In the face of allegations of procurement breaches in the award of contracts for training programmes, Guyana’s Small Business Bureau remains mum, saying that it will eventually issue a statement on the matter.
“We will put out a statement but I can’t say when, if it will be Tuesday, Wednesday or next week,” head of the Small Business Bureau Dr. Lowell Porter told Stabroek News yesterday.
Porter was contacted last Thursday and had said then that the agency would be issuing a press statement. He said when the statement is completed it would have to be approved.
Last week, People’s Progressive Party/Civic (PPP/C) parliamentarian Juan Edghill questioned the Bureau’s handling of contracts, saying that it raised serious procurement concerns. He noted that 14 companies had submitted Expressions of Interest (EOI) to the Small Business Bureau to provide training services but the Bureau terminated the process and told the bidders that the contract was aborted. However, three companies were subsequently awarded contracts.
“Recent documented information, available to me, indicated that on the 8th day of June 2018, the CEO, Dr. Lowell Porter, of the Small Business Bureau indicated that the previously advertised expression of interest (EOI) for training services was aborted,” Edghill said as he made reference to the letter.
In that correspondence, which was released by Edghill, Porter informed the bidders that they would be advised of the Bureau’s email address, where they could submit training proposals at a later date if there was another EOI.
However, on December 11th, 2018, Porter wrote to the Chairman of the National Procurement and Tender Administration Board (NPTAB) Berkley Wickham for approval of contracts and payment for Management Options Inc. ($750,000), Empretec ($750,000) and Cerulean ($900,000) for training in Region 4.
Less than two weeks later, the NPTAB Chair-man replied, giving Porter the approval.
“This highly suspicious and irregular procurement activity is further compounded by a document from the Training and Development Officer to the Permanent Secretary of the Ministry of Business, through Dr. Porter on the 28th of November, 2018, requesting the sum of $7,575, 000 for payment to Management Options Inc., the sum of $3,000,000 for payment to Empretec and the sum of $1,800,000 for payment to Cerulean for training services to be conducted in December, 2018,” Edghill stated.
A former Junior Minister of Finance, Edghill listed a number of issues that he believes the Bureau should address and clarify. “Provide proof, publicly, that after annulling the EOI based on the email adumbrated above, that the 14 companies were all approached to resubmit proposals for this contract. Provide, publicly, the evaluation report for the 3 contracts. How is it that a request for payment was made even before the contracts were awarded by NPTAB? Since we have also seen invoices for payment, which shows that training took place on the 29th and the 31st of December 2018, can the Small Business Bureau provide evidence that this training was actually conducted?” he questioned.
He noted that the contracts were for training in Region 4, however, the companies submitted invoices for training, which was conducted in Regions 5 and 6. He also said he learnt key technical personnel of the agency had been relieved of their duties. “What is going on here?” he questioned.
The provisions of the 2019 budget place a major focus on small businesses.
Minister of Business Dominic Gaskin had told the National Assembly during the 2019 budget debates that the Bureau would assume an increasingly critical role in the national response to the three “main challenges” facing small businesses in Guyana, “training, access to finance and improved opportunities for small businesses.”
Gaskin disclosed that as at November, 2018, the Bureau had been instrumental in facilitating training for 948 operators in sectors that included cosmetology, soap manufacturing and sustainable forestry. Additionally, he said the Bureau had played an important role in supporting 387 displaced GuySuCo workers with training in areas that included plumbing, transitioning to farming, catering, sewing and the preparation of loan and grant applications.
For 2019, the Bureau is expected to build capacity among parties seeking to sign on to government’s programme for the allocation of 20% of contracts to small businesses.
It is to this end that the Minister of Business had disclosed that the Bureau’s role will include “basic training for managing and operating business” as well as “sector-specific training, including green agro-processing, green agricultural practices and the use of green technologies.” Government has allocated $18 million for such training, which is expected to benefit some 660 persons.
