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NICIL takes Guyana Stores to court over unpaid balance

Mar 15, 2011 News

The High Court action between the National Industrial and Commercial Investment Limited and Royal Investment Inc. which owns and operates by Guyana Stores, was again called up before Justice Roxanne George-Wiltshire, yesterday.
Royal Investment Inc. is headed by proprietor Tony Yassin. NICIL is being represented by Rafiq Turhan Khan, while Yassin is being represented by Senior Counsel Rex Mc Kay, Edward Luckhoo and Mr. Sasenarine.
Royal Investment Inc. has been sued by the Privatisation Unit/ NICIL for failing to pay the balance of US$2 million for the 70 million shares in Guyana Stores which the company acquired for US$6million.
At yesterday’s hearing, head of the Privatization Unit Winston Brassington was examined by Khan with regards to an audited report.
Under cross examination, Brassington was further questioned about the agreement of sales whereby the Unit agreed to sell the Royal Investment Inc. 70million shares in Guyana Stores Limited for the sum of US$6 million.
He explained that the term of the sale agreement specifically dated October 4, 2000 highlighted that the balance of US$2million would be paid by Royal Investment on or before September 30, 2002.
Brassington later explained that Royal Investment Inc. was supposed to pay interest on the US$2 million at the US prime rate commencing one year after September 2000. He also noted that RI had one to three years to pay the balance to which they have failed.
Senior counsel Rex Mc Kay questioned the head about various documents.
One of the documents included an Annual Report for 1999 which indicated that the unit had recommended that Guyana Stores apply for a $300 million loan to offset some expenses.
This suggestion was not refuted by Brassington, but he explained that the loan never materialised.
Brassington was grilled about the minutes of the board of directors meeting dated December 23, 1999, which also included Brassington’s address to that meeting. On the agenda was the $300 million loan which was actually taken to pay shareholders as shown in the annual report of 1999.
Lawyer Khan objected to Brassington being questioned about the minutes since he was not given a chance to inspect nor did his client ever see the document.
The lawyer objected to the document being tendered since the state was not sure on its authenticity.
The original document was given to the court, and accepted. Brassington was further questioned on several clauses of the Board meeting of Guyana Stores Limited in 1999. The matter has been adjourned for April 28, when Brassington is expected to continue being cross examined.
In an affidavit signed by Mr. Tony Yassin, he admitted that on October 4, 2000, he entered into an agreement with National Industrial and Commercial Investment Limited (Privatisation Unit) to purchase the shares in Guyana Stores Limited which was owned by the Government of Guyana.
Furthermore it was stated that before entering into the agreement with National Industrial and Commercial Investment Limited, he was given various information memoranda on June 5, 1996 and packages in March 1999 in respect of the matters and facts which were peculiarly within the knowledge of the National Industrial and Commercial Investment Limited, Government and Privatisation Unit.
These, the defendant stated, he had no access method of verifying through its own investigation and inquiry.

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