US AID contractors under investigation

mountainannie

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Dec 11, 2003
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elizabetheames.blogspot.com
Subject: leiderman: caracol: another housing contractor suspended

"The investigation concerns faulty construction practices related to 750
houses
built in Caracol, Haiti by USAID."

Thanks to a colleague for this head's up about the continuing
multi-million dollar
waste and suffering caused by USAID's housing contracts in and around
Caracol in
northern Haiti. Not mentioned in the article is that there are another
five million
dollars out on the streets to a third firm, Tetra Tech, assigned to fix
the mess
that the first two contractors made over the past few years.

Being that the funds, contracting decisions and oversight come from the
American
government, Haitian-Americans have particular leverage if they choose to
use it.
Being that the main contractor was Haitian-led, there is an additional
reason to
flex some corrective muscles. Being that all this occurred during the
term of a
Secretary of State who has just announced her candidacy for
President...well, you
might imagine she wished they never honeymooned in Haiti. But if they return
someday to renew their vows, they can have their choice of about eight
hundred
bungled bungalows with a scenic view of the north coastal floodplain.

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Haiti: Second USAID Contractor Suspended Following Caracol Housing Debacle | Global Research - Centre for Research on Globalization

Haiti: Second USAID Contractor Suspended Following Caracol Housing Debacle
By Center for Economic and Policy Research
Global Research, April 13, 2015
Center for Economic and Policy Research 30 March 2015

On March 25, 2015, USAID suspended CEEPCO Contracting ? which had been
working on
shelter programs in Haiti ? from receiving further government contracts,
pending the
outcome of an ongoing investigation. CEEPCO joins Thor Construction, which
was
suspended in early February. The investigation concerns faulty construction
practices related to 750 houses built in Caracol, Haiti by USAID. CEPR
Research
Associate Jake Johnston reported in February for VICE News:

CEEPCO?s CEO is Harold Charles, a Haitian-American who was formerly
one of the
Haitian government?s representatives to the Interim Haiti Reconstruction
Commission (IHRC), run by Bill Clinton and meant to be in charge of the $10
billion in earthquake relief. The IHRC had initially approved the USAID
shelter
program back in December 2010.

Charles also enjoys a close, personal relationship with Haitian
President Michel
Martelly. In an interview in 2013, Charles said, ?I do know and have very
close
friends up through the highest ranks of government,? adding, ?Martelly is a
childhood friend of mine.? One former government official in Haiti said in an
interview, ?this was seen as a deal that would please Martelly.?

Despite the initial assessment in August, 2014 that revealed the construction
problems, USAID extended CEEPCO?s contract for work at other shelter sites
in Haiti
this past January. CEEPCO?s contract for the Caracol site was awarded without
competition. A Freedom of Information Act (FOIA) request for the
justification
document is ongoing. A FOIA request for the initial assessment documenting
the
problems with the houses was recently responded to, but USAID withheld the
entire
document that was sought, citing the ongoing legal investigation.

Though the investigation continues, many thousands of Haitians continue to
live in
the poorly constructed houses. A contracting document from November, 2014,
stated
that repairs must be ?carried out immediately in order to prevent possible
harm to
residents.? But it is unclear if meaningful remediation efforts have taken
place.
An internal document reveals that many of the identified problems would
require
serious structural work to the houses.

In November, Tetra Tech, another U.S.-based firm, received a $5 million
contract to
oversee the repair efforts. The firm has been performing structural
evaluations of
the houses in anticipation of a future legal suit. One draft document,
prepared by
Tetra Tech and obtained by HRRW, details 29 instances ?of material
substitutions,
field design changes, lack of quality assurance/quality control (QA/QC)
and lack of
quality workmanship.?

Among the myriad problems: concrete blocks far below required strength;
drainage
pipes not installed as designed; water and sewage pipes not separated;
lack of
ventilation blocks; wrong materials used for roofing; wrong materials used
for
framing; as well as more cosmetic deficiencies.

Image from internal USAID document, showing sub-standard concrete used.
http://www.globalresearch.ca/wp-content/uploads/2015/04/Caracol_Concrete.jpg

This is also revealing as it shows CEEPCO was aware of the substandard
materials
used by the construction contractor, Thor. CEEPCO was responsible for
construction
management as well as some site work, such as water and sanitation.
Although CEEPCO
managed to hold off USAID for a few months longer than Thor, both contractors
responsible for USAID?s model housing program have now been suspended.

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