OCG investigates NWA’s $62-m furniture

Tuesday, November 29, 2011

THE Office of the Contractor General (OCG) has commenced a formal enquiry into what it said “appears to be serious irregularities” in the procurement by the National Works Agency (NWA) of office furniture, valued at approximately $62 million, utilising funds which were allocated for the Palisadoes Shoreline Protection and Rehabilitation Works Project.

The Palisadoes project is being executed by China Harbour Engineering Company Ltd under a US$65.37 million contract that was awarded by the NWA.

“The OCG’s enquiry follows an unannounced five to six hour visit that was made to the corporate head office of the NWA yesterday by a team of five senior OCG officials,” a media release said.

The team, which was acting on intelligence, sequestered documents, interviewed senior NWA and Ministry of Transport officials, and conducted a cursory search of five 40-foot containers in which the furniture was being stored on the premises of the NWA.

The OCG team was accompanied by a police officer.

“The OCG’s decision to commence the enquiry was taken this morning after an internal review was undertaken of the sequestered documents and the preliminary statements that were made to members of the OCG team by Mr Earl Patterson, acting CEO of the NWA and by Dr Alwin Hales, permanent secretary in the ministry,” the OCG said.

It said observations included that “both gentlemen were uncertain of the source of funds which were used to facilitate the purchase of the furniture,” and that the “ministry and NWA did not undertake a procurement process for the provision of the furniture in accordance with the applicable Public Sector Procurement Procedures”.

“Given the obvious lack of checks and balances which have attended the NWA’s management of the receipt, un-packing, re-packing, custody and security of the furniture, the OCG has requested that Mr Earl Patterson surrender the keys to the five containers to the principal financial officer of the ministry in the presence of three members of the ministry’s Internal Audit Department and representatives of the OCG for safeguarding,” the release said.