The AFC is requesting an audit of some $29M spent by government for “mobilization payment” on infrastructural works for the specialty hospital being constructed at Turkeyen, East Coast Demerara.
A senior official of the Donald Ramotar administration told Stabroek News yesterday that the government had nothing to hide, after AFC executive Moses Nagamootoo said that the land preparation at the site was “clumsily executed, incomplete,” and that the property remained flooded. At a press conference yesterday, Nagamootoo noted that in last year’s budget, $150M was allocated for works, which included a design to the hospital while financing for the project by the Government of India was being pursued. He added that it was not until the last parliamentary sitting that the party learnt that none of the allocated funds were spent, although $29M was used from the state’s Contingencies Fund on “mobilization payment.”
AFC along with APNU had flagged the $29M expenditure when government sought approval recently to clear supplementary budget spending from last year.
The item is to be considered again when the National Assembly meets today.
Nagamootoo said that despite government’s claims, the AFC has never opposed the proposed hospital and had voted for the initial $150M allocation for the project in last year’s budget. However, he said when asked to approve the $29M expenditure, the AFC demanded reasonable explanations first be given.
The senior government official, however, noted that while the $150M was never used, separately G Bovell Construction Service was awarded a contract for preparatory works to the tune of approximately $98M.
This was for the land filling and preparation, building of the fence to the property, laying drains, installation of four bridges and gates as entrances and exits and an access road. The estimated time for the completion of the project was given as three months.
Explaining the $29M expenditure, the government official said that government had nothing to hide since the funds were used as mobilization payment—monies given before works begin to a contractor to purchase necessary material which would be then be deducted from the contract award before the completion of a project—to G Bovell Construction Service.
