Regardless of the corruption involved in getting this project off the ground, it appears that the afc/apnu has finally come to their senses and fell in line behind the PPP. Now the question is, who will travel to Guyana for treatment from this hospital?
Former Member
Originally Posted by Django:
August 30, 2012
The AFC yesterday played down concerns that party leader Khemraj Ramjattan is in a conflict of interest position over his legal representation of the Fedders Lloyd Corporation, which believes it was cheated of a contract to build the specialty hospital at Turkeyen.
Ramjattan’s role as lawyer for the Indian firm has been greeted with accusations by the government that the company and the AFC leader have political rather than legitimate motives for objecting to the US$18.1 million contract for the design and construction of the hospital being awarded to Surendra Engineering.
Speaking at the AFC’s weekly press conference, party Chairman Nigel Hughes urged Guyanese not to be distracted by personality, but focus on whether Fedders Lloyd’s rights were breached. Ramjattan is currently out of the country on business.
“The real issue is whether or not the procedures that were set out in the tender documents were adhered to. There is no rule in the profession that stops Mr. Ramjattan, who is a practising attorney, from plying his trade as a lawyer,” Hughes told the news conference.
Hughes, who is also a practising lawyer, assured that Ramjattan’s position on behalf of the AFC represents the party. He reiterated that the party leader’s position is consistent with his professional stance as far as fairness and transparency are concerned.
The AFC Chairman said he would expect the contract to be awarded on the basis of merit. “If awarded the contract, I would assume and hope that it is after a very transparent process of retendering, where everyone who has been invited to tender and the process of evaluation is transparent,” he said.
Hughes added that if the company performs badly, it would be Ramjattan the attorney and not the AFC leader who would have to represent his client to disprove that the company was liable for any acts of commission or breach of contract. “It’s certainly not the AFC’s position that Fedders Lloyd must get the contract. What we are saying is that the process was flawed and Guyana, as a country,
Nigel Hughes
cannot be inviting international tenders to build anything and then by our own act breach the same rules and regulations that we have invited them to come and tender under,” Hughes added.
The government has accused Fedders Lloyd of orchestrating a campaign against the work of the NPTAB committee that awarded the contract to Surendra Engineering and of “politicisising” the situation after the rejection of its bid.
Fedders Lloyd’s grounds for objection included Surendra Engineering’s bid security being issued by a bank in India rather than by a locally-based commercial bank.
The Guyana government on Tuesday, however, said the decision to use only banks in India was taken and made known to prospective bidders at a pre-bid meeting, where Fedders Lloyd was represented and for which minutes were subsequently circulated. That decision, government says, supersedes any other conditions laid down.
A National Procurement and Tender Board Administration (NPTAB) executive told Stabroek News that the issue of the bid bond lies in the tender documents specifications. The source said that this is not the first time that a bond was issued from a foreign bank, since with most foreign funded loans, which have international bidders, bonds are issued. Fedders Lloyd also questioned Surendra Engineering’s apparent lack of technical expertise in building such facilities.
Fedders-Lloyd plans to formally protest to the NPTAB the awarding of the contract to Surendra Engineering. The former company also intends to file similar objections with India’s EXIM Bank, which is responsible for the line of credit provided by the Indian government for the construction of the hospital.
Thanks Django.
Former Member
Originally Posted by Mitwah:
Was Fedders Lloyd the lowest bidder and has experience constructing Specialty Hospitals and that the PPP/C, like the Skeldon Factory, ignored prudence and offered Surendra, who never constructed a hospital, the bid?.
Has The APNU+AFC new administration received from the Indian Govt the remainder of the original balance to refurbish three primary hospitals, and an additional $14 million USD to construct the Specialty Hospital?
Where is the massive corruption?
Regardless of what happened under the PPP government. The signing of this new agreement does not satisfy the same protocols the current government especially the AFC while in opposition. While this agreement may still turn out to be a beneficial one, the current government actions of supervening norms and expectations are disconcerting.
Joint Press Statement by Ministry of Finance and Fedders Lloyd
MOU signed between Government of Guyana and Fedders Lloyd to build and equip Specialty Hospital.
Minister of Finance, Honourable Winston Jordan today signed a Memorandum of Understanding (MOU) with Fedders Lloyd that will see works restarting on the construction of the Specialty Hospital.
Fedders Lloyd in entering this MOU with the Government of Guyana (GOG) will review the works already started; conclude a design of the Hospital that is acceptable to the GOG; and commit to fully equip the facility on completion of its construction. Fedders Lloyd also undertakes to commence work on the facility immediately following the signing of the MOU.
Work on the Specialty Hospital was halted after allegations of impropriety and fraud were leveled against the contractor who won the bid for its construction in 2012.
The then government terminated the contract and proceeded to Court to seek remedies. The Court ruled in favour of Government and the construction of the facility came to a standstill. The future of the Line of Credit (LOC) was threatened.
Following the APNU+AFC government’s accession to office, it reviewed the project and concluded that since there was no existing contract that could be enforced, it was impractical to continue to keep the LOC in its existing form, especially since it was attracting commitment fees.
Government therefore requested EXIM Bank of India to cancel the LOC for the Specialty Hospital and to reallocate the balance of funds to a project to modernize three Primary Healthcare Facilities.
However, the Government of India (GOI) in its response, while indicating its no objection and support for the modernization of Primary Healthcare Facilities suggested that GOG should consider salvaging the Specialty Hospital, as it will complement primary healthcare facilities in Guyana.
GOG having examined the merits of the proposal began searching for a willing partner to complete the Specialty Hospital using the remainder of the LOC.
In the interest of time, Government approached Fedders Lloyd – one of the original bidders –to explore the possibility of them completing the project. Fedders Lloyd expressed continued interest and was prepared to complete and fully equip the facility.
At a simple signing today, Minister Jordan said, “The signing of the MOU represents a tangible expression of Fedders Lloyd interest and commitment to move the project forward.”
He added that, “The MOU is also testament to Government’s commitment to advancing health care delivery in Guyana.”
He also restated the Government of India’s approval of an additional LOC for the upgrade and modernizing of Suddie and Bartica hospitals and the West Demerara Regional Hospital.
Signing on behalf of Fedders Lloyd was Mr. Ajay Jha.
He thanked the GOG for the opportunity to work on the project, but more especially, to work Guyana.
He further remarked that, “The Specialty hospital will be a model not only for Guyana but the rest of the Caribbean.”
The Specialty Hospital is intended to cater for high risk surgeries and other health care demands.
Former Member
Originally Posted by Drugb:
Regardless of the corruption involved in getting this project off the ground, it appears that the afc/apnu has finally come to their senses and fell in line behind the PPP. Now the question is, who will travel to Guyana for treatment from this hospital?
Correct. The PNC/AFC has no real and viable vision. Now they are in power, the much hated PPP projects make a lot of sense.
Former Member
Originally Posted by Bibi Haniffa:
Vish M - it is a conflict of interest. And if the PPP had done this you all would be hollering - Thief! Thief!
THere is no conflict of interest given guyana has no firewall between personal business and official duties. Anil Nandalal is the attorney on record for Guyana Goldfields...Romatar Aquatted on OMAI's board.
This project should be re-tendered. Any excuse by the finance Minister is just pure obfuscation because they decide they can skirt the rules. No rationale exists to hand this project over to the F&L unless they are claiming that since the first bidder defaulted the second in line comes on stream. However they did not say this except they took the formal PPP position that they are in god mode and knows what is best.
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Ramjattan legal representation of Indian hospital bidder not an issue
-Hughes