Country should do due diligence before signing any contract with foreign company to build houses

Dear Editor,                                                                                       

The online edition of your newspaper on Saturday 26th August 2023, carried a story about a Memorandum of Understanding signed between the Central Housing and Planning Authority and the South Atlantic Logistics and General Services Inc. for the construction of 200 three-bedroom houses at Leonora, West Coast Demerara. We also learnt that “The Memorandum of Understanding is an example of partnership between Guyana and foreign investors employing the use of new and modern technology to construct homes”.

On its face value, a Memorandum of Understanding is an agreement between two or more entities outlined in a formal document to demonstrate a willingness to cooperate, or merely a sideshow to realize, reflect, and confirm to promises that may have been, or are being made. It is not necessarily legally binding but signals the willingness of the parties to move forward with a contract. Indeed, any legality of that Memo-randum of Understanding must be based on its specific intent and language. We have not seen the Memo-randum nor have there been any reports on the pending signing of contracts. 

While understanding the need to laud and highlight the construction of houses throughout Guyana, we have seen a list of many housing contractors, who have either received or signed, as well as those who have not been granted bids for the design and construction of buildings in the country. Examples are the construction of schools and houses throughout territory, including the refurbishing of City Hall in Georgetown. We are quite certain that there are many Guyanese companies and local workers capable of “employing new and modern technology to construct homes” in our dear land.

We therefore humbly suggest that the country should take due diligence before signing any contract with Southern Atlantic Logistics and General Services Inc. or any foreign company to build houses in Guyana. We hope that it is only a Memoran-dum of Understanding, and not a legally binding contract, and must ensure that no capacity exists to “employ new and modern technology” among all possible Guyanese contractors or companies and their workers (regardless of their ethnic or political persuasion) for the construction of houses in Guyana. 

Yours sincerely,

Keith H. Carter MD

Rajendra N. Mungol MA