As he had previously hinted, Attorney General (AG) Anil Nandlall SC has filed a more than $400 million lawsuit against S. Maraj Contracting Services and the Assuria Insurance Company over incomplete work on the Leguan Island stelling.
The AG pegs the total sum owed to government at some $445,450,674 apart from interest, for what he says is breach of contract on the part of S. Maraj to complete rehabilitation works on the stelling.
He is seeking general damages in excess of $100,000,000 against the contractor for breach of contract; $41,325,926 as liquidated damages and $41,325,926 which he says is owed to the State by S. Maraj under performance bond issued by Assuria.
The AG is also suing to recover the sum of $81,398,375 which he says the contractor owes the State under the mobilization bond issued by the Insurance Company and an order for restitution for that amount too, from the contractor.
Additionally, Nandlall wants aggravated damages in the sum of $100,000,000 from S. Maraj; or alternatively, an order of restitution against Assuria for what he says are all sums owing on the advance guarantee and performance bond.
The AG is also asking for interest in accordance with the Law Reform Miscellaneous Act, and any further orders the Court deems just to grant in addition to costs.
Outlining the facts of the state’s case, Nandlall said that government, through the Transport and Harbours Department (T&HD) had executed a written agreement with S. Maraj on September 20th, 2018 for the rehabilitation of the Leguan Ferry Stelling.
The contract, he said, was executed for the sum of $413,259, 260 with works to be completed on or before June 18th, 2019.
The AG said the contractor had submitted an agreed schedule of works to the project Consultant but failed to execute the works in accordance with that schedule, thus causing the project to be inordinately delayed.
As a consequence, Nandlall said that project consultant, Quintech Engineering Services conducted an assessment and found that the contractor had only completed “minimal works” resulting in a delay of works for approximately two years.
As a result of this, he said that government decided to terminate the contract on February, 22nd this year on grounds of failure to comply with the schedule and “the inordinate delay” in carrying out works on the part of the contractor which the AG said amounted to a fundamental breach of the contract.
In his statement of claim (SOC) on behalf of government, Nandlall said that because of the breach, government has suffered loss and damage, especially since the contractor was paid a Mobilization Bond of $81,398,375 issued by Assuria.
The AG further deposed that on September 26th, 2018 S. Maraj executed a performance bond with the Insurance Company in the sum of $41,325,926 which he said was a condition for performance by the contractor under the agreement between the government and S. Maraj. Nandlall said that because of the contractor’s failure to complete the repairs on the Stelling, the interest of the public has also been affected.
Late last month, Nandlall had written Satrohan Maraj communicating his intention to take the contracting service to court.
Just before this, Public Works Minister Juan Edghill had announced government’s decision to terminate the contract, while noting findings of the Audit Office, which he said had determined that the contractor “is incapable, unable, and does not possess the wherewithal” to successfully execute the project.
The contract was inked during the tenure of Minister of Public Infrastructure, David Patterson under the former APNU+AFC Administration, but the work done had prompted complaints from residents that the planks used were encrusted with barnacles and they demanded the immediate removal of the infested wood.
