Archives for September 17, 2016

…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

Moments after brutally chopping his wife and mother-in-law at Naamryck, Parika, East Bank Essequibo, a rejected husband ended his life by consuming a poisonous substance.

Dead is Sewsarran Sankumar, 55, formerly of Venezuela and of Parika.

Injured mother-in-law, Rookmin

Dead: Sewsarran Sankumar

Injured wife, Savitree Sankumar

His mother-in-law, Rookin was reported chopped three times to her neck and was admitted at the West Demerara Regional Hospital while her daughter, Savitree Sankumar was transferred to the Georgetown Public Hospital. One of her hands was almost severed and she also sustained several stabs. She remains in a stable condition after a successful surgery on Friday morning.

Reports are the husband and wife lived in Venezuela after getting married but due to his abusive behaviour, the couple separated about three years ago. The woman returned to Guyana in December 2015 and lived at her parent’s home. This newspaper was told that in March her estranged husband also returned to Guyana and has been tormenting her since.

Speaking with Guyana Times the woman’s sister explained that the dead man had threatened to kill her sister and other family members. A Police report was made and he was arrested and charged. She explained that he was convicted and spent six weeks in prison however, after he was released, he continued with his threats.

“The same night he came out, he went to we house in Naamryck and tried to come into the house but we wake up and as we raised an alarm, he escaped.” The sister, Rajnie further explained that after he continued with the threats, they went back to the Police and lodged another report.

He was subsequently arrested and placed the court for the second time. This time, he was granted bail and was placed on a bond to keep the peace. Her sister, she noted, took out a restraining order so as to prevent him from going within proximity of her.

The sister explained that she is currently renovating her home and was staying at her mother’s house.

According to the woman, on Thursday at about 12:00h, the now dead man removed a few louver panes from the window, entered the house and hid until her mother and sister returned home.

“After he got in the house…he had to wait for some time because my mother had someone doing some work in the yard… After the man left, he pounced on my mother from behind and started to chop… after chopping my mother, he turned the cutlass on my sister and almost chop off one of her hands but she put up a fight,” she related.

During the scuffle the man dropped the cutlass and ran out of the house. It was at that time that her sister was able to raise an alarm and neighbours rushed to the scene. They were taken to the Leonora Cottage Hospital but transferred to the West Demerara Regional Hospital.

The Police were summoned and the suspect was found under his brother’s house, a village away. Next to him was the bottle that contained the poisonous substance. He was rushed to the Leonora Hospital and he too was referred to the West Demerara Hospital where he later succumbed.

The cutlass and knife used were handed over to Police. (Bhisham Mohamed)

…a sad day for taxpayers but no use crying over spilt milk – Jordan

The cash-strapped National Insurance Scheme (NIS) was on Friday handed a 20-year ‘lifeline’ when Government inked an agreement to hand over almost $6 billion, monies NIS would have invested in the Colonial Life Insurance Company Limited (CLICO) – an investment that became impaired when CLICO (Guyana) was ordered liquidated back in 2009.

Finance Minister Winston Jordan presents the Debenture agreement to NIS General Manager, Doreen Nelson

Finance Minister, Winston Jordan inked the Debenture agreement in the presence of NIS General Manager, Doreen Nelson, CLICO Liquidator, Bank of Guyana Governor Dr Gobin Ganga and the Finance Ministry’s Debt Management Director Donna Yearwood, among a host of other stakeholders.

The ceremony was held at the Finance Ministry, Main Street, Georgetown and would see the impaired monies being repaid to NIS over a 20-year period, with the first tranche of just over $317 million to be made payable in January 2017.

Approval was granted for government to make payments to the NIS through the issuance of 20 Non-negotiable Debentures, to be redeemed annually over 20 years, at a fixed interest rate of 1.5 per cent.

Timely intervention

NIS General Manager Doreen Nelson in welcoming the intervention by the administration, pointed to the cash-strapped nature of NIS:

“(It is) certainly good to finally have this matter out of suspension and a decision taken in terms of the guarantee made some years ago…I am sure that you are aware of where we are financially.”

She was at the time referencing a Parliamentary resolution, in tandem with a commitment by the then People’s Progressive Party/Civic (PPP/C) Administration under former President Bharrat Jagdeo, that all of the CLICO liabilities will be paid off.

NIS over the years would have also been experiencing a situation where its annual expenses began outstripping its revenue – a situation compounded by the billions it had impaired in CLICO for a number of years.

Nelson told those in attendance, including the media, “we find that this is a timely intervention” and pointed to the company’s upcoming actuarial review which is expected to make further recommendations on restructuring the company.

Speaking on behalf of Government, Finance Minister Jordan said the impaired investment has had a traumatic effect on the operations of NIS.

He denied that Government was giving NIS a loan, as had been reported in other sections of the media.

In seeking to offer clarity, Jordan said, “what we are seeking to do is to give NIS, as most as possible, what they invested in CLICO over a period (to now be re-paid over a period of 20 years).”

According to Minister Jordan were government in future to recover anything from CLICO with regards the NIS investments, those monies would be placed in the Consolidated Fund.

Sad day

Jordan quipped too that while it was a happy day for NIS, it is indeed “a sad for the taxpayer of Guyana because it is the taxpayer who have to bear these sets of payments over the next 20 years…

In excess of $5.89 billion is gonna be diverted to meet these payments, so just consider what that kind of money could have done for other areas, be it wages or infrastructure or other running costs of the government.”

Nonetheless, Minister Jordan is of the opinion that it’s “no use crying over spilt milk at the moment.”

Meanwhile, CLICO liquidator Dr Ganga in providing an update on the payments being made to its policyholders, said while a significant amount has been recovered and paid over, the company still had weighty liabilities to honour – almost $6 billion.

According to Dr Ganga, as of the end of July last, CLICO would have made total payments to the tune of $6.7 billion to a number of policy holders, related parties and organisations.

He did seek to point out that while 8882 cheques would have been uplifted and processed to the tune of $6.7 billion, there are still 2881 cheques for persons yet to uplift. This outstanding amount, according to Dr Ganga, amounts to in excess of $130 million.

According to the CLICO liquidator, the company still has debts to repay including to NIS to the tune of $5.9 billion.

Speaking directly to the NIS repayments and an outstanding $4.9 billion, Dr Ganga was quick to point out that this will not be taken off the books, since CLICO is still exploring options to recover its monies.

He said too that another Government organisation – the Guyana Forestry Commission – is also owed another $240 million, “so we are hoping that we will have enough assets for sale to pay the “organisations, related parties and others, fully what is owed to them, except NIS.”