not an issue
-Hughes