Then MARAD Director-General, others relieved of duties over contract award; contractor asked to repay monies- Public Accounts Committee hears

Last Updated on Tuesday, 17 October 2023, 22:38 by Denis Chabrol

The bipartisan Public Accounts Committee (PAC) of Guyana’s National Assembly was Monday informed that a number of then officials of the Maritime Administration (MARAD) were relieved of their duties for allegedly not abiding by the procurement rules that had led to the variation in the award of multi-million-dollar contracts.

Government parliamentarian Dharamkumar Seeraj and his opposition counterpart, Ganesh Mahipaul questioned the acquisition of spares on March 28, 2019 for GY$351.3 million but was subsequently varied to GY$400.2 million. Mr Seeraj asked Permanent Secretary, Vladim Persaud why there was no retendering for “a better deal if the process was more competitive.”

Mr Persaud said the contract of the then Director General of MARAD Claudette Rogers was “terminated” and “those who were found culpable were relieved of their duties” because of several breaches in the award of the contract. The Permanent Secretary said the alleged irregularity was discovered in 2021 after the Public Works Ministry had asked the Auditor General to conduct a forensic audit.

Since then, Mr Persaud said since then internal controls and contract management have since been strengthened for MARAD’s procurement of spare parts. He added that Standard Operating Procedures and more qualified personnel for the accounting and procurement departments have been put in place for the review of major contracts to ensure compliance.

The Permanent Secretary told the PAC that the Attorney General’s Chambers has since approved an agreement for the contractor, Brenco Shipping and Trading- a subsidiary of Courtney Benn Contracting Services, which has several other projects, to repay monies and deliver outstanding items. “We have agreements which allows for this contractor- that he has a time period either to complete repayment of those funds that were overpaid and for items which were not delivered under this particular contract,” Mr Persaud.

Meanwhile, Mr Mahipaul said it was “shocking” that Ms Rogers had been disciplined and then employed as an advisor.

Finance Secretary Sukrishnalall Pasha recommended that a procurement manual be developed, with approval by the Public Procurement Commission to suit the special needs of entities.

Government parliamentarian, Dr Vishwa Mahadeo asked that the PAC consider further investigations because the termination of employment was insufficient punishment. “I think this is a good example of how things should not be done in public office,” he said.

PAC Chairman, Jermaine Figueira asked Auditor General Deodat Sharma to provide a copy of the forensic audit report on the award of that contract to Brenco Shipping.

According to the PAC Chairman, court action should have been taken,  and he welcomed the stringent measures that have been put in place by the Permanent Secretary. “Definitely, it is a mind-boggling occurrence that should not have happened,” he said.