September 17, 2016 Source

…leads to sole sourcing skyrocketing by 850%

… demands for tender box keys lead to request

for dismissal

Managing Director of the Guyana Water Incorporated (GWI) Inc, Dr Richard Van West-Charles, has dismantled not only the morale of the senior staff of the utility company, but has also begun employing several unsavoury practices previously utilised by several ousted executives.

Dr Richard Van West-Charles

Guyana Times is in possession of a series of internal correspondences between executives of GWI documenting the litany of infractions by Dr Van West-Charles.

These include the dismantling of the entity’s procurement department, which has led to sole sourcing being ordered more and more by the Managing Director – skyrocketing by as much as 850 per cent during his tenure.

Guyana Times understands that the mounting concerns have since led to a motion being taken before the entity’s board of directors, calling for his immediate removal in order to make way for a comprehensive audit of his actions.

Sole sourcing

On the matter of the dismantling of the Procurement Department, one such internal correspondence seen by Guyana Times was prepared by the department’s former director.

In that correspondence, it was pointed out that while the GWI financial regulations make provisions for sole sourcing in cases of emergency or national disaster, among other considerations, the correct procedure, “has been skipped in recent times since suppliers and service providers are being engaged by persons outside of the procurement department and at times without a firm price being agreed.”

It was pointed out to the GWI Board that when the invoices are issued, procurement then seeks the Management Tender Board’s approval to prepare a contract or Purchase Order (PO) by the direct contracting method, since it would be unfair to seek quotes for works already completed or in process.

“You would recall that these cases grew sharply from one or two per month to as many as seventeen in July 2016… This approach is very demotivating for the procurement team as they are aware that at some time, questions will be raised about these practices by stakeholders and even suppliers who may be seeing works in progress that they were not given an opportunity to bid for,” a correspondence seen stated.

Procurement merger

Guyana Times understands that in July last, when the then procurement director returned from leave, it was found that the department had in fact been restructured and merged with the Finance Department, a situation which inherently brings with it a new reporting and supervisory structure.

This was brought to the attention of the GWI board of directors, since the operational changes will create significant challenges to GWI and its capital programme which includes dozens of procurement activities including the re-tendering of the three Water Treatment Plants funded by the Inter-American Development Bank (IDB).

The GWI Board was also informed that “some purchase decisions are being made without the opportunity for requests for multiple quotes and public tender where the threshold requires same due to the emergency nature of the requests…There is less planning of activities to allow time for the procurement of services or works using the correct procedures.”

According to the internal correspondences, extra budgetary expenditures have been conducted which creates delay in payment since the expenditure was not planned.

“These include new departments, offices, furniture, staff, safety gears, consultants, meals, water delivery, etc.”

It was also pointed out that there have been several annulments of tenders for the office extension, well construction, building repairs and vehicle purchases at the end of the procurement process which “demotivates the staff and signals to supplier that we are not serious.”

Guyana Times understands that GWI’s board of directors recently voted to reinstate the Procurement Department.

According to the complaint lodged with the GWI Board, the merger with the finance department “is a return to a period that had many pitfalls which resulted in the dismissal of the entire purchasing team in 2005.”

It was pointed out too that the entity’s managing director, “Dr Richard Van West-Charles has on many occasions authorised provision of goods and services to GWI without competitive quotes and by officers outside of procurement.”

These include the procurement of health and safety gears from VSH United for electricians based on a verbal request and without a Purchase Order; the procurement of AC units without a PO; procurement of office furniture for several offices without a PO; construction of car park and repairs to the drainage and road shoulders without a contract and water delivery to affected areas without a contract, amounting to several millions of dollars.

One supplier was reportedly providing four trucks and that supplier was not pre-qualified prior for providing the transportation service to GWI.

Guyana Times was told that the department was subsequently requested to make contracts and POs, after the works were completed, using the direct contracting method and that this practice is a deviation from protocol.

Tender box keys

This publication was also told, and have since corroborated that the GWI managing director has also been in the habit of demanding the keys to the tender boxes, which houses bids from suppliers, in contravention of the entity’s procurement rules.

One such correspondence was penned by a senior officer, and documents instances where Dr Van West-Charles has repeatedly made demands for the keys to access the tender box despite being told that he had no authority to be in possession of those keys.

This unsavoury practice, Guyana Times was told did not sit well with senior executives of GWI who have since called for his dismissal