Govt sues BK Int’l for over $700M for breach of contractual works on Yarrowkabra Secondary School 

The government has filed a lawsuit against BK International Inc., in which it is seeking more than $700 million in general and liquidated damages and monies being owed and payable for breach of contractual works on the Yarrowkabra Secondary School.
Apart from BK International, Attorney General Anil Nandlall has also named the North American Fire and Life General Insurance  Company as a respondent.

In a Statement of Claim filed today at the Victoria Law Courts, Nandlall stated that on December 31, 2019, a written contract was entered between BK and the Education Ministry for the construction of the school on the Linden/Soesdyke Highway.

According to the lawsuit, BK International was first paid an advance payment $165, 351, 547, which was made in three parts on the basis that the company would submit an advance payment guarantee issued from the above-named insurance company.

Construction of the school was expected to be completed within 12 months from the signing of the contract.

Nandlall submitted that VIKAB Engineering Consultants conducted an assessment and found that only five per cent of the works had been executed after five months- almost half of the contract duration.

Having regards to the foregoing, Nandlall contends that BK International failed and or neglected to complete the scope of works in accordance with the contractual work execution schedule.

As a result, the Attorney General stated that he wrote BK International on November 01, 2020, informing the company that it’s contract had been terminated, and the worksite must be vacated with immediate effect.

BK International, however, remained on the worksite for approximately one month thereafter preventing the Education Ministry from assuming controls and possession of the said site, Nandalll added.

“To date, another contractor has not been secured to complete the said contract and the Education Ministry is unable to provide a secondary school for the community of Yarrowkabra,” Nandlall submits.

The Government is also seeking damages for trespass against the construction company  and an Order of restitution against the insurance company for all monies owing on the advance guarantee and performance bond.

Moreover, the Government is also asking the court to award interest on all damages awarded; court costs and any further order the Court deems just in the circumstances.

At the time of the signing of the contract questions arose as to whether the APNU/AFC Government could have entered into such an agreement since it was in caretaker mode having been defeated by a no confidence motion.

BK International CEO Brian Tiwarie was present at the signing and assured that all works would be completed within the stipulated time on the school which was expected to house 600 children and boast modern amenities.