first_imgThe forensic audit conducted into the National Drainage and Irrigation Authority (NDIA) has revealed that the India-based company that was contracted to supply the Government of Guyana with drainage pumps was also supposed to provide several spares, but failed to do so.According to the audit report, compiled by Nigel Hinds, of the US$2.9 million paid to Surendra Engineering Corporation Limited of Mumbai, India, for the acquisition of pumps, some US$126,000 was for the supply of spares.“The spares were never received by NDIA,” the auditor revealed, adding that “consequent upon the non-receipt of spares, the contract was terminated on October 8, 2014”.The monies paid were part of an agreement between the Guyana Government and the Export-Import (Exim) Bank of India on July 26, 2010. The agreement provided for a Line of Credit to the tune of US$4 million for the purpose of acquiring, installing and commissioning fixed and mobile pumps. The contract was awarded to Surendra.Hinds noted that while the NDIA was unable to provide the dollar credit line agreement, from discussions and documents reviewed by his team it was noted that Surendra was contracted in May 2011 to supply and install eight fixed and six mobile drainage pumps. As part of the contract, the company had to also supply spares and provide technical support.The auditor pointed out that a total of US$2,991,147 was disbursed, leaving a balance of US$1,008,853, which they are trying to locate.“We are yet to receive a confirmation from Exim Bank through the Ministry of Finance that this balance exists,” the auditor stated.Moreover, it was pointed out that the then Chief Executive Officer Lionel Wordsworth had indicated that four of the pumps were rejected because of poor quality materials. The report further stated that there were significant delays in the shipments from India as was noted at several Board meetings.“The first batch of (mobile) pumps along with auxiliary components along with engine, radiator and hydraulic hoses arrived in January 2013, the remaining pumps along with engine, radiator and hydraulic hoses arrived in March 2013,” the auditor stated.These complete units are presently installed in Region Two (Pomeroon-Supenaam) at Lima Sluice and Three Fields Sluice; at Lusignan, Region Four (Demerara-Mahaica); Pine Ground, Mahaicony in Region Five (Mahaica-Berbice), and in Region Six (East Berbice-Corentyne) at Rose Hall Town Sea Side and Mibicuri, Black Bush Polder.As it relates to the fixed pumps, they consist of several units including: engine and radiator, power take off or clutch assembly, drive shaft, gear box and pump assembly. Most of these components had arrived with the exception of one piece each in most cases.The 14 pumps supplied by Surendra Limited are located at: Albion; Bengal, Corentyne; Black Bush Polder; Canal No 1; Crab Wood Creek; Eversham and Gangaram, Corentyne; Lima, Essequibo; Number 19 and Number 43, both in Berbice.The other locations for the Surendra pumps are: Paradise/Enterprise; Pine Ground, Mahaicony; Rose Hall and Windsor Forest.Surendra Engineering Company Limited had several other contracts with the Government of Guyana, including one for the construction of the Specialty Hospital; however, that contract was yanked from the Indian firm in 2014 after there were allegations of fraud and financial irregularities.Following this, the other contacts that the company had were terminated including the one for the supply of the pumps. As part of the contract, engineers from Guyana were sent to India to inspect putting together of the drainage pumps that were being acquired for local use.last_img