Former Minister of Works Neko Grant said yesterday it is "inconceivable and unbelievable" that the government executed a contract with a contractor who did not have all-risk insurance. Grant was referring to the recent revelation that there is no evidence that the male dormitory at the Bahamas Agriculture and Marine Science Institute (BAMSI) that was set ablaze on January 15 was ever insured.

According to information on the file of the Ministry of Works, there was an insurance quote from a local insurance company, but there was never an insurance certificate. The contractor was issued checks based on that quote, The Guardian understands. But the ministry has no evidence that the insurance was ever paid.

"A quote from an insurance company is insufficient to satisfy the policies and procedures that are in place," Grant said. "For them to suggest that they would have issued a contract based on a quote from an insurance company is unacceptable. Some persons have to resign. It is utter nonsense."

Grant said before a contract is executed, the contractor must provide proof that he has all-risk insurance and that his company is compliant with national insurance. In essence, the contractor must present an insurance certificate and a letter of compliance from the National Insurance Board at the time the contract is signed and "before he gets a dime of the people's money", Grant said.

The Central Grand Bahama MP said there are a number of safeguards to prevent such incidents, mainly vetting by the project manager, the director of works and the permanent secretary in the Ministry of Works. Grant said Deputy Prime Minister Philip Brave Davis must answer how such an incident could happen or do the honorable thing and resign.

"This situation stinks," he added.

In the House of Assembly two weeks ago, Davis claimed the contractor allowed the insurance to lapse. According to Davis, at the time the contract was signed, the contractor had everything that was required to contract work including contractor's all-risk insurance.

The contractor said he was under the impression the building was insured at the time of the blaze. Audley Hanna, president of Paradigm Construction, said the building is insured with Southern Alliance. He admitted that if the dorm is not insured he would have to "find the money to build it back".

The Guardian searched the Insurance Commission of The Bahamas' website but did not find the name of the company listed. A senior insurance broker in the country also told The Guardian that she had never heard of the company. Fourteen contractors have been hired to work on various aspects of the project.

Grant has demanded that the government table all contracts related to BAMSI and proof of insurance. Since taking office, the government has billed BAMSI as an important initiative to cut the nation's dependence on food imports. Over $20 million has been invested in the North Andros project so far, according to government officials.

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