By Lynford Simpson, News EditorTHE NATIONAL Housing Development Corporation (NHDC) has failed to provide the Auditor-General with evidence that contracts totalling $2.25 billion entered into between February 1996 and June 2001 for eleven housing solutions under the Government's Operation PRIDE project, were awarded through the stipulated competitive tendering process.
Auditor-General, Adrian Strachan, in his annual report for the financial year ended March 31, 2003, and which was tabled Tuesday in the House of Representatives, said the contract amount over the five-year period did not have the recommendation of the Government's Contract Committee/National Contracts Commission, and was not approved by the Cabinet.
According to Mr. Strachan, in "most instances" there was also no evidence that approval was given by the National Environment and Planning Agency (NEPA), formerly Natural Resources Conservation Authority, before contracts were signed and/or work commenced on the projects.
ADVISED
The NHDC was advised that failure to follow the proper procedure "could undermine the receipt of the best value for money and may result in developments being done in environmentally unsuitable locations."
The Auditor-General reported that since June, 2002, there has been compliance with the Contractor-General's requirements.
But other deficiencies were uncovered at the NHDC. According to Mr. Strachan, there was "no indication that either a performance bond or bank guarantee was provided although provision for this was made in a contract valued at $368 million for the Retirement 11 housing project. The contract was signed in May 2001.
