— Opposition Member of Parliament Ganesh Mahipaul has raised serious red flags over the government’s acquisition and management of the MV Hercules, a vessel currently plying the critical Essequibo to Supenaam route. Speaking on a weekend program, Mahipaul alleged that the Ministry of Public Works is effectively paying a private company to operate a boat that the state already owns.
The revelation has sparked a new wave of criticism regarding procurement transparency and the management of state resources within the maritime sector.
The “Third-Hand” Vessel and the $180M Tag
According to MP Mahipaul, the Ministry of Public Works purchased the MV Hercules for approximately $180 million Guyana Dollars. However, the MP described the vessel as “old” and “third-hand,” questioning the valuation and the necessity of the purchase.
The Larry Singh Connection: Mahipaul identified the seller as a company owned and operated by businessman Larry Singh. He questioned why the Ministry chose to engage in such a high-value transaction for an aging asset, suggesting that the deal appeared more like a “facilitation for a friend” than a strategic infrastructure investment.
Ongoing Costs: $12 Million Monthly “Operating Fee”
The most “startling” aspect of Mahipaul’s claim involves the post-purchase operating agreement. Despite the boat becoming the property of the Ministry, the MP alleges that the government continues to pay the original seller a massive monthly fee.
- Operational Fee: The state reportedly pays the private company $12 million monthly to operate the vessel.
- Minimal Input: Mahipaul contends that the company’s only responsibility is providing four crew members and paying their salaries—a cost he argues is far below the $12 million payment.
- Liability Loophole: Crucially, the MP revealed that the Ministry remains responsible for maintenance and repairs. If the boat becomes defunct, the state foots the bill, while the private company continues to collect its fee.
“What makes this boat… more special than the other boats that the Ministry has?” Mahipaul questioned. “The Ministry could have employed persons, trained them, and operated the boat under the Transport and Harbours Department. Instead, they gave it back to the company to operate.”
“Wastage and Corruption”
Mahipaul argues that this arrangement is a clear example of the “wastage of the country’s resources.” By failing to integrate the vessel into the existing Transport and Harbours Department (T&HD) fleet, the government is accused of bypassing established institutional structures in favor of a private, high-cost contract.
Attempts by reporters to reach Minister of Public Works Juan Edghill or officials from the T&HD for comment on these allegations proved unsuccessful.
The Wider Context
This allegation comes at a time when the Ministry of Public Works is under heavy scrutiny for its $227.2 billion 2026 budget allocation. Critics argue that without stricter oversight on “operational contracts” like the one for the MV Hercules, massive portions of the national budget are being drained into inefficient public-private arrangements.
