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$45m award 'improper' - Finance Ministry contract slammed by McKoy

By Balford Henry, Senior Reporter

THE AWARD of a $45 million contract to Keith Ryan and Company (KRC) Limited to furnish the new Ministry of Finance and Planning building at Heroes Circle, was "irregular and improper", says Contractor General Derrick McKoy.

In a report tabled in the House of Representatives yesterday, Mr. McKoy said the consideration of the Kingston firm for the contract, after it had been disqualified by the Ministry's bid evaluation committee, was improper and disadvantageous to those who had submitted proper tenders.

He also criticised as irregular the Ministry's efforts to have the firm reinstated among the bidders ranked at number three, a higher than previous ranking, and the imposition of "irregular" post-tender conditions on the two highest ranked tenders - Neveast Supplies Limited and EHC Industries Limited - which led to their disqualification, paving the way for KRC's selection.

Mr. McKoy's report follows questions raised by Opposition spokesman on Finance Audley Shaw in the House of Represent-atives seeking details of the award of the furnishing contract. Minister of Finance and Planning, Dr. Omar Davies, tabled answers to the questions in the House on October 24, confirming the contract was awarded to KRC at a cost of $45 million.

However, Mr. Shaw, who was absent from the House when the questions were tabled, later said he was concerned that although Parliament had passed the Bill for the establishment of the National Contracts Commission, from January, 1999, Government contracts were still being awarded without its approval.

He said yesterday this report from the Contractor General had confirmed his concern that all Government contracts of more than $15 million must be referred to the NCC.

The report tabled yesterday by Mr. McKoy said the Ministry's invitation for tenders for the contract had been the subject of an investigation by his office in August and that the Financial Secretary had been informed of that investigation.

It could not be ascertained whether the Financial Secretary had received a copy of the report before the Minister's tabling of the answers in October. However, under the Contractor General Act, Mr. McKoy has the right to submit to Parliament a report relating to any particular matter or matters investigated, or being investigated, by him which, in his opinion, require the special attention of Parliament.

He said in the course of his investigations, he became concerned about the tender process itself, the Ministry's submission to the Cabinet as well as the treatment of the tenderers after the tender was closed.

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