Attorney General Anil Nandlall has filed a lawsuit against BK International Inc and the North American Fire and General Insurance Company Limited (Nafico) over the breach of construction of the Yarrowkabra Secondary School.
On December 31, 2019, the Ministry of Education, under the stewardship of former Minister Nicolette Henry, inked an $826.7M contract with BK International Inc. for the construction of the school at Yarrowkabra, Region Four.
The school is intended to benefit children in the community and those in neighbouring villages along the Linden/Soesdyke Highway. The facility was scheduled to be completed in March 2021.
However, given the elapsed time and remainder of works, the contract was terminated. As a result, the 600 students who were expected to benefit from the institution will have to continue traveling long distances to attend other schools.
In court documents seen by Guyana Standard, the State wants over $100 million in general damages for the breach of contract and $82,675,774 as liquidated damages under the contract’s provisions.
Moreover, the State is claiming $82,675,774 payable by BK under performance bonds issued by Nafico for the contract agreement, along with $165,351,547 for advance payments.
Besides, the State is requesting an Order from BK for restitution for works already paid for but were not executed and $50 million for trespassing, and $100 million for breach of contract.
Additionally, the State is asking that the Court issue an Order of Restitution against Nafico for all monies owing on the advance guarantee and performance bonds to the Government of Guyana.
They are also seeking interest under Section 12 of the Law Reform Miscellaneous Act, Chapter 6:02 of the Laws of Guyana, in addition to further Orders as the court deems just along with Costs.
On November 1, 2020, the Attorney General and the Minister of Legal Affairs Anil Nandlall wrote BK International Inc., informing the entity that the contract was terminated with immediate effect.
He noted that the company had committed a fundamental breach of the terms of the contract, and as a result, the Government of Guyana exercised its right to terminate the contract.
On November 10, 2020, the Consultancy firm visited the site and observed that the company was still progressing with works despite the contract being terminated.
In a letter dated November 11, 2020, the Consultancy firm wrote the Managing Director of BK International Inc, Brian Tiwari, informing him that pursuant to Clause 40.5 [Termination], “the contractor is to stop the works immediately, make the site safe and secure and leave the site as soon as reasonably possible.”
In that letter, the Consultants instructed the Contractor to stop works immediately and advised that any work that is done or materials ordered beyond the date of termination, November 1, 2020, is done at the contractor’s own risk.
On November 19, 2020, Permanent Secretary of the MOE, Alfred King, wrote B.K International Inc., instructing the company that all work must come to a halt with immediate effect and vacate the site within twenty-four hours. The following day, the contractor left the area.
