‘Ghost Company’ MOU must be terminated, officials disciplined – Harmon

Nov 17, 2013 News

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By Latoya Giles
A Partnership for National Unity’s (APNU) Joseph Harmon, yesterday, described the recent signing of a Memorandum of Understanding (MoU) between Mohamed Osman, and Government, to build a US$30M recycling plant as “disgusting and disturbing.”
According to Harmon, what makes the matter more interesting and questionable is the obvious link with a sitting government Minister’s daughter.

Public records show that the business which was registered a mere three months ago has as its directors Mohammed Osman, his son Izaman Osman and Adriana Webster, the daughter of Human Service Minister Jennifer Webster.
According to Harmon, all of the parties are giving contradicting statements which could only mean one thing; that the MoU should be terminated and withdrawn immediately. He told Kaieteur News that it seems as though cabinet is derelict in their duties.
Harmon stressed that “deals” like this will continue to come about in the absence of a Public Procurement Commission.
He said this “deal’ shows clearly that the “no objections” given by Cabinet are absolutely ridiculous.
“I cannot believe that all those government Ministers sat down and passed no objection to a project with a company that doesn’t even exist.”
He stressed that the information published about Osman alone should be the main reason why that MoU must be recalled.
“This is crazy….it’s like anyone could walk off the road and present a proposal and get a MoU signed with Government,” Harmon opined.
He said that this new development is like Déjà. Vu.
“Remember what happened with Fip Motilall….a man that had no history of building a road but was given a multi-million dollar project, but years after the road still cannot be completed,” Harmon said.
The APNU executive is adamant that the persons at the local government ministry who actually dealt with the proposal should be disciplined.
Kaieteur News recently highlighted that the National Globe Inc with which Government signed a Memorandum of Understanding to set up a s US$30M recycling plant here was a ‘ghost company’ Minister Webster on Friday confirmed the link between her daughter and the company but insisted that her daughter is not the $US15 million investor.
In vehemently denying this, the Minister said that her daughter was only a director in the Company and not a shareholder in the project.
The Human Services Minister distanced herself from the company entirely saying that she has no ties to it. She added that “every person is entitled to live his or her separate life regardless of the affiliation of his or her family members.”
According to Webster, she does not exercise any control whatsoever over her daughter’s decisions in respect of her personal or professional life.

“I do not have anything to do with this company, either personally or in my capacity as a Minister of Government. I in no way attempted to influence any decision-making process, nor did I ever participate in any negotiation process whatsoever in any form or fashion,” Webster stressed.
Despite distancing herself from the project, the Minister did provide some insight into the proposed financing structure for the project.
She said that it is not a case where a person’s personal money would be invested but rather, it was the company that is investing the money.
Minister Webster however failed to address the fact that this company was only registered in Guyana three months ago while the proposal for the recycling plant was submitted to Government 14 months ago.
The Minister said that the company would be using a debt and equity structure to build the plant, meaning that the Company would invest a certain amount of money and the remainder would be borrowed from a bank. Questions are being raised as to how the Minister knew that this issue was up for contention.
This is also in stark contrast to what the CEO of the Company had said one day earlier.
Osman visited Kaieteur News last Thursday and said that the company had the entire US$30M required for the project.
He has stated that he along with the Minister’s daughter would be making the investment.
Minister Webster said that she would be advising her daughter ‘accordingly’ should it be proven that Osman did indeed say that.
In further defending her daughter, Minister Webster said that her daughter, Adrianna Webster is a 28-year-old information technology consultant who does not have that “kind of money.”
She said that her daughter has been living in Canada for several years and is also a consultant for Mogford Enterprise.
Osman told this newspaper that he is the Vice President of Mogford Enterprise which is said to be the Canadian counterpart for Natural Globe Inc.
A visibly upset Webster contended that the article was intended to expose her personally, her office as a Minister of Government, and bring the Government of Guyana to public ridicule “as well as to perpetuate the perception of conflict of interest and corruption on my part and that of the Government of Guyana”.
However, this publication’s article never dealt with the issue of the Minister having anything to do with the company Natural Globe Inc.
“She maintained that when the MoU came up for consideration at the level of the Cabinet, she was not present and in fact travelling at the time.”
Minister Webster also read a statement which she claimed was from the said daughter which denied that she was the female investor providing US$15M to any recycling plant.
“I have my own income and my own liabilities and my decision to work with the firm is merely on a professional basis…The proposed solid waste recycling project to be undertaken in Guyana, of which I am a registered director of the company— Natural Globe Inc, is purely being undertaken by the company…In fact, the financing for this project is already in place.”
The names on the local business registration for Natural Globe Inc are Mohammed Osman, his son, Imzamam Osman, and Andriana Webster.
When asked about the source of his finances to back such an ambitious project, Osman claimed that he is the Vice President of a Canadian Company, Mogford Enterprises, and that he owns half of this company along with a man he identified as John Mogford.
A statement from the Ministry of Local Government and Regional Development contradicted this position by announcing that he was merely a consultant with the company. When questioned further about details about the company such as contact information, among other things, Osman said he could not recall at the time and would text Kaieteur News the information.
He is yet to do so.
Questioned about whether any investigation was undertaken by the Local Government Ministry into the background and ability of the Company to undertake what it has promised, subject Minister, Ganga Persaud responded that government is “satisfied” with all the information which was submitted by the company.
“We just needed a recycling plant which is in keeping with the needs we outlined,” the Minister said.   He said that he does not know about the technical capabilities of the company, or about its business in Canada.

 

 

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