AFC Leader Asserts Legal Grounds to Cancel $865 Million Pump Station Contract Linked to TEPUI

The Alliance for Change (AFC) party leader Khemraj Ramjattan has stated that the $865 million Belle Vue pump station contract awarded to TEPUI, a company linked to 'Guyanese Critic' Mikhail Rodrigues, can be legally cancelled. This assertion is based on a report by the Public Procurement Commission (PPC) that revealed TEPUI failed to meet the evaluation criteria for the bid, but was still awarded the contract.

The PPC report highlighted several procurement breaches by TEPUI that were overlooked by the National Procurement and Tender Administration Board (NPTAB) in awarding the contract. The AFC party criticized the PPC's recommendation that it cannot propose any remedial action, calling it a "massive misapplication of privity of contract" and "misconceived lenience" that should have only come from "interested parties who want to see the award go to a friend."

The AFC found the PPC report to be "shamelessly objectionable, unfair and yet another knockdown of a guardrail of democracy". The opposition party accused the PPC of ignoring the minority recommendation to re-tender the project, despite the Commissioners agreeing that Tepui was guilty of serious evaluation disqualifications.

The AFC also raised concerns about potential conflicts of interest, noting that the head of the NPTAB, Tarachand Balgobin, has a senior advisory role at the Ministry of Finance, and that Tepui's owner is a close friend of Vice President Jagdeo. The AFC believes the majority recommendation of the PPC "ruined matters more" and that the legal device of "privity of contract" used by three of the Commissioners to allow the award is "an abomination and an abdication of their duty to protect against fraud and corruption in procurement matters".

Why this matters: This case highlights the significance of transparency and fairness in public procurement processes. The allegations of conflicts of interest and the awarding of a contract to a company that failed to meet evaluation criteria raise serious concerns about the integrity of the procurement system in Guyana.

Ramjattan emphasized that the $865 million Belle Vue pump station contract can be legally cancelled due to TEPUI's failure to meet the necessary evaluation criteria, as revealed by the PPC report. The AFC leader's statement underscores the need for accountability and adherence to procurement regulations to ensure public funds are allocated appropriately and without bias.

Key Takeaways

• AFC claims $865M Belle Vue pump contract can be legally cancelled due to TEPUI's bid failures.
• PPC report found TEPUI failed evaluation criteria but was still awarded the contract by NPTAB.
• AFC criticizes PPC's inaction, alleging conflicts of interest involving NPTAB head and TEPUI owner.
• Case highlights concerns about transparency and fairness in Guyana's public procurement processes.
• Ramjattan emphasizes legal grounds to cancel the contract due to TEPUI's evaluation failures.