Dindyal mismanaged GPL projects – Brassington

– Board and CEO had major power struggle

Former GPL boss, Bharat Dindyal (l) was a poor manager, Board Chairman Winston Brassington (r) said in a report last year.

Days after Government announced that it has parted ways with the head of the Guyana Power and Light Inc. (GPL), an explosive report has laid bare the battle that was being waged within that state company.

Former Chief Executive Officer (CEO), Bharrat Dindyal, was reportedly a power by himself, clashing with the Board of Directors, and mismanaging the multi-billion-dollar projects the company had embarked on.

GPL Chairman Winston Brassington, in an evaluation report last December, recommended that Dindyal, a qualified engineer, not be rehired as CEO.
Dindyal had signaled his intentions to the Board of Directors that he wanted a renewal of his three-year contract despite earlier intentions to leave. He even asked for a US$1,500 increase, on top of his $6.1M monthly pay, as part of his arrangements to stay on as CEO.

It is now public knowledge that Dindyal, who was without a contract since January, was asked to leave last week by the new administration, after he had reportedly signaled his intentions to depart at the end of June.

The decision by the Government was hastened by the fact that the former CEO was caught on camera, in a confrontation with the Deputy CEO, Colin Welch, using expletives over the suspension of two managers for wrongdoing.

Dindyal was heard on the video telling the staffers of the Loss Reduction Department that they should ignore Welch and remain on the job.

What apparently offended the administration was he insisted that the “f%&king minister” (David Patterson) should call him on the matter.

The government’s decision to part ways with Dindyal was seen by the Opposition as discriminatory and a witch-hunt of officials who were seen as supporters of the previous government, but the report would signal a different scenario altogether.

In the explosive evaluation of Dindyal by Brassington, which asked former Prime Minister Samuel Hinds not to entertain the request to stay on as CEO, the executive was painted as an arrogant man who disregarded the Board of Directors, not even reporting to them on key projects.

10 GENERATORS
His poor management style led to the write-off of at least 10 generator sets and hundreds of millions of dollars in additional monies being spent to fund projects, like the 26 megawatts Vreed-en-Hoop power station facility.
Dindyal failed to return with a project summary of the Vreed-en-Hoop project, which foundation costs ballooned from $483M to $1B.

The report by Brassington was dated December 22, 2014, weeks after the CEO wrote the former PM to renew his contract.

“The board considered the matter and does not support a renewal of Mr Dindyal’s contract,” Brassington said in his evaluation letter to Hinds.

The report on Dindyal would be the first public disclosure of the power struggle within GPL which has come under fire for years now for spates of blackouts, high tariffs and costly projects that just could not reduce the amount of electricity theft that has been causing losses.

Brassington’s appraisal by his board covered the period 2012-2014. Dindyal was hired as CEO in 2006 after Robin Singh left.

Among other things, the former CEO “treated the board with disrespect, refusing to carry out instructions or decisions of the board and instructing management to ignore board decisions.”

He failed to report to the board on a routine basis – in fact not submitting monthly reports or even major reports on key matters for decision.
Brassington claimed that the Board was left in the dark on how well projects were being implemented.

AUTOCRATIC AND AD HOC
As a matter of fact, Dindyal told the directors to leave him to do his work, as there was no technically competent person there to instruct him. He even told this to the former Cabinet of Ministers under the People’s Progressive Party/Civic (PPP/C).

“The CEO’s style of management has been autocratic and ad hoc leading at times to an almost dysfunctional level of organization,” the 25-odd-page evaluation report said.

Dindyal’s style of management caused former Director of Operations, Elwyn Marshall, to resign with Colin Singh, Director of Projects/Operations, also being unhappy.

Even Welch, who was brought to GPL and is now the acting CEO, reportedly also felt that Dindyal’s style was too overpowering.

The Deputy CEO of Administration, Ash Deonarine, who has been sent on leave pending an investigation over a $27M backpay he took for himself, had expressed concerns that he was targeted. Last year he resigned, but was asked to stay on.

According to Brassington, Deonarine claimed that Dindyal threatened to replace him. “It appeared that the (former) CEO was seeking to encourage the exit of the DCEO as he was feeling threatened.”

Brassington believed that the former CEO’s problems were because he was trained as an engineer and not as a manager. As a result, his style was more of an operator than a manager.

Brassington also blamed Dindyal for the majority of the woes facing GPL.
With more than US$150M invested over the last eight years, Dindyal’s management lacked modern techniques including planning, project management and team approach.

Rather, he preferred the technical stance over the managerial ones.
There was poor planning on the Transmission and Distribution network projects, with huge cost overruns, Brassington said.

Despite the billions invested in prepaid and Itron meters, on new power stations, including the ones at Vreed-en-Hoop, Bartica and Anna Regina, there was evidence of little thought being placed in the preparation of proper project planning. This led to cost overruns and delays on the projects.

A Canefield, West Berbice generator was over-budgeted and had collapsed, compounding the blackout situation in Berbice.

RENTALS
Dindyal’s management of GPL’s assets also forced the company to shell out millions to rent Caterpillar engines, with customers also being forced to wait on explanations over what caused shutdowns.

Brassington, also in the report, said that the former CEO’s remuneration was based on comparable rates being paid to CDC/ESBI, a former partner of GPL.

The Chairman also pointed out that the previous administration had been forced to intervene when relations were tumultuous between Dindyal and the Board of Directors

He was rated 21 out of 50 by the Board for his leadership, and for his personal and professional behaviour.

Brassington even accused the former CEO of openly challenging the Board in the presence of employees and not treating with urgency reports requested on the implementation of matters.

Dindyal was supposed to give six months notice to renew his contract but he did not, Brassington said.

The Board, on its scorecard, gave Dindyal 9.5 out of the 15 percent; 21 percent of 50 percent for his operational direction, business performance and planning; 7 out of 20 percent for management and human resource – and six out of 15 percent for  governance and reporting.

The report would raise troubling questions why the previous PPP Government did nothing even after the Board recommended that Dindyal be sent off.