4 months ago
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Senior Reporter
The Housing Development Corporation (HDC) is denying claims by Opposition MP Dr Roodal Moonilal that the Government awarded a major housing deal to the “tainted” China Harbour Engineering Company (CHEC) for the Santa Rosa Housing Project.
In a statement yesterday, the HDC denied that CHEC was awarded a contract for the project. It explained that it initiated an open bidding process for the project on January 26 and published a notice of intention on July 31. This triggered a standstill period, which will last until August 14. During this time, aggrieved suppliers or contractors have an opportunity to address procurement-related concerns.
Moreover, HDC said it followed strict procurement processes, acknowledging that all participating companies are registered on the Office of Procurement Regulation’s (OPR) depository.
“As such, all companies were deemed eligible for participation. Further, all companies were required to provide statutory documents and to complete a legal declaration form that provided details on their litigation history,” the statutory corporation noted.
In a press release on Monday evening, Moonilal described the “award” of a $475.8 million public housing construction deal to CHEC, which bid significantly more than local contractors, as “abominable, corrupt, and highly offensive.”
“In a most clandestine manner, the Housing Development Corporation is awarding the contract to CHEC despite its tender being larger than eight other bidders, all owned and operated by Trinidadians and Tobagonians,” Dr Moonilal said.
Dr Moonilal recalled that CHEC was blacklisted by the World Bank for bribery.
He likened this agreement to the 2019 cancellation of a US$72 million housing construction deal with the China Gezhouba Group International Engineering Company by the Government.
Moonilal said selecting CHEC over local contractors denied the T&T workforce the opportunity to participate in economic activity amid growing hardships. The UNC MP also called on the Government to disclose the rationale behind its decision.
However, Guardian Media understands that while CHEC’s overall bid was higher, the unit price was lower. CHEC proposes to build 644 units for $738,871.13 per home. On the contrary, the second-ranked bidder, Woodgreen Construction, hopes to build 226 units to the tune of $768,928.14 per unit.
Despite the HDC’s assurance that it had followed procurement laws, during a WhatsApp exchange yesterday, Moonilal said that local contractors should get sole bidding rights.
“To say rather unit cost is cheaper is a non-argument. The HDC can negotiate a best option with local contractors. This deal smells fishy since it comes months before a general elections, whereby not one housing unit will be built but big money will pass,” he said.
According to the HDC, the process went through three stages and did not involve the HDC’s Board of Directors, the Housing Minister or the Minister in the Ministry.
In stage one, the tender was advertised in the three daily newspapers and the HDC’s e-tender platform. In stage two, the request for proposal was posted on the HDC’s e-tender platform. At stage three, the tenders were evaluated by an independent evaluation committee comprising two technical subject matter experts, one financial officer, and a procurement officer. An award recommendation was made by the evaluation committee and submitted to the named procurement officer and the Procurement Disposal and Advisory Committee (PDAC) before it was sent to the accounting officer for approval. Once approved, the intention to award was initiated.
“The former line minister’s suggestion that the HDC would consider conducting business with a dubious organisation is inflammatory, inaccurate, and designed to bring the HDC into odium and public ridicule,” the HDC said.
“Since the proclamation of the Public Procurement and Disposal of Public Property Act of 2015 (as amended), in 2023, the HDC has relied on the stated procurement process to ensure compliance in its operations and the highest standards of transparency. To suggest otherwise is to impugn the integrity and professionalism of the organisation. The HDC remains confident in the procurement process and resists the comments by a select few who wish to politicise the awarding of contracts for government-subsidised homes for those most vulnerable groups in society.”
Meanwhile, the president of the Contractors Association, Glenn Mahabirsingh, stated that the intention to award was another step in the process, and there is nothing preventing aggrieved parties from challenging the decision.
“If contractors are confident with their submissions, I would expect that they would initiate the review under the challenging proceedings to have a review.”
He did not respond to Dr Moonilal’s comment that the HDC should solely negotiate with local contractors for housing projects.
In a Guardian Media story in September 2018, Prime Minister Dr Keith Rowley defended CHEC’s involvement in the construction of the dry-docking facility in La Brea. The company had been the subject of negative reports coming out of West Africa, Guinea, Bangladesh and, closer to home, in the Cayman Islands. All the reports highlight bribery, fraud or corruption allegations levelled against CHEC.
In 2014, the UNC worked with the same company for the development of an economic zone, a transshipment port, and drydocking facilities. The agreement, which was signed by former trade and industry minister Vasant Bharath, was valued at $500 million.
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