The Caribbean Development Bank (CDB) says it declared misprocurement in the Yarabaqua River Defence Project in St. Vincent and the Grenadines because the local firm to which the contract was assigned, did not have the required financial information.
The CDB, after an investigation following a complaint by Bally and Bally Investments Ltd., one of the tenders, cancelled financing for the project and ordered that Kingstown repay any money already withdrawn for the project.
The decision by the CDB to withdraw financing for the project, came after an investigation triggered by a letter of objection to the chief engineer in September 2018.
In his letter of objection, Cameron Balcombe, managing director of Bally and Bally Investments Ltd. complained about the award of the contract to Reliable Construction Ltd.
In an April 9 letter to the head of the Tenders Board, Edmond Jackson, the region’s premier financial institution outlined the reasons why it took the action regarding Reliable Construction Services Ltd.
According to the letter, the second reason the CDB gave for declaring misprocurement was that the tender document required an average annual turnover of one million dollars within the previous three years.
However, given that Reliable had only been operating for one year at the time of evaluation, this requirement could not be met.