The Government Information Agency (GINA) said Cabinet felt that both the executing/supervisory agency, which is the National Drainage and Irrigation Board (ND&IB) of the Ministry of Agriculture, and the contracting firm, BK International Incorporated, were culpable.

GINA said, too, that Cabinet has recommended penalties and remedial action and the Attorney General's Chambers is to tender legal advice on these.

GINA said more details "will be made public shortly".

The report on the investigation into the Cane Grove breach last November and the response of the ND&IB to the probe team's findings had been engaging the attention of Cabinet before yesterday's decision.

Head of the Presidential Secretariat and Cabinet Secretary, Dr. Roger Luncheon told his weekly post-Cabinet news conference Wednesday that Cabinet had received the ND&IB's response last week Friday.

He said, then, that Cabinet was to closely scrutinise three major aspects of the "troubled project" to rehabilitate the conservancy dam. The areas were the design of the work to be done, the responsibility of the ND&IB as consultant and as supervisor, and the role of the contractor.

The $150.8M project was awarded to B&K International for rehabilitating a section of the dam from Annandale to Cane Grove, East Coast Demerara over a 15-month period. Works started on February 28, 2000 and ended on May 28 last year.

However, a section of the structure at Cane Grove was breached during the early hours of November 3, 2001.

"Cabinet's consideration of the issue was not helped by the non-submission by the contractor, directly or through the ND&IB, of any formal reaction to the findings of the investigating team," Luncheon had said.

Consequently, Cabinet resolved at its last meeting to continue deliberations, which started Tuesday, until (yesterday) "when a decision on the proper course will be made," he had said.

The 40-foot breach resulted in flooding of agricultural and residential lands, affecting about 4,000 residents, or an estimated 700 families.

Several Government officials, including President Bharrat Jagdeo visited the community to meet residents, the Government immediately gave $5M in emergency relief while the Ministry of Finance allocated $15M for assisting affected villagers. Some $1.6M was handed out to residents who claimed damage of less than $30,000 while higher claims were paid from the $15M for assisting affected villagers.

The breach has long been sealed and the Ministry of Local Government and Regional Development has set aside $5M to upgrade roads damaged during the flooding.

Subsequently, the President appointed the investigating team which was headed by Director of Agricultural Services at the Guyana Sugar Corporation (GUYSUCO), Mr. Harold Davis, Jr.

The other members were Chief River and Sea Defence Officer, Mr. George Howard, Director of Caribbean Engineering and Management Consultants (CEMCO), Mr. Raymond Latchmansingh, Mr. Paul Sarran of the Mahaica/Mahaicony/Abary Agricultural Development Authority (MMM/ADA), and Colonel John Lewis of the Guyana Defence Force (GDF).