Clear up THA contracts

TOBAGO House of Assembly (THA) Chief Secretary Farley Augustine has tried to dispel the mystery surrounding the way THA contracts are being awarded, but too many questions remain.

Last month, Mr Augustine replied to allegations that Trinidad contractors were being hand-picked in relation to $309 million in spending by saying a design, build and finance model was being used.

“I assure you, the division did not use a sole-select mechanism to get the contracts done,” he said. “In fact, I am advised that 40 contractors were evaluated. That was then brought down to seven. Three were then selected.”

Mr Augustine also said firms were not being paid upfront, but rather, nine months after completion and after a certificate of completion is issued.

“Those that would have to do these contracts would have to have capacity, will have to have the skill set and expertise, would have to have the finance up front 100 per cent, will have to have the ability to wait nine-plus months to be paid in total – nine-18 months in this case,” he said.

Who these contractors are, what projects they have been assigned, what is meant by “design build” in each case, what degree of vetting and due diligence has been done and by whom, and whether any conflicts of interest are involved – such matters remain unclear.

Mr Augustine has suggested he has left things up to the Division of Infrastructure, Quarries and Urban Development, led by Trevor James.

Mr James, though, has a history of playing fast and loose with procedures relating to approvals for public infrastructure.

What is clear is that questions continue to be raised.

THA Minority Leader Kelvon Morris last week queried claims that a Trinidad company got a contract 24 hours after submitting a proposal.

The Prime Minister, who is himself regularly criticised for not operationalising procurement laws, has alleged discrimination against Tobago contractors.

Whatever their merit, such questions will continue to be raised unless there is a clearer, more transparent system in operation at the THA that allows only the most qualified firms, whether from Trinidad or Tobago, to get work and to meet THA policy requirements.

It has been suggested that a special board should be appointed to, effectively, act as a procurement regulator.

But Tobago need not reinvent the wheel. It could simply go back to basics.

It should clearly publicise each project it intends to undertake, invite tenders and subject each bid to clear criteria. It should reject the idea of having a fixed, selective pool of pre-qualified contractors, to avoid the sense of favouritism.

This should apply not just to infrastructure-related projects.

The THA is reportedly spending $17.5 million on this week’s carnival, with no clear breakdown of how the funds are to be allocated.

It is also funding programmes like URP to do various public works across the island.

Mr Augustine has accused the previous PNM regime of irregularities in its contract procedures, and may well wish not to reward firms that have reportedly benefited from largesse.

But absent clear evidence or adverse findings of fact, he cannot attempt to bend contract processes his way without consideration of the need for open market efficiency, fairness and value for money.