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Govt to terminate Surendra contract for Specialty Hospital

Posted By Stabroek editor On September 9, 2014 @ 6:55 pm In Local News | No Comments

In a major embarrassment for it, the Government of Guyana today said it would move to terminate the controversial contract with Indian company, Surendra for the India-financed Specialty Hospital.

In a statement this evening, the government cited a series of problems and a fraudulent document purporting to emanate from the Trinidad central bank.

The government had used Surendra for several major contracts including the Enmore packaging plant and had been accused of favouring it in the Specialty Hospital contract. The government had persisted nevertheless.

The contract with Surendra was also in jeopardy as a rival Indian company had complained to the government in New Delhi about it and the matter was likely to be taken up shortly by the Indian Parliament.

Earlier this month, local construction company, BK announced that it would seek to sue Surendra in Indian courts for outstanding monies.

The government statement follows:

The Government of Guyana has today September 9th, 2014 written Surendra Engineering Company Limited (SECL) about its deep concerns about its execution of the contract for the design and construction of the Specialty Hospital.

Since late June 2014, the Government of Guyana had been engaging SECL on a number of issues regarding allegation of fraud and financial irregularities.

Initially, the Government’s concerns related to delayed milestones and inadequate accountability by SECL for public funds the company had received on signing the contract with the Ministry of Health.

Subsequently, the Government of Guyana discovered that SECL’s representative in Guyana had submitted a fraudulent document purporting to emanate from the Central Bank of Trinidad and Tobago.

Since the fraudulent Act by SECL was confirmed by the Central Bank of Trinidad & Tobago, the Government has written SECL informing the Company of its intention to:

  1. Terminate the contract;
  2. Pursue legal action against the company for fraud;
  3. Recover public funds from SECL for which it has failed to account fully.

 


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