Vice President Dr Bharrat Jagdeo has put public officials on notice that the government will be cracking down on those who use their positions and influence to steer contracts towards their companies, thereby abusing the procurement system.
During an outreach to Region Six (East Berbice-Corentyne) on Tuesday where he met with residents at the JC Chandisingh Secondary School in Port Mourant, the Vice President addressed issues concerning corruption in the public procurement system.
For instance, Jagdeo spoke out against certain families hogging the majority of contracts, while depriving others from benefitting. Nor is that the only thing the government is looking into, as he also issued a stark warning to any government employees using inside information to steer contracts to their own companies. Jagdeo stressed that even the appearance of such conflicts of interest must be avoided.
“The next thing is that we found the government who are working in government offices and who have a ton of contacts, especially if they’re working around the tender board in the region, they must not have companies and be competing with others. Because then they can violate the process. And I’m looking at that seriously.”
“I just had a serious meeting with the Regional Administration across there. And I’m going to have a serious meeting with the regional administration here now, to ensure that people are not steering contracts to themselves,” he said.
According to the Jagdeo, the government has no interest in defending anyone engaged in corrupt practices. Added to this is the fact that checks have revealed a large network of related contractors bidding for contracts.
“We’re not going to defend anyone for that sort of behavior, if it proves to be true. Because we have a bigger mission in this country, which is transforming it. And creating opportunities for all of our people and ensuring that our children have a future that is unbelievable. That was one of the reasons I wanted to gather you together because I get all sorts of (reports).”
“Whatever you tell me, I’ve been checking. I got them to check, of the 200 plus, 300 contractors in this region, you got 90 something with related companies… 90 something. We know. So, we’re checking it now. People are gonna get help. But don’t think you’re gonna get past this,” Jagdeo added.
Clampdown
It was only a few months ago that the Vice President announced a nationwide review of the procurement systems in a bid to clamp down on corrupt practices. Already, President Dr Irfaan Ali has informed his Cabinet Ministers about this review process and instructed them to ensure that their respective procurement systems, as well as payment systems, are examined.
This announcement came on the heels of the controversy earlier this year surrounding the award of an $865 million contract to Tepui Group, for the construction of a pump station at Belle Vue, West Bank Demerara (WBD).
According to Jagdeo, stringent measures against agencies deviating from standard bidding protocols will be put in place. This stern warning also followed some other controversy over the $2.1 Billion contract awarded to Kares Engineering Inc. for the construction of the Guyana Defence Force (GDF) Wharf.
The National Procurement and Tender Administration Board (NPTAB) had issued a statement clarifying the circumstances surrounding the contract award. The procurement process for the construction project involved a public tender where bids were evaluated independently, with Kares Engineering Inc. emerging as the lowest responsive bidder.
However, controversy arose when Correia & Correia Ltd. contested the decision in March 2024, citing outdated criteria in their bid review request. Jagdeo had dismissed these claims, however, underscoring that any deviation from the approved Standard Bidding Document could open doors to corruption within government agencies.
Dead region
Meanwhile, the Vice President – in addressing Berbicians – spoke about the significant investments the government has made in the region. Jagdeo referenced the major developments at Palmyra and the Moleson Creek to Palmyra 4-lane roadway, as well as the work being done on several community grounds. He noted that these initiatives, and more, will result in employment and other opportunities.
“You have 125 playgrounds, 62 we upgraded. This year they have $400 Million. I’m meeting the groups just now. And we’ll have another $400 Million to tackle the other grounds. Several are across the region, in New Amsterdam, almost all the grounds being done. That’s only in this area. There are so many other things that are going to be done.”
“Every contractor I speak with says we can’t find labour. So already, we started seeing some of those things. And I remember, four years ago, people didn’t have work. They didn’t have any work in this region. You remember GUYSUCO people were sent off. No money was circulating. This region was going down. Had it not been for PPP/c resuming office, this region would have been a dead region a dead region,” Jagdeo also explained.
The former A Partnership for National Unity/Alliance For Change (APNU/AFC) government, in office from 2015-2020, had downsized the sugar industry by closing the Wales Estate on the West Bank of Demerara and the Enmore Estate on the East Coast of Demerara.
But in one fell swoop, they had also closed the Skeldon and the Rose Hall Estates – both in Region Six (East Berbice-Corentyne) … decisions which not only went against the expert advice they received at the time, but also had a devastating effect on the village economy of the region.
