The Caribbean Development Bank, CDB, has again made it clear that there had been no finding by the Bank of fraud or corruption in declaring the mis-procurement in relation to the Yara-baqua River Defence Project in St. Vincent and the Grenadines.
The issue was discussed, during a meeting here this month involving President of the Caribbean Development Bank (CDB), Dr. Warren Smith, along with a team from the Bank, and Minister of Finance, Camillo Gonsalves along with other representatives of the Government of St Vincent and the Grenadines.
Dr. Smith highlighted the strong partnership with St Vincent and the Grenadines since the Bank commenced its operations almost 50 years ago. And he reiterated the Bank’s determination to continue working collaboratively with the Government to realise its desire for a better future for its people.
The President acknowledged the ongoing public discussion on the Yara-baqua River Defence Project in St Vincent and the Grenadines and the Bank’s recent decision to declare a mis-procurement on this Project.
He stressed the importance of clarity with respect to CDB’s procurement practices, particularly as recipients of CDB-financed projects are responsible for undertaking procurement in accordance with prevailing CDB procurement policies and procedures. He noted that for capital projects, recipients typically hire experienced independent consultants to prepare the technical designs and to evaluate, and advise on, the procurement and supervision of contractors.
Dr. Smith also noted that the CDB is not a party to the contracts awarded under a project, and plays a supervisory role, checking that the procurement process undertaken conforms to its guidelines. He said the Bank does not participate in the evaluation of bids or proposals. However, for major contracts, the Bank will provide a “no-objection” to key procurement documents, such as evaluation reports, before the process continues to the next stage.
Against this background, Dr. Smith observed that mis-procurement may result when a contract is not procured in full compliance with CDB’s policies and procedures. He stated that even if a contract is awarded after obtaining a “no objection” from the CDB, the Bank may still declare mis-procurement in certain limited circumstances, including where it subsequently receives key information in relation to the process.
The President confirmed that the Bank had originally granted a “no objection” to the award of a contract under the Project, based on the bid evaluation report prepared by the independent consultants.
He said mis-procurement was subsequently declared by the Bank as the procurement process was determined, on review, to be not in accordance with the Bank’s procurement guidelines. The President reiterated his previous assertion that there had been no finding by the Bank of fraud or corruption in declaring the mis-procurement.
The CDB President drew attention to St. Vincent and the Grenadines’ new Public Procurement Act, which was passed in December 2018 as part of an ongoing procurement reform programme for member countries of the Organisation of Eastern Caribbean. He noted that with the passage of this Act, St Vincent and the Grenadines has one of the most robust legislative frameworks in the Caribbean.