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Government urged to halt a contract with company CNI22

Source
Dili Weekly - December 18, 2013

Paulina Quintao – NGO La'o Hamutuk's representative Charles Scheiner urged the Timor-Leste government to halt two contracts to the Chinese Nuclear Industry Construction No. 22 (CNI22) Company that was awarded funds totaling $1,047,559 to provide tables and chairs for schools, as this company does not have experience in the delivery of the equipment.

Based on information from the National Commission for Procurement (CNA) published to ask the public to comment, it showed the government intends to award two contracts to CNI22 Company of $803,049 to supply small and big chairs for schools in Lautem, Viqueque, Baucau and Manatuto Districts and another contract worth $244,510 to provide chairs and plastic tables for schools across the territory.

According to Scheiner CNI22 Company is undeserving of getting the contracts from the government because he deems the company incapable to undertaking the task.

"There is no evidence CNI22 Company has experiences in the supply of tables and chairs. It is not a business. They just find opportunities to get money," said Scheiner.

He added there is no need to award projects to international companies when there are local companies capable of implementing the projects and that many schools in the country use tables and chairs supplied and distributed locally.

Scheiner also raised concerns with the government blacklisting of national companies. "These companies should not be blacklisted. We don't understand why the Timorese government blacklists national companies while international companies aren't."

La'o Hamutuk's researcher Adilson da Costa also questioned why the government does not award contracts to local companies and why international companies are in charge of all big projects.

"Concerns have already been raised about the way in which CNI22 Company implemented the electricity project in Timor it was awarded. The quality of the work has also been questioned," said researcher Da Costa.

In October 2008 the government of Timor-Leste awarded a contract to CNI22 Company valued at $367 million to build a power plant.

According to Researcher Da Costa, the company failed many times to fulfill its commitments on time, the quality of the materials used was in question, had issue with hiring locally, did not provide a safe working place for workers and did not do adequate environmental management. In the end when it could not complete the work the government handed over the implementation of the works to another company Puri Akraya Engineering.

NGO La'o Hamutuk submitted a formal complaint letter to the National Procurement Commission (CNA) that has oversight over big government projects.

Meanwhile the Director General of the Ministry of Education, Antoninho Pires, said the tendering process for the supply of tables and chairs was divided into five line items, with four of these to be processed through the CAN and one line item of less than one million dollars processed by the Ministry's procurement system.

"I cannot comment on the process used by the CNA to tender its projects because they have their own system," said DG Pires.

He said also the total budget allocated to purchase tables and chairs out of the 2013 State Budget was of $3.5 million. TDW tried to get confirmation on the above issues with the Director of Procurement of the National Commission of Procurement but was refused.

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