Who knows what?

Jun 27, 2008 Features / Columnists, Freddie Kissoon

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The position of President Jagdeo on the identity of the investors of the hotel complex to be built on Kingston shore of the Atlantic was simple and logical.

His explanation is that high-level investments have a confidentiality dimension to them and that this is standard international practice.

I do not agree with this reasoning, at least not when it comes to public companies. Public companies have a legal obligation to their shareholders to inform them when and where would be the next attractive venture. For example, Microsoft wants to buy Yahoo for US$44B.

The world knows it because Microsoft announced its intention. When companies are seeking buy-outs, even the asking price is often carried in the press. Real Madrid wants to buy Manchester United winger, Cristiano Ronaldo. A price tag is being speculated on in the media that will make him the biggest purchase in football after Zinedine Zidane.

The money Manchester United will get for Ronaldo will be larger than what will be invested in the so-called Marriot structure in Guyana.

What is confidential in large investments is not the name of the investor(s) but the complex details like the nature of the transfer of stocks, the ensuing management structure, etc.
The President may be referring to family ownership or one-man investor. In that case, the law permits all kinds of secrecy.

President Jagdeo was still on safe grounds when he told the media on more than one occasion that while bank negotiations are going on, the investors cannot give details about his/her or their name(s).

For all intents and purpose, the bank deal is over. The turning of the sod was slated for yesterday but has been postponed for a month. But still there is no public announcement on who this investor(s) is (are). The nation is told that when the sod is turned next month, the names will be given.

What difference does a month make? One accepted the President’s reason for non-disclosure. That reason is no longer valid.

It is worrying that no journalist at the press conference on Wednesday got up and asked the President that now that the financial details are all wrapped up why is it that the identity cannot be revealed.

This would have been a powerfully relevant question because the President insisted that disclosure was not possible while negotiations were underway with the banks who were lending the money.

Why does a nation have to wait to know who are the foreigners putting money into their country until the sod is turned? Is this logical? Does it make any sense at all?

Let us look at another possibility. Suppose the turning of the sod was delayed because the financial arrangements are still not in place, then if three years of negotiations with bankers are still dragging on, will the sod be turned next month?

President Jagdeo urged citizens not to be taken up with speculation about the identity of the killers of the eight miners.

But speculation thrives on secrecy and this government is as secretive as the intelligence agencies of the superpowers in the days of the Cold War.

Something is fishy about the building of this hotel. Can you blame any citizen for thinking so? All the nasty rumours could have come to an end if the disclosure was made yesterday. What can happen to the entrepreneur(s) if between now and a month’s time, the media and people of this country are given the identity of ownership.

In what ways could the publication of names undermine the integrity of the company (if it is not a sole owner)?

Any commentator is inclined to think that the investor(s) feel(s) the publication of the names(s) will harm the prospect of the project. If this is not so then why not tell us who you are?

The more one thinks of the hotel affair, the more one feels that all is not right with this venture. A pertinent question is who in the government knows what about the Kingston edifice? Is it possible that given the nature of the project only President Jagdeo has the details?

Remember the Head of the Presidential Secretariat confessed to not knowing where the Roger Khan laptop was. President Jagdeo flew into Guyana and the next day, when asked the very question, told us that the police have it.

Why didn’t Luncheon know about its location too? Finally, where is the investigative power of the private media? Shouldn’t there be court papers filed away in the Deeds Registry that would have information on the Kingston hotel project?

Could you have such a large financial venture without the relevant papers being submitted to the court registry?

Shouldn’t those documents be available to the media? Something is indeed fishy about this hotel that will soon stand on the Kingston shore of the Atlantic, assuming that it will be built in the first place.

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