1. Contract for the construction, delivery & commissioning of 100 Nos. of “R” Class MDPE Channel Marking Buoys, was awarded to a company on 2nd June, 2011 at a contract sum of US$5,781,615.00 (Five million, seven hundred and eighty-one thousand, six hundred and fifteen Dollars);
2.The contractor was later paid 15% advance payment as mobilization fee of US$867,242.25 (Eight hundred and sixty-seven thousand, two hundred and forty-two Dollars, twenty-five cents) which was supported with a Bank Advance Payment Guarantee (APG) dated 7th June 2011;
3. The contract was awarded in foreign currency denomination, in contravention of Financial Regulations 2914.
4. Despite the fact that a tenderer quoted the sum of US$3,574,216.80, being the lowest bid for the job, the Parastatal Tenders Board (PTB), however, recommended that the contract should be awarded to another tenderer who quoted US$5,781,615.00 (Five Million, seven hundred and eighty-one thousand, six hundred and fifteen Dollars), the third lowest bid, claiming that the contract may be abandoned if awarded to the tenderer with the lowest bid.
5.The preferred bidder refused to refund the advance payment of US$867,242.25 (Eight hundred and sixty-seven thousand, two hundred and forty-two Dollars, twenty-five cents) upon the termination the contract through a letter with Ref. No. HQ/GM/PROC/AD/T.4/478 dated 23rd April 2012, following a directive by the Bureau for Public Procurement, in response to a petition by the lowest bidder, and
6.The directive by the Authority to the contractor to keep the advance payment in an Escrow account until the issues are resolved was not complied with.