Public Security Minister Khemraj Ramjattan

Specialty Hospital controversy

– “it will be Fedders Lloyd whether the company was disqualified or not”

By Edward Layne

Despite mounting criticism from anti-corruption bodies and transparency activists over a decision to select disqualified contractor Fedders Lloyd to construct the Specialty Hospital at Liliendaal, Greater Georgetown, Public Security Minister Khemraj Ramjattan has blanked all possibilities of retendering the multimillion-dollar project.

An artist’s impression of the Specialty Hospital

The most recent call for the scrapping of the recently-signed Memorandum of Understanding (MoU) between the Government and Fedders Lloyd came from local anti-corruption watchdog Transparency International Guyana Incorporated (TIGI) President, Father Compton Meerabux on Saturday.

“The fact the Fedders Lloyd deal is worth more than US$14 million, it demands the highest ethical standards compliance… we recommended that there should be a retendering of the whole process, because there are too many issues involved in the process,” the TIGI President said.

However, when asked, in light of the TIGI President’s call whether the Government would consider retendering the project, Public Security Minister Khemraj Ramjattan, a key figure at the centre of the controversy, told Guyana Times that there was no need for a fresh procurement process and Fedders Lloyd would be the company completing the project, despite the fact that it had been disqualified from the initial bidding process.

“Absolutely we do not see the need for retendering. We see, however, the need to give it to Fedders Lloyd in this case … as I quoted that you can give it to any third party and any third party meaning Fedders Lloyd, whether he is disqualified or not,” Ramjattan told Guyana Times.“The Government of the day has a right to take on any party; it could be a Government contractor or any third party at the behest of the Government.”

Ramjattan sought to justify the Government’s decision on the grounds that retendering would cause a loss of time.

Father Meerabux had also noted that the fact Ramjattan had advocated on behalf of Fedders Lloyd after it was disqualified was enough reason for there to be questions about whether or not the Minister used his influence in Government to ensure that the company was engaged in completion of the project.

“There is a conflict of interest with Mr Khemraj Ramjattan and that rivals transparency and there should be a retendering of the whole process,” Father Meerabux said.

But Ramjattan rubbished the TIGI President’s argument, noting that there was no conflict of interest.

“There is absolutely no conflict of interest; rather it is the remedying of an injustice done,” Ramjattan argued.

The Public Security Minister, who had represented Fedders Lloyd, further sought to justify his argument by accusing the former People’s Progressive Party/Civic (PPP/C) Administration of victimising the company by falsely claiming it was disqualified as he sought to accuse the team of technical officers who evaluated the bid and disqualified Fedders Lloyd of carrying out political instructions.

Ramjattan said the company had the competency to construct the hospital, having a history of constructing over 80 similar projects around the world.

Ever since the coalition Government moved to sign the MoU with Fedders Lloyd in November, there have been heaps of criticism from anti-corruption activists, especially over the fact that Ramjattan, who is also a Vice President, had a very close association with the company.

Chartered Accountant Christopher Ram, a staunch supporter of the APNU/AFC coalition, recently declared that the Government should revisit the entire transaction.

Another transparency advocate, Economist Ramon Gaskin had said that Government should have moved to retender in the first place, pointing out that even before this report was made public, there was already a shadow of corruption hanging over the selection of Fedders Lloyd, since the company’s Attorney, Khemraj Ramjattan, was now a Government Minister.

“Scrap the whole thing and retender… (Because) they (the Government) lied to the public,” Gaskin declared.

“They are supposed to open this matter for tendering process and they are supposed to allow other people an opportunity… Ramjattan is a senior member of the Cabinet and he is in a position of kind of a conflict of interest…,” former Government Minister and political commentator, Dr Henry Jeffrey had told Guyana Times.

In 2012, a US$18 million contract was awarded to India-based Company Surendra Engineering, which was tasked with designing and building the controversial facility. The funding was provided by the Indian Government through a Line of Credit.

In January, the contractor’s services were terminated owing to several contractual breaches. The matter was taken to the High Court and compensation was accordingly awarded to the Government.