The Audit Office of Guyana has launched a probe into contracts issued by the Public Works Ministry for the supply of aggregate. The Minister of Public Works, Juan Edghill has confirmed that the probe is underway.

The issue was recently brought to light after reports surfaced that one of the contracted suppliers who benefited from sole-sourcing might have provided aggregate that may not be usable for the projects it was earmarked for.

In a statement last evening, the Works Ministry noted that since the current government took office, it has been fast tracking its developmental agenda which placed a demand on local aggregate in particular stone and crusher run, which saw prices being bumped up overtime.

The Ministry explained that in an effort to understand the capacity of the current market, Government met with several noted local aggregate providers/quarries and new quarry operators to ascertain their capacity and logistical challenges back in 2020, while contractors were also given the opportunity to import aggregate materials in an effort to meeting the demand and to keep the rate competitive.

The Ministry said it was realised that the local market could not service the demand sufficiently at the time and as result, severe price increases were experienced.

In November 2022, the Ministry went out to tendering for the supply of aggregates, but it claimed that there were still shortages and it made a decision to single source contracts.

“As such, and having conducted a public procurement process, and bearing in mind the over 1,100,000 tons supply deficit, the Government engaged 8 other suppliers much lower value contracts using Single Source Method of Procurement as catered for in the Procurement Act of Guyana. These suppliers were all vetted, samples of their aggregates tested and rates agreed upon to be in keeping with fair market value. This amounted to approx. 985,000 tons and sought to cater for the demands in regions 2, 3, 4, and 6; all of which had extensive projects being executed,” the Works Ministry explained.

It is that process that is now triggering both an internal and external investigation into the awarding of the contracts.

The Ministry believes that it had to intervene since there was an outcry in the construction and associated sectors over the high prices for aggregates.

There are reports that hundreds of millions of dollars in contracts were handed out through the single source method.

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