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Auditor General Special Report Slams Management Of The ABC Highway Flyover Project

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Auditor General Leigh Trotman

The Special Audit Barbados Road Network Infrastructure Improvement Project Report has been updated on the Barbados Auditor General’s website. The report gives an unflattering summary of how one of the largest capital projects (ABC Highway Project) in Barbados was managed under the former administration. After reading the report we are tempted to blame the many senior civil servants who would have worked the project which has led Auditor General Leigh Trotman to issue such a negative report. Why would the Permanent Secretary in the Ministry of Finance and the Director of Finance have presided over such a project where such obvious incompetence and inefficiency were commonplace?

The Democratic Labour Party (DLP) government when in opposition made much political mileage on the campaign trail about the ABC Highway Project. When the DLP assumed office Prime Minister David Thompson in unprecedented fashion fired 3S from the floor of parliament, the company responsible for managing the ABC Highway project. Months later Barbadians have heard nothing about the status of the 3S relationship. BU sources confirm the government of Barbados is close to agreeing to a settlement with 3S; more tax dollars down the toilet!

As usual with this project like others preceding it the malfeasance attributed to the former government will die a natural death.

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40 responses to “Auditor General Special Report Slams Management Of The ABC Highway Flyover Project”

  1. David Avatar
    David

    Thanks Brutus!

  2. X-MAN Avatar
    X-MAN

    off message:
    fascinating viewing

    http://www.bbc.co.uk/iplayer/episode/b00p5wl1/Storyville_20092010_Simon_Manns_African_Coup_Black_Beach/

  3. Hartley Henry Avatar
    Hartley Henry

    Congratulations…Sir Owen Arthur.

    WE the good people of Barbados are especially proud that you have acceded to PM David Thompson’s request to offer your skills to the development of the Caribbean region.

    Congrats on re-joining the DLP also.
    BFP, is just jealous…..that unlike them… you are able to focus on the big picture !

    Sir Owen, always remember it was the same BFP who sought to EXPOSE you by indicating they were going to publish a MONEY – LAUNDERING story on you…….but just like the COWARDS we all know they are…..they CLAIM they lost the details about the STORY !

    Ha..HA..Ha…..so much for their BELIEF….in INTEGRITY & ACOUNTABILITY…!!!

    New Year’s Day is around the corner……!

    RISE……Sir OWEN !

  4. Spotting-Prejudice Avatar
    Spotting-Prejudice

    Specific mention of the role in these arrangements of Hartley Henry, a Barbadian citizen and Adviser to Prime Minister Skerrit and Barbara Dailey, Dominica Consul General to the US.

    Evidence that the Dominica Labour Party plans to spend EC$22.4 Million on one election in Dominica. That in itself is cause for concern and may mean that a limit on campaign expense is necessary as well as enactment of campaign finance laws.

    The Information reaching us about these activities has left the Dominica Freedom Party quite distressed and concerned that it may not be possible to have free and fair elections in Dominica this year.

  5. Spotting-Prejudice Avatar
    Spotting-Prejudice

    Hartley my friend, looks like you are everywhere and never spoken of in good terms. Why do people, groups, political parties, and countries treat you in this fashion. What can we do old buddy? I would shift that knighthood from Owen to you. Owen can stand on his own, but one day you may falter and that would be calamitous. By the way, after Dominica, what else is on your agenda? I think you have it in you to reap successes between China and Taiwan, what say thee?

  6. Brutus Avatar
    Brutus

    Chapter 5
    Conclusion and Recommendations
    Conclusion
    As in any PPP arrangement, this project required a strong competitive
    process, in order for Government to obtain the best results in terms of price, quality and
    transfer of risk.
    5.2 There was also the need to ensure that all contractual arrangements were
    in place, in order to minimize any disputes.
    5.3 These requirements were not met where this project was concerned.
    5.4 To ensure a competitive process, it is important that enough independent
    private sector companies participate. There are examples of projects in other countries
    where it has been asserted that a competitive outcome was not achieved because there
    were only one or two private sector companies in the market. It is thus imperative that a
    public entity considering entering into a partnering arrangement has a sound basis for:
    (i) making the initial decision to choose this approach to
    procurement;
    (ii) managing its implementation and long-term operation; and
    (iii) effectively carrying out its obligations.
    5.5 The competitive process was weakened by:
    (i) short-comings in the project-approval and tendering phases,
    including the discussions on technical solutions and the
    scope of the project with a potential bidder prior to the issuing of the invitation to tender and the brevity of time
    given to the invited firms to tender;
    (ii) the low number of bids submitted; and
    (iii) the failure to engage in negotiations with the competing firms
    after the submission of proposals, in order to obtain the best
    possible offer.
    5.6 By virtue of having submitted a proposal before the invitation letter was
    issued to other bidders, the firm which was awarded the contract had more time to
    prepare a proposal, and therefore the integrity of the tendering process is questionable.
    5.7 Whereas the invitation letter addressed the widening of the Highway from
    the D’Arcy Scott Roundabout to the Garfield Sobers Roundabout, the two bids
    submitted addressed only segments of this section of the Highway. The proposals
    therefore did not conform to the full requirements of the Project and should have been
    rejected.
    5.8 The assessment process was weakened by the absence from the
    evaluation criteria of a consideration of (a) the project costs provided in the proposals,
    and (b) the financing plan that would have been more beneficial to Government.
    5.9 The commencement of works without full designs, and therefore a realistic
    construction cost, contributed to the disagreements between the contractor and the
    Ministry. Construction costs have soared and the parties could not agree to a final cost.
    If the Ministry had awaited the full designs and final construction costs it would have
    been able to evaluate the project costs, determine before the construction commenced
    whether the costs were reasonable, and avoid the issues that the project has
    encountered with respect to cost. It was not possible to sign a formal Design/Build/Lease Contract, because there was no agreement on the cost of the
    Project.
    5.10 It is therefore unclear why the Ministry thought it necessary to proceed
    with the Project under such uncertain conditions, when the original project completion
    date could not be achieved. The Ministry has however implied that it did not have full
    control of the Project.
    5.11 Another short-coming with regard to the project was the unfamiliarity of the
    Ministry with the BOLT process. Its capacity to make good decisions would have been
    improved through the use of some external expertise familiar with the PPP
    arrangement.
    5.12 The over-riding message for any Ministry that invests in a major project is
    to have sound and enforceable contractual arrangements – to enable the contractor to
    be held accountable. Ministries should also ensure that they obtain technical advice on
    areas in which they do not have expertise.
    Recommendations
    5.13 The scope of works for projects of this nature should be researched and
    finalized before tenders are invited.
    5.14 Potential bidders should be granted adequate time to prepare bids.
    5.15 With respect to direct invitations, the Ministry should ensure that the
    tender invitation is available to a wide market of firms with capacity to undertake such
    projects.
    5.16 The Ministry should ensure that the tender process is fair and its integrity
    is maintained.
    5.17 In any future PPP arrangements there should be more discussion with all
    bidders before a preferred bidder is selected.
    5.18 Where only two viable bids for a project are received early on, or if bidders
    pull out of the competition, leaving the procuring authority with only two bids to choose
    from, there should be a review by the Ministry as to whether:
    There are any defects in the scoping or management of the
    project that may explain the low level of market interest, and
    that could be remedied in time for a re-run of the
    competition; and whether
    The bids on the table provide for good competition, and are
    likely to lead to a value for money solution.
    5.19 A public sector comparator should be prepared to determine whether
    executing the project as a PPP offer better VFM than traditional procurement
    5.20 All necessary contractual arrangements should be in place prior to the
    start of work.
    5.21 There also needs to be greater emphasis on developing skills in
    conducting negotiations in PPP arrangements.
    5.22 The Ministry or the Tenders Committee should seek to ensure that a
    bidder has the capacity to fund, execute and successfully complete a project of such
    magnitude before being selected as preferred bidder.

  7. David Avatar
    David

    Perhaps the biggest capital project to be undertaken in Barbados, the Auditor General lay bare the management of said project which Brutus has conveniently captured above and not a comment. Is it that Barbadians have no problem with how the project was managed? Is it that we don’t hold the office of the AG in high regard?

  8. Bush Tea Avatar
    Bush Tea

    @ David
    What Auditor General lay bare what management what?!!

    …you like you need some sleep yuh…

    First of all, you mean to tell me that after 5 years now of this fiasco, this report is nothing but a litany of general statements that were all known AND DETAILED ON THE BLOGS well before elections????
    *************************************
    5.10 It is therefore unclear why the Ministry thought it necessary to proceed
    with the Project under such uncertain conditions, when the original project completion
    date could not be achieved. The Ministry has however implied that it did not have full
    control of the Project
    ************************************

    HUH?
    That is a conclusion?!!
    David, that is a starting point!
    Don’t you think that a serious audit by the AG’s office should by now be providing ANSWERS to questions like…

    WHO decided to proceed with this “Operation Free Flow of Funds”

    What rules did they contravene?

    WHO EXACTLY DID have full control of the project?

    HOW much money actually went into the project (and what happened to the rest)

    Etc….

    Who did it
    When did they do it
    How much did they steal

    …not just an ‘official’ rehash of 4 year-old blogs.

    ….what you want us to say…..?

    By the way David, do you know of any example where the condemnation of the Auditor general resulted in meaningful reform action in any major issue…?

  9. David Avatar
    David

    @BT

    Blogs are not accepted as a credible source man! The AG reports validates what we know yes, he writes in civil service mumbo jumbo, yes but there is enough for all to see that there was malfeasance.

  10. Brutus Avatar
    Brutus

    Bush Tea – I thought you would at least want to hear what ru4real has to say about the report.

    And don’t forget that during the election campaign no less than the current leader of the Opposition stepped up to defend the project.

  11. Bush Tea Avatar
    Bush Tea

    David,
    An auditors report with general statements like those listed by Brutus mean absolutely nothing. It is no better than BU’s blogs.

    Trust me, when you see such, it means that no further action is planned.

    The masses then feel that the ‘system’ is working – when all that is happening is that officials are concluding what we all already knew anyway.

    ….don’t fall for that D man!

    By reviewing the records and asking some questions to key officials, the AG could easily provide details that would probably explain some expensive personal assets, strange chains of events, and ‘funny’ positions taken by some individuals.

    The fact that this was not done speaks volumes to the Bushman…..

  12. Bush Tea Avatar
    Bush Tea

    @Brutus
    Man what ru4real what?!!

    I think that even he has come to to the realization that he is defending the indefensible.

    In fact, one wonders if the AG took my foolish (bush) advice, if ru4real would not be temporally unavailable to respond of his own free will….for a few years at least…

  13. David Avatar
    David

    @BT

    The build-up to the next general election will make for some interesting times.

  14. Bush Tea Avatar
    Bush Tea

    110% correct David, but not because of our petty and juvenile local politics.

    You may have noted that numerous international experts have now been pushing various versions of my ‘end of phase’ concept recently…. it is becoming obvious to those with eyes…

    …But it would be too distressing to tell you how right you are about the ‘interesting’ times ahead…..

  15. Dennis Jones (aka Living in Barbados) Avatar
    Dennis Jones (aka Living in Barbados)

    @Bush Tea, David.

    The AG’s role and function is not to provide answers. It presents information to Parliament, and it’s for the Public Accounts Committee to take matters forward, or not. The AG has already indicated that the latter has not been functioning properly. But in no sense can the AG’s office just decide to go off and do more than what it’s charged to do.

    The AG and his report are very different from most blogs. He is a known public entity, conducts discussions with other known public and private entities (which is disclosed), and supports his reports with documentation, which is laid before Parliament.

  16. Brutus Avatar
    Brutus

    Perhaps the government’s plan is to sit on this report until next election and then recycle it during the election campaign. If so, I hope that voters take a very dim view of this.

    The Public Accounts Committee is now headed by the Leader of the Opposition so we would not expect that committee to do very much with this report.

  17. Bush Tea Avatar
    Bush Tea

    @ Brutus
    ….a much more likely probability is that ‘interested parties’ have been examining the report to see where the perps went wrong, how details were leaked, and what ‘rewards’ have been reaped.

    Now here is the tricky part –

    The question then becomes – “how can we best benefit from this situation?”

    Is it by:
    1 – carrying out a similar scam ourselves (but without the foolish mistakes made by the last set)

    2 – making political milage by playing righteous and exposing the truth at some critical point?

    3- Holding the guilty persons to ransom by the threat to ‘release’ the truth unless certain demands were met

    4 – Letting the whole matter fade into oblivion- having reached our intended goal of election to office – and not really wanting to hurt one’s friends and family in politics and law….

    The other option of genuinely seeking to do what is right in the sight of God and man has already been eliminated by time…

  18. David Avatar
    David

    @Brutus

    Relevant observation and again demonstrates how our House Committees have failed us over the years and points to a vulnerability of our Lower House which goes ignored because conventions have held strong. Don’t forget the AG also delivered a special report on the NHC which has gone unanswered by the Public Accounts Committee. In the meantime the government of Barbados may yet suffer the embarrassment of having the furniture and fixtures at the NHC building carted away by Barrack.

  19. Avatar
    Anonymous

    When any one talks about project management in Barbados and the English speaking Caribbean it amounts to no more than persons pleasing ministers by letting thieves get their hands on the public money.

    The whole system needs to be thoroughly cleansed otherwise, all that has happened under the ABC project and others like it will be repeated.

    There must be an up rising among the people to stop the stealing that seems to be part of every government project.

    No politician will stop it. The various non- profit organizations must lead the way in forcing government to have a more accountable systems for spending the tax payers money

  20. Things that make you go hmmmmm. Avatar
    Things that make you go hmmmmm.

    I seriously wonder what the AG’s report would read on the project since the government has changed.

    The highway was “gifted” to a party faithful consultant with the most nebulous terms of reference.

    The original contractor was dismissed for “lack of contract” but the government will have to compensate them for “loss of profit” as gee…. they DID have a form of contract. (PM as a lawyer would be fully aware that all that is required is offer, acceptance and consideration to have a legal contract)

    The project with no completion date continued to have no completion date (John Boyce gave one in the press but work obviously continued after that date with no further statement from the minister)

    Features of the original project seem to have disappeared (pedestrian bridges) leaving school children at risk.

    The additional pedestrian crossing by CBC is an extreme hazard where a section of the Jersey Barrier has been removed thus exposing cars to the risk of what will effectively be a head on collision rather than being slowed by the design of the barrier. (The Barrier should be modified as the one on St. Barnabas hill is)

    The removal of the flyovers for political rather than technical reasons has left a situation in Wildey that is hazardous at best.

    It has also left us with the result that traffic still backs up on the higway!!!! Which was the original problem this whole project was meant to solve!

    Barbados has not been well served by either political party on this.

  21. ru4real Avatar
    ru4real

    @ Bush Tea
    How are you man still beating the same old drum ?
    I thought the audits report was not detrimental to the contractors who have proceeded in an a consistently professional manner
    A fact obviously recognized by the Auditor general.

  22. ru4real Avatar
    ru4real

    The removal of the flyovers for political rather than technical reasons has left a situation in Wildey that is hazardous at best.

    It has also left us with the result that traffic still backs up on the higway!!!! Which was the original problem this whole project was meant to solve!
    ————————————
    Had the original visionary project not been hacked about and delayed in every possible way for political reasons by ‘senior civil servants’ the problem would have been resolved.

  23. Brutus Avatar
    Brutus

    For the benefit of ru4real:

    Executive Summary
    “3.In 2004, a US based firm approached the Ministry with a proposal, which included the construction of steel overpasses and the widening of a section of the ABC
    Highway.
    4. On 2nd December 2004 the Cabinet of Barbados approved in principle the
    project now known as the BRNIIP. This project was similar to that recommended by the US based firm.

    8. The report of the Evaluation Committee (a committee formed by the
    Ministry to evaluate the proposals) indicated that the US based firm was also invited to tender for the project. However, no documented evidence of this firm’s invitation was seen. The Committee reported that a proposal was received from this firm on the
    15th December 2004. This would have been eight days before the invitation letter was issued to the other bidders. This raises questions about the integrity of the tendering process.

  24. Brutus Avatar
    Brutus

    22. A due diligence performed on the contracting firm after the approval was granted to negotiate with the firm, found no evidence of its existence prior to 2003. There was no evidence of this firm having a track record of highway extensions and the building of flyovers. Yet in a paper to the Cabinet the Ministry stated that this firm was one of the few offering steel overpass solutions.

  25. Brutus Avatar
    Brutus

    13. Approximately eight months after the MOU was signed, the scope of the
    Project was finalized. However, the required designs were not completed at this time. The contractor, in the meantime, indicated a willingness to commence construction before full designs and construction costs were finalized. Initially, the Ministry was of the view that the Project should not commence without completion of the designs or calculation of the total cost. Subsequently, the Ministry changed its opinion on the matter, and agreed to a Supplemented MOU in order for work to commence. In this arrangement, the contracting firm was given permission to provide road widening designs on a rolling (or ongoing) basis, that is, designs would be completed for a
    segment of the Project and work would commence while designs for the other segment were being worked upon.
    14. The agreed method of executing the Project resulted in the work proceeding and then for cost to be agreed upon later. This placed the Ministry at a
    disadvantage of having to negotiate with the contractor for work already in progress. In addition, an important element in determining costs for road-works projects is the verification of the quantities of material excavated from the construction site, but the
    Ministry indicated that it was unable to verify quantities for this project because of a lack of staff.
    15. The commencement of the Project without complete designs and agreed
    costs contributed to disputes between the Ministry and the contractor about the total cost of the Project. The Ministry claimed that at a meeting held with the firm, an amount of $117 million for Section 1 was agreed on, while the firm claimed that this figure did not include design stage costs and other costs of approximately $9 million. This matter remains unresolved at the time of writing.

  26. ru4real Avatar
    ru4real

    The design costs were never included in the $117 million. Just more lies instigated by the Ministry of Works that have no legal basis whatsover.

  27. ru4real Avatar
    ru4real

    An excellent article in the Advocate

    By A Browne

    http://www.barbadosadvocate.com/newsitem.asp?more=letters&NewsID=7783

    It clearly highlights the very remit that was set out correctly by the previous administration – the freeing up of the ABC highway.
    The contractors 3S offered the best solution and contracted the most experienced traffic engineers to carry out this solution. However the MPT engineers ‘knew better’ and here we have the disastrous results of their interference .

    A Browne notes the dangers of the pedestrian crossings ‘ an accident waiting to happen ‘ something I have said many times before. He notes also the ‘lunatic’ roundabout at Designer Decor – thanks to Mr Nash Lovell who overrode the contractors and insisted on this stupid and expensive addition – probably because his intention was always to sabotage the flyover project which was and is the correct one in order to free up the ABC. A fact now clearly obvious to just about everyone in the country .

  28. Alex Fergusson Avatar
    Alex Fergusson

    NOW THAT WE ARE ON THE ISSUE OF COST AND ACCOUNTABILITY – CAN ANYONE SAY HOW MUCH THE THE DLP’S-INDEPENDENCE-BASHMENT-FETE WILL COST THE SAME TAXPAYERS, WHO CANNOT GET THEIR IMCOME THAT RETURNS?

  29. Enuff Avatar
    Enuff

    Anyone familiar with the Auditor General audit process knows that the AG does not write the report.The ‘auditors’ sent out to do the investigation has a habit of writing and reporting what they want to rather than what is. Ask BIDC, UDC, RDC and see what answers you get.

  30. David Avatar
    David

    @Enuff

    What is your point?

  31. Brutus Avatar
    Brutus

    @ru4real
    Can you tell us what was the prior experience of these contractors that you keep praising?

  32. Brutus Avatar
    Brutus

    @Enuff,
    Isn’t it true that any government entity would have the opportunity to have their comments or responses included in the Auditor General’s report?

  33. Brutus Avatar
    Brutus

    @Alex Ferguson,
    How many bashment fetes would it take to equal the amount of money improperly spent on the highway expansion project?

  34. Enuff Avatar
    Enuff

    David, my point was succinct and there is no need for me to expound. It bears no malicious intent.

    Brutus, go ask public servants who have worked with auditors from the AG office what was their experience.

    Admittedly, there appear to be questions surrounding the process and handling of the ABC highway by the former administration; but the actions by the current government also need to be put under the microscope.

    How can you criticize one party for employing a biased tendering process then appoint a former party candidate as a Consultant on the same project without tendering? Even more telling is the fact that the highway remains gridlocked with traffic and features some of the most idiotic and dangerous traffic ‘solutions’ imaginable.

    I am convinced that the decision to terminate 3S “non-existent contract” on the floor of Parliament was based on political grandstanding rather than good common sense.

    A policy decision with its genesis in demagoguery and/or perception as opposed to reality can lead to deadly consequences.

  35. Brutus Avatar
    Brutus

    @Enuff,

    You didn’t answer my question. My understanding is that if government department or entities think that the AG’s report is inaccurate they can have their comments included in the report. I this true? If so, what is the problem?

  36. David Avatar
    David

    @Brutus

    It is why BU asked Enuff the question ‘what is the point’?

    The AG report provided the opportunity for the respective departments to comment. The PSs and civil servants are the same who would have been in place under the BLP, again we ask, what is your point?

  37. Alex Fergusson Avatar
    Alex Fergusson

    @ David,

    As regards you last post, you are right.

    It is why Section 8. and 9., of the Financial Administration and Audit (Financial) Rules, 1971 Cap. 5 of the laws of Barbados – is so important, because it dispels the notion that Ministers can steal public funds, with assistance from the Board and the Diector/Manager and in case of a Minister or department other than the Board – the PS .

    The 1998 amendment, which the BLP introduced – makes Minister personally liable for all public funds misspend or other?

    Where is the evidence on any government file that any Accounting Officer as provided for at Section 8. (2) of the Act hereto referred – objects to any attempt of any BLP Minister of Board Chairman – to spend taxpayers fund in a reckless manner?

  38. Brutus Avatar
    Brutus

    @Alex Fergusson,

    What in the Financial Rules would prevent a Minister or other public official from getting a kickback from a company or individual that receives a government contract?

  39. Alex Fergusson Avatar
    Alex Fergusson

    @ Brutus,

    That would have to be collusion.

    But often, there are checks and balances.

    Please note that almost all of the PS’s in Barbados are dems.

    It would be impossible to see them joining with the BLP Ministers to steals.

    Note also that as it relates to government contracts, there is often a tenders committee.

    In our system of government/governance, it is much easier for a PS/Director/manager to steal than a Minister.

    Unfortunately, the Minister is the one who gets blame.

  40. BAFBFP Avatar
    BAFBFP

    “Please note that almost all of the PS’s in Barbados are dems”

    How you know that…!

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