BK Int’l, Nafico facing multi-million lawsuit from the State
Construction firm, BK International Inc., and its insurance company, North American Fire and General Insurance Company (Nafico), is now facing a multi-million-dollar lawsuit intuited by the State for breach of the contract for the construction of the Yarrowkabra Secondary School, on the Soesdyke/Linden Highway.
In court documents seen by the News Room, the Attorney General’s Chambers instituted the joint lawsuit against BK International and Nafico in sums surpassing $700 million.
The State is seeking payments for damages, refunds and other sums owed totaling over $717 million.
Within that sum, the State is claiming $100 million in general damages and $82 million in liquidated damages. The State claims that another $82 million is payable by BK for underperformance bonds issued by Nafico for the contract agreement and $165 million for advance payments.
Another $137 million is being requested for restitution for works already paid for but not executed; $50 million for trespassing, and $100 million for breach of contract. The States also wants the court to issue an Order of Restitution against Nafico for all monies owed on the advance guarantee and performance bonds to the Government of Guyana.
Back in November 2020, BK International was ordered to vacate the construction site where the school was being built after which the Ministry of Education took full control.
The $826.7 million contract, signed with BK International in January 2020 for the construction of the state-of-the-art school, was terminated after an assessment found only five per cent of the school was completed.
The school is intended to benefit some 600 children in Yarrowkabra and neighbouring communities along the Linden Highway. It was expected to be completed in March 2021.
Minister of Education, Priya Manickchand in recognising the slothful construction, had engaged the company and requested a new work plan that would see it completing the school within the stipulated time
The consultant on the project, Vikab Engineering Consultants Limited, had advised BK International to employ more persons to get the work done but this, among other suggestions, were unheeded. As such, the government was forced to terminate the contract with the company.
The company was informed of the termination on November 1, 2020 in a letter from Attorney General and Minister of Legal Affairs, Anil Nandlall, SC.
In the said letter, the contractor was advised to remove all machinery and equipment from the site. But on November 10, a visit to the site revealed that the company was still progressing with works despite the contract being terminated.