CIG picked wrong bidder in scrap metal tender

| 30/11/2016 | 37 Comments

(CNS): The government ended up awarding a scrap metal contract to the wrong bidder because it focused purely on the price offered by one contractor rather than on experience and ability. The Office of the Auditor General has highlighted that the price tag can sometimes disguise other problems and that getting value for money for the public purse does not always mean going for what appears to be the cheapest deal. In a special interest report the OAG found that the Department of Environmental Health should have awarded a 2013 contract to Island Builders and not Cardinal D.

Government has faced an ongoing issue of dealing with the enormous amounts of scrap metal, largely fueled by the damage caused in Hurricane Ivan some 12 years ago. The OAG report looked at the last contract in a long line of deals that failed to prove as lucrative as government had hoped.

In the first report signed off by the new auditor general, Sue Winspear, the auditors found that the technical committee reviewing the two bids gave too many points to the wrong firm simply because of the price tag per ton of scrap metal, and as a result the contractor that secured the bid took too long and did not complete the job.

The auditors make it clear, however, that there appeared to be no inappropriate or intentional selection of Cardinal D over Island Builders for the contract, which was awarded just before the government handover from the previous administration to the PPM.

The auditors found that the technical committee members and the civil servants involved in the Evaluation Summary and Tender Award Recommendation (ESTAR) report simply gave too many points to Cardinal D for the higher price per ton on offer when their competitors, Islands Builders, had better equipment, more relevant experience, a proper line of credit to cover the highest potential amount of metal, were more compliant with labour and pension laws and had the right equipment.

The report also found that Cardinal D’s previous failures on two earlier and separate scrap metal removal contracts appeared to have been overlooked, and the auditors wrote that they “failed to deliver the minimum level of scrap metal removal despite being afforded two contract extensions”.

In a release about the report, the auditors stated that there were still opportunities for government departments to improve how officials carry out the process of tendering. But the new auditor general remains hopeful that the recent changes in government management systems and the introduction of new procurement legislation will see marked improvements.

“Recently, there have been some very positive developments that promote more effective procurement practices, including the passage of new legislation and the creation of a Central Procurement Office,” said Winspear. “This report identifies opportunities for better guidance to government officials involved in the acquisition of goods and services.”

See the full auditor general report in the CNS Library

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Category: Government oversight, Politics

Comments (37)

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  1. Anonymous says:

    The report is flawed in saying there were only 2 tenders submitted There were at least 3 because I submitted one, It must of disappeared.

  2. Anonymous says:

    False beliefs have negative consequences and christianity in history has shown this to be true.

    • Anonymous says:

      This would also apply to your very own statement since it is an opinion with no cogent argument.

  3. Jotnar says:

    Headline should read electorate chose wrong government, not that government chose wrong contractor. Its sad to think that assuming incompetence is the best case here.

  4. MM says:

    Whether the PPM or the UDP (or the independent that feels the LA is the fastest way to make a 6-figure salary) – they all flatter with words to fatten their own pockets, show me the man (or woman) that runs for election and denies the salary for the opportunity to make a change in their country, then I will believe their intentions are purely for “love of country”.

    Despite everyone who enjoys jeering that “4 thousand year old book”, it is funny how accurately (and how many instances) it warns people about corrupted leadership and provides accurate notes on how to identify their BS or the signs of a nation that is held in the clutches of corruption and corrupted leadership.

    I would say, the Cayman Islands (and every other earthly nation) fits the descriptions accurately. Now, what other scriptures within that “4 thousand year old fantasy novel” are accurate and coming to pass I wonder?

    2 Timothy 3:1-5 You must realize, however, that in the last days difficult times will come. People will be lovers of themselves, lovers of money, boastful, arrogant, abusive, disobedient to their parents, ungrateful, unholy, unfeeling, uncooperative, slanderous, degenerate, brutal, hateful of what is good, traitors, reckless, conceited, and lovers of pleasure rather than lovers of God. They will hold to an outward form of godliness but deny its power. Stay away from such people.

    Proverbs 29:4 A just king gives stability to his nation, but one who demands bribes destroys it.

    2 Peter 2:3 And in their greed they will exploit you with false words. Their condemnation from long ago is not idle, and their destruction is not asleep.

    • Anonymous says:

      MM Are you telling me that you would refuse that salary and let your family suffer just to be seen as putting country first? I don’t think so.

      • MM says:

        There is a reason US presidents have to be financially self-sufficient before even considering running (other than the fact the campaigns cost millions).

        Electing individuals who are capable and already financially stable and not reliant on a “day-job” salary means there is less opportunity to bribe them or that they will pass approval on a croony contract (or law/amendment) for a profit share or perk.

        And yes, I surely would, because my family would not be relying on a political salary to eat; that is, if I had any interest in politics beyond spending hours reading its historical origins and subsequent influence on today’s political environment – this simply to prepare myself (and my family) through knowledge for the unprecedented, global economical and political mess that is becoming more prominent daily and still has not climaxed.

        The primary goal of an LA member should not be to secure the seat for the income to feed their family; but to secure the seat to ensure the future of their country through proper operations and governing of their country and in turn, they are then able to secure their own family’s, as well as everyone else’s livelihood and families. If that is not their case, they should have kept their day-jobs.

        The reason they continuously run for MLA over and over again is because many are very well aware there is no company on-island that would hire them on a salary equal to what they are earning and a “common job” would not allow for the perks and opportunities they receive as well as the power to direct their own fate in business.

    • Anonymous says:

      13:6 If thy brother, the son of thy mother, or thy son, or thy daughter, or the wife of thy bosom, or thy friend, which is as thine own soul, entice thee secretly, saying, Let us go and serve other gods, which thou hast not known, thou, nor thy fathers;
      13:7 Namely, of the gods of the people which are round about you, nigh unto thee, or far off from thee, from the one end of the earth even unto the other end of the earth;
      13:8 Thou shalt not consent unto him, nor hearken unto him; neither shall thine eye pity him, neither shalt thou spare, neither shalt thou conceal him:
      13:9 But thou shalt surely kill him; thine hand shall be first upon him to put him to death, and afterwards the hand of all the people.
      13:10 And thou shalt stone him with stones, that he die.

      Such a peaceful religion.

      • MM says:

        Well, considering it was written by primarily unknown authors, more than half its texts are lost, stolen or secretly held and our currently publicized version was commissioned and compiled in to existence by a questionably sane king, I should think it is safe to say we should all be expecting some rather cynical and outrageous entries therein.

        Like any and all pieces of historical literature (or even modern theology), it is up to the reader to discern, appreciate, apply and/or disregard what their own conscience and upbringing indicate is inappropriate and unnecessary or sensible and applicable.

        The verses you quote, for example, by all means in our modern society is highly inappropriate and unnecessary no matter how many of us have family members who have directed their sights on things that we all admittedly may prefer to see them severely punished for (though perhaps not to the extent of lifelessness).

        In fact, a verse you should check out, is this one:

        “Hebrews 5:14 ESV
        But solid food is for the mature, for those who have their powers of discernment trained by constant practice to distinguish good from evil.”

        I have been in constant debate with pastors and Christians about the completeness of the Bible we have in circulation these days, of course no one has the gall to admit or question it when they are pew-warming each week.

        But, if the originally commissioned Bible was 80 books and we now have 66, and the scriptures have been adjusted and “modernized” on hundreds of occasions, ANY person that approaches me who believes it is “God’s will” in its entirety as pertaining to present life is not quite worth the effort of convincing otherwise.

        Death-penalty verses aside – the Bible contains very logical, sensible and thoughtful lessons on every human subject of which many of these lessons were reinforced through scientific and psychological studies at various points in time.

        Pin-pointing that ridiculous excerpt from Deuteronomy does not discredit the other numerous entries that are most applicable and helpful and that have assisted billions of people throughout history in navigating this not-so-perfect life on planet earth.

        • Anonymous says:

          They could have been more original in the creation myth, the flood myth nicked from Gilgamesh and the Jesus-as-zombie resurrection plot twist taken from the story of Horus. These were big set pieces in a work of fiction and sadly they were plagiarized.

          • Anonymous says:

            The cosmic jewish zombie myth, it’s a classic.

          • MM says:

            Whether the existence of Jesus is indeed accurate or not I am sure none could dispute that this world would be a far less hostile place if everyone in it adopted a “what would Jesus do?” mentality.

  5. Anonymous says:

    To sum up the OAG report – Not one lesson learned from the Matrix scandal.

  6. Anonymous says:

    There are several candidates planning to run for election in May 2017 that have earned a lifetime ban from politics, yet are cleared to run again and again. More people would participate in our election process if what needed to happen actually happened. It’s not hard.

  7. Anonymous says:

    Should be reviewed by the Anti Corruption Board

  8. Anonymous says:

    another glorious day for the civil service….

  9. Anonymous says:

    When all the bidders suck you hold your nose and pick one. Performance bonds are one solution, but only if there are bidders with the financial wherewithall to obtain a bond.

  10. Anonymous says:

    So CIG employ the cheap and inexperienced over skills and experience that offers better value for money. Go figure, perhaps the HR depts need to take note and employ the best, not the cheapest or base quality on nationality alone.

    • Jotnar says:

      Of course, basing selection on nationality does not necessarily equate to quality as opposed to regulation.

  11. Anonymous says:

    Thank Godness all of this is in the past..

  12. Anonymous says:

    Was there anyone in Government at the time that was related to the principals of Cardinal D? If so therein may lay the answers.

  13. Once again says:


  14. Anonymous says:

    “were more compliant with the labour and pension laws?” You mean there are degrees of non compliance with Cayman Law and acceptable levels of employee abuse in order to gain a government contract?

  15. Anonymous says:

    I think it will be found that the people behind Cardinal D are longtime supporters of the UDP government.

  16. Anonymous says:

    More compliant? Is this the same Island Builders who were just up on charges for failing to pay pensions on over 50 employees?
    Sounds like some real good choices.
    I thought all companies must be compliant with all health, pensions, business & trade licenses and worker compensation insurance laws which are on the books?
    This whole process of cheap & cheaper. Look at the school fiasco?

    • Anonymous says:

      This company is very good. The pension & health laws are really dragging businesses down with all these regulations. Let free enterprise work. Get rid of health, pension regulations as well as all the other stupid employee laws and you will see business boom.

      • Anonymous says:

        I agree entirely as all these regulations are just making it way too expensive. We can get the work done way cheaper to get rid of the stupid pension & health insurance on all work permit people, let them work independent and what the market will take; example just tell them paying $10.00 no overtime or any other of these stupid regulations and you will see how quick they will jump on it. This way we get the work done cheaper but government still gets the work permit fee. The business will flourish and the cost of building will drop dramatically. Time to catch up with the real world.

  17. Veritas says:

    A classic example of civil service incompetence. Given the facts it stretches the realms of plausibility that there was no ulterior motive in the selection and clearly the AG considered this must have been a possibility although there was no direct evidence of this.

  18. Anonymous says:


  19. Anonymous says:

    UDP strikes again!

    • Anonymous says:

      Did you read the Auditor General’s report? The report from ESTRA was concluded after the 2013 election. The first cheque was issued after the 2013 election. The date the bid was awarded was after the 2013 election. So how was this UDP striking again?

      • Anonymous says:

        “…the contract, which was awarded just before the government handover from the previous administration to the PPM”

      • Anonymous says:

        This was in the works long before the election and the people behind the company are longtime supporters/members of the UDP.

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