Minister for Works Michael Nali has warned contractors and service providers submitting false claims to the Department of Works that their days are numbered.
Minister Nali issued this warning after the Department saved more than K486 million from claims that were suspicious and unsubstantiated after successfully defending those claims through the courts.
He said so far 19 court proceedings for claims totaling K486.1million was taken against the State by contractors and service providers after the Department declined to pay them.
Mr Yali said service providers have colluded with officers and representatives of the Department to submit massive claims that are unsubstantiated.
He said that after careful verification and vetting processes, the department had declined to pay them, resulting in those claimants going to Court to seek redress.
Mr Nali said they instructed their lawyers to defend 19 court cases against the State and they have successfully defended the 19 court cases, saving the state K486 million.
Among the 19 claims, the latest was a case against Lorma Construction who had claimed for K42 million after everything was paid for a contract entered on April 11th 2007, for rehabilitation of a section of the Highlands Highway from Ialibu Junction (Kisenapoi) to Angula Bridge in Southern Highlands at cost of K54.658 million.
He said the State had paid K45.20 million for the works completed with the balance of K9.69m yet to be paid.
However, Lorma Construction submitted clams for certain unpaid monthly progress payments, interest on delayed payments costing more than K52 million, subsequently increasing the claim to K79 million but the Department refused to pay as claims were not supported by evidence.
Minister Nali said during attribution, Lorma further increased its revised claim of K79 million to K135 million and the department opposed and objected the increase.
However, through an approval from the National Executive Council, the State offered to pay Lorma K15m plus cost and Lorma accepted the offer.
After accepting the K15m plus cost, Lorma claimed for K42 million but the court dismissed Lorma’s claims last Wednesday.
Some of the claims dismissed include substantial amount of money.
“The Department of Works is not a place for corrupt dealings but we will deal with contractors transparently and prudently,” said Works Secretary, David Wereh.
He said they will be going through all the other claims and verify them accordingly.