Friday, June 3, 2011

AG tells NP to scrap $40M contract process, do it again

Attorney General Anand Ramlogan said Thursday he has recommended to the National Petroleum Marketing Company (NP) that it scrap the recent tenders for the supply of 20 tractor trailer trucks for transporting fuel and begin the process all over.

Ramlogan was speaking with reporters about the the report of an investigation into the process for evaluating tenders for a $40 million transportation contract.

The evaluation became controversial when the lawyer for one of the companies involved in the process - CDS Limited - wrote to the energy minister claiming that his client faced discrimination in the process.

Minister Carolyn Seepersad-Bachan ordered an immediate investigation. However she recused herself after finding out that her brother had a business connection with one of the companies involved. She passed the matter to the AG.

Ramlogan said the bidding process was flawed and there were too many inconsistencies.

He noted that CDS, the company that currently holds the contract with NP for transporting fuel, made a high score in the evaluation.

However the report from the executive management stated that there were many problems with defective equipment, aging and unsafe vehicles and an excessive amount of downtime on the vehicles resulting in delays in delivery.

Ramlogan said he could not understand how on the one hand people could find a company so deficient and on the other award it high scores in the evaluation.

Ramlogan also corrected what he said were "malicious falsehoods" in media eports on the issue. He made it clear that contrary to what the media reportered, NP did not award the contract to any of the 14 companies that sent in bids.

He said based on the unsatisfactory record of CDS it was agreed to undertake a split contract between the two companies for the supply of new equipment. However he said CDS rejected that.

He said two companies - CDS and Gopaul and Company - were shortlisted, with the evaluation team suggesting that the contract could have been awarded to any of the two. He said the split contract idea was not fair to the other companies.

"In the circumstances, I recommend that the procurement process which had been employed by NP for the lease of these tractors for the distribution of fuel in untenable. I would advise that the entire process be quashed. My advice is for the tender for the distribution be started afresh, de novo, as a matter of law," he said.

Ramlogan said cabinet unanimously accepted his recommendation. He noted that this course of action is consistent with the policy of the People's Partnership government of transparency in its work. He reminded reporters that when issues arose over the award of contracts for the lighting system at the country's airport, the prime minister intervened and ordered that the process be redone.

The AG said the country voted for change in the way things had been done and the new government is determined to offer real change.

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Jai & Sero

Jai & Sero

Our family at home in Toronto 2008

Our family at home in Toronto 2008
Amit, Heather, Fuzz, Aj, Jiv, Shiva, Rampa, Sero, Jai