AG slaps S. Maraj Contracting Services with over $400M lawsuit for Leguan Stelling
After a two-year delay in completing rehabilitation works on the Leguan Stelling, and weeks after the contract was finally terminated with S. Maraj Contracting Services, the government has moved to the court to recover monies already expended.
In a suit brought against the company by Attorney General and Minister of Legal Affairs, Anil Nandlall, SC, the company is being sued for a sum well in excess of $400 million.
The government is seeking general damages in excess $100 million, another $41.3 million as liquidated damages and $41.3 million as the sum due, owing and payable under the performance bond issued by the insurance company, Assuria General.
Further, Nandlall has asked the High Court for the company to pay an additional $81.3 million under the Mobilization Bond issued by the insurance company and for an Order for Restitution in the sum of $81.3 million.
He also wants aggravated damages in the sum of $100 million. The government had terminated the contract back in February 2021 after it said that a thorough review of the project has determined that the company is “incapable, unable, and does not possess the wherewithal to successfully execute this project valued at $413,259,260.”
Since the contract was signed on September 20, 2018, under the previous administration, the contractor received payments totaling $199,435,000, which is almost 50 per cent of the overall contract sum.
To this date, the rehabilitation works on the Stelling, which commenced back in 2018, remain incomplete. The works should have been completed by early 2019.