Former Region Two Regional Executive Officer (REO), Denis Jaikaran, recently came under scrutiny from the Public Accounts Committee (PAC) after it was revealed in a 2019 report that his administration awarded seven contracts totaling $63.1 million in violation of the Procurement Act.
Contrary to procurement regulations, the Regional Administration bypassed open tendering by utilizing a three-quotation system for contracts exceeding $3 million. Minister of Governance and Parliamentary Affairs, Gail Teixeira, emphasized the breach of financial rules, noting that all contracts surpassed the $3 million threshold allowed for regional projects.
“Clearly, this is a violation of the financial rules because they seem to be obtaining quotations or using a three-quote system without public tendering or permission for restrictive tendering. So, this is a serious violation because all of these went over the three million threshold that the regions are allowed,” she said.
Among the contracts were the construction of a sanitary block at Suddie Primary School, installation of solar systems at multiple health posts, and rehabilitation of Charity Secondary School. When questioned about the deviation from standard procurement procedures, Jaikaran deferred to the Regional Engineer, claiming inability to recall the rationale behind the three-quotation system.
He stated, “I don’t recall at this stage, why a three-quote system would have been used and it is difficult for me to make any assumption, which I don’t want to make. So, all I would say is, I cannot recall why the three-quote system was used.”
Minister of Public Works, Juan Edghill, joined in to criticize the lack of transparency, highlighting the failure to provide minutes of the Evaluation Committee to the Auditor General’s Office. Despite Jaikaran’s insistence on providing answers, Finance Secretary Sukrishnalall Pasha urged honesty and accountability.
Although some PAC members expressed dissatisfaction with Jaikaran’s responses, Chairman Jermaine Figueira emphasized the necessity of accepting them. However, Minister Edghill emphasized the significance of the breach and called for a thorough investigation by the Audit Office to identify contractors and scrutinize quotation details.
In additional developments during the PAC session, concerns arose regarding the allocation of $111.5 million intended for drug procurement in Region Two. Auditor General Deodat Sharma’s 2019 report revealed discrepancies in drug expenditure, prompting calls for a special investigation into drug procurement across regions.
Former REO Jaikaran attributed the discrepancies to the Health Ministry and asserted cooperation with reconciliation efforts during his tenure. He said, “I’m answering the question from Madame Teixeira, what efforts were made when I was there? So, I’m saying clearly, the efforts that were made, (was) that we continued when we would have made those available sums of money to the Ministry of Finance, the RHO (Regional Health Officer) would have been in regular contact with the MMU (Materials Management Unit) to allow for her to be able to do the reconciliation.”
The PAC members urged further investigation and emphasized the need for clarity and accountability in drug procurement processes across regions.
