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In his latest report on the nation’s finances for the period of 2013, Auditor General (AG) Deodat Sharma highlighted instances within the Ministry of Home Affairs where millions of dollars were overpaid to defaulting contractors.Auditor General (AG) Deodat SharmaThis led to legal advice being sought from the then Ministry of Legal Affairs in an effort to recover the money.In the report on the country’s overall finances, Sharma said that for 2013, overpayments amounting to $22.1M were made on measured works on various contracts administered by Ministries, Departments and Regions, including the Guyana Elections Commission (GECOM), the Ministry of Tourism, Industry and Commerce, the Ministry of Home Affairs, the Guyana Defence Force and Regions Four,Mike Webster Steelers Jersey, Five, Six, Eight and Ten.In relation to the Ministry of Home Affairs, one contract had to be canceled following negligence from the contractor. Overpayment also occurred in the case of the Albion Police Station. Some $3.5M in materials was left outstanding.According to the AG report,Wes Hopkins Eagles Jersey, the Ministry was unable to recover the sum of $3.4M overpaid on the contract for the construction of the new capital dormitory at the Georgetown Prisons. The contract was subsequently terminated due to an extreme lack of diligence on the part of the contractor.The Ministry eventually levied on the performance bond held at the Colonial Life and General Insurance Company Limited (CLICO). According to the AG,Dennis Smith Broncos Jersey, evidence was seen whereby the Ministry of Home Affairs wrote to the Ministry of Legal Affairs seeking assistance and advice for the institution of proceedings against the contractor.A reminder was also sent to the Ministry of Legal Affairs on January 28,Bob Griese Dolphins Jersey, 2014 in an effort to conclude the matter.In ruling on this outstanding sum, the AG’s advice was for the Ministry to pursue the matter to finality with the relevant authorities.The report also highlighted cases of overpayment with regard to remedial works done on the floor,Jack Youngblood Rams Jersey, walls, roof, windows and doors at the Albion Police Station, totaling $3.5M. The Ministry subsequently wrote to the project consultants for a resolution,Walter Payton Bears Jersey, resulting in the consultant accepting responsibility.In this matter also, the Audit office recommended that the Ministry pursue the matter to recover the overpayment.Meanwhile, the contract for the rehabilitation of the Kamarang Police Station, which was awarded in 2010 to the tune of $3.3M, was also cited by the AG.According to the AG,Steve Bartkowski Falcons Jersey, amounts totaling $2.3M were paid on certified works for that year. A subsequent payment of $697,Troy Aikman Cowboys Jersey,150 in the year 2012 increased disbursements under the contract to $3.088M.An inspection of the works in that year revealed that a total overpayment of $1.2M had occurred as a result of twenty discrepancies in measured works, where payments amounted to $1.7M and actual works were valued at $508,600.According to the AG,Steve Grogan Patriots Jersey, the Ministry was able to clear to the satisfaction of the Audit office an amount of $272,750, leaving a balance of $1M to be recovered.The audit office recommended in the report that the Ministry make every effort to recover the overpayment and put systems in place in order to avoid any overpayments to contractors in the future. |
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