AFC flags mismanagement of public funds on road contract

The Alliance For Change (AFC) has voiced concerns regarding the recent revelations of significant advance payments made to the Trinidadian contractor Kalco for the Conversation Tree Road Project, which remains incomplete. Minister of Public Works, Juan Edghill, disclosed that over $400 million GYD was paid in advance to Kalco, who subsequently failed to deliver the project, resulting in substantial losses for both the government and taxpayers.
During a parliamentary session, AFC Member of Parliament (MP) David Patterson inquired about the total expenditure on the project, the amount advanced to Kalco, and whether any liquidated damages were enforced. Minister Edghill revealed that Kalco was awarded the contract for $830,293,458 GYD in September 2022 and received $465,223,474 GYD—56% of the contract sum—as an advance payment.
In a concerning turn of events, Minister Edghill admitted that no liquidated damages or penalties were applied. Instead, the government reached an “amicable settlement” with Kalco. This settlement allegedly included the seizure of $153,600,000 GYD worth of equipment to offset the outstanding advance payment, but no tangible proof of this equipment seizure has been provided.
Even more alarming is the awarding of a new contract to S. Jagmohan Construction and General Supplies Inc. through sole sourcing, amounting to $844,027,988 GYD—$13 million more than the original contract. This development raises serious questions about the government’s procurement practices and their commitment to fiscal responsibility.
Commenting on the situation, former Minister of Public Works and current MP David Patterson highlighted that the government effectively allowed Kalco to walk away with at least $311,623,474 GYD. The absence of transparency and accountability in this process is indicative of a broader pattern of mismanagement of public funds by the PPP/C government.
This incident is not isolated, according to the AFC which observed that there have been multiple instances under the PPP/C administration where contractors have been advanced substantial sums without adequate oversight or recourse.
These recurring issues, the party maintains, reflect a significant deficiency in the stewardship of public funds by the current government.
As such, the AFC have since called for a thorough investigation into the matter and demands that the government adopt stringent measures to ensure accountability and transparency in all future contracts.
The party is of the view that it is imperative that the citizens of Guyana have confidence that their vital monetary pool, which they will have to repay to lending agencies for generations, is being managed prudently and that those responsible for fiscal mismanagement are held accountable.