Minister of Transport and Hydraulics, Anthony Xavier, has dismissed charges by PNC REFORM (PNC/R) parliamentarian, Jerome Khan, that officials of his ministry had behaved improperly in the awarding of contracts.

The allegations were made by Khan at a PNC/R press conference on June 21.

Xavier said he would not normally waste the time of his technical staff and himself to respond to frivolous statements but felt obligated to report the facts since it was in the public domain.

He said Khan contended that B.K. International had won a disproportionate amount of contracts for a particular area of sea defence through collusion with high-ranking officials of the ministry.

Xavier pointed out that the ministry was just the executing agency for contracts and did not have any say in the awarding of contracts once they pass the evaluation stage.

The minister said the legality of several contracts Khan spoke about was challenged in court and thrown out.

One matter is still pending and a decision was expected soon.

He noted the multinational agencies which funded the contracts have always issued no objection statements for their awarding.

About the charge from Khan that B.K. International had prior knowledge of the Bel Air-Mon Choisi contract which was recently awarded and had mobilised equipment, Xavier dismissed it as "balderdash."

He stated that it was only on Thursday the commencement order was issued. The company had had equipment in Region Five for the Onverwagt-Trafalgar project, he said.

Two evaluations were done for the Bel Air-Mon Choisi contract, he said, and B.K. International won out over Guyana Construction Co Ltd (Guyco).

The awarding of the contract was approved by the Cabinet and the Caribbean Development Bank-the funding agency. Xavier noted Khan made the accusation that Guyco was victimised and given unfair treatment. But the minister asserted that Guyco had a bad track record in carrying out public works, particularly with regards to finishing them on time.

Xavier said he was initially impressed with the company when it came on the scene and was awarded its first contract at Lots 78-79 Corentyne. The job was well done but it has all been downhill since for the company, he said.

"We're not happy that one contractor is getting all the business but the others have to put their acts together," he stated.

He reasoned that companies could not expect to be awarded $200 million contracts "but only have one bulldozer and one hymac."

The minister said Khan had argued that Guyco had sent in a lower bid for the Bel Air-Mon Choisi contract but B.K. International still won.

He explained the contract was tendered in three parts: lot 1, lot 2, and lots 1 and 2 together.

B.K. International's bid for lots 1 and 2 together was lower than Guyco's and given the latter's track record B.K. International was chosen, Xavier said.

He declared that B.K. International was never awarded a contract under the European Union's funding programme as stated by Khan.

Another charge by Khan that the ministry had to pay some $6 million above the engineer's estimate on the street lights along the East Coast Demerara from the Russian Embassy to Better Hope, Xavier described as false.

He said Cummings Elec-trical Co Ltd was awarded the contract for $13 million and was eventually paid $19 million but pointed out the engineer's estimate was $21.8 million.

The minister said the extra $6 million above the amount awarded went towards works such as installing extra cables and the modification of the base due to unforeseen ground conditions.

He said the primary line belonging to the Guyana Power and Light Company had to be extended so that the transformer could be placed closer to the road as part of the safety requirement.

Some resurfacing also had to be done to the road. He also dismissed the allegation that half of the lights were not working.

Xavier stated that the ministry did not spend money "willy-nilly" and invited those who were interested to go in and examine the records.