The bond insurance in place is adequate to complete the project but it will be at least two months before it can re-commence due the ongoing negotiations between the HSE, the receiver, sub-contractors and the bond insurance company.
Donegal Sinn Féin Councillor Pádraig Mac Lochlainn has called on the HSE and the Government to wrap up negotiations and ensure the project is completed as soon as possible.
Works at the new hospital building stalled last November when the builders, McNamaras Construction were declared insolvent and Declan Taite of FGS Accountants was then appointed as the receiver.
Following talks with the HSE today, Cllr Mac Lochlainn has received confirmation that Cllr Mac Lochlainn made the call and engaged in renewed talks as staff and patients alike again endured intolerable conditions at the existing A&E ward over recent days.
“It was outrageous in the first place that the Government and the HSE did not have a legal clause protecting the tax payer and the sub contractors from the likes of McNamara Construction defaulting on their contract and responsibilities.
“It was no secret that McNamara Construction were in serious financial difficulties. Indeed the state asset company NAMA were dealing with them while the other arms of the state gave them more and more public contracts”.
“It is now apparent that critical months will be lost to the tax payer and more stress and hardship delivered to staff and patients because of the Governments inaction. Furthermore, many sub-contractors are severely out of pocket and jobs lost”.
“Serious lessons have to be learned from this fiasco and I am calling on the Government and HSE to expedite negotiations and complete the new Hospital building at Letterkenny as soon as possible.”