‘Penalties coming’ – President puts defaulting contractors on notice

President Dr. Irfaan Ali on Sunday gave a stern warning to defaulting contractors, telling them that the government will pursue the requisite actions for any breach of contracts.

“No one who breaks the law or who does not fulfil their contractual obligations to this country will be allowed to do so.

“We’ve made it clear to all Permanent Secretaries and ministers that the law must take precedence and whenever liquidated damages must be charged, it will be charged,” Dr. Ali said as he addressed the People’s Progressive Party Civic (PPP/C) memorial event for the Jagans in Port Mourant, Berbice, on Sunday.

Liquidated damages refers to a provision allowing for the payment of a specified sum in the case of a breach of contract.

The President was at the time responding to critics of his government, noting that the PPP/C administration is not afraid to accept that challenges exist.

“We don’t hide from the facts,” Dr. Ali said.

He, however, added that there are external factors to consider such as global supply chain challenges, the COVID-19 pandemic, the food crisis and droughts.

Several government-funded projects have encountered delays. Last week, Public Works Minister Juan Edghill visited several road projects, including the Conversation Tree to Dennis Street expansion and the Cemetery Road projects, which are delayed. He warned that there would be sanctions for defaulting contractors.