The Works Ministry has found work for close to half of the workers "laid off by ProActive Management Systems Ltd," a Government press statement said yesterday.

"The workers will shortly join other Contractors working on various Government jobs, or as 'contract workers' within the Ministry of Works and Engineering and Housing itself."

The statement added that Government was in talks with other construction industry employers and thanked those who have taken on some of the workers.

"The Government said that although the Ministry of Works and Engineering and Housing is entitled to take possession of all the equipment and machinery owned by the Contractor that was on site when the contract was terminated, the Ministry is instead, without prejudice to any of its rights under the contract, looking closely at what equipment will be required to complete the project so that other equipment that ProActive might use on any of their other construction sites, can be released to them as soon as possible," the statement continues.

It added that Government was "saddened" by "scurrilous" allegations that "senior civil servants involved in the management of the contract may have relationships with competing companies or large contractors who have tendered along with ProActive."

Government is required, under the terms of the contract, to provide information to subcontractors working on the new senior secondary school, the statement continued.

ProActive had called for a public inquiry into the circumstances of the contract, and a spokesman said that the inquiry should probe, among other areas "the role played by various civil servants in the management of the contract and their relationship, if any, to competing companies." Yesterday the company also complained that Government would tell subcontractors that monies had been paid to the company specifically for them - making it difficult to manage their cash flow.

"The Architect is required to furnish to a Subcontractor, information regarding percentage completion or amounts applied for by the Contractor, and action taken thereon by the Ministry of Works and Engineering and Housing (as Architect), and Government (as Owner) on account of portions of the work done by such Contractor," the DCI statement said.

"Therefore, any information provided by the Ministry of Works and Engineering and Housing to Subcontractors regarding funds paid to ProActive on the Subcontractors' behalf, was in accordance with their obligations under the Contract."

ProActive's contract to build the new school ended last week when Government decided to terminate the contract.

Yesterday the company, which is planning to pursue damages for wrongful termination had no immediate response to the latest statement from Government.