GRA vs Fidelity Investment… Khurshid Sattaur, Dr Safeek engage in war of words

Jul 11, 2008 News

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Commissioner-General of the Guyana Revenue Authority (GRA), Khurshid Sattaur, has described as unfortunate, Wednesday’s statements of corruption at Customs by Fidelity Investments Inc, the importers of Polar Beer.
“GRA stands resolute in its position against corruption and it will undertake, in the most condign manner, all the necessary steps to ensure that efforts to defraud the government of revenues are thwarted,” the Commissioner General said in a statement issued yesterday but dated July 9.
He said it is very unfortunate that Joshua Safeek, owner of SAFECO group of companies and the Managing Director of one of his subsidiary companies, Kong Inc. could make a public statement on this matter knowing fully well that they were in breach of the law for attempting to defraud the government of more than $350 M in revenues in a major scam discovered earlier this year.
However, Chief Executive Officer of Fidelity Investments Dr Joshua Safeek has refuted the GRA claim.
He said that in the first instance he is not the Managing Director of the company Kong Inc. and it is improper and baseless to ascribe to someone a position which they do not hold.
He added that at no time did the Safeco Group of Companies or himself attempt to defraud the Government of more than $350 million in revenues. “Perhaps it is to Khurshid Sattaur’s credit that the Guyanese public has consumed Venezuelan aerated drinks and a single empty can or bottle could not be found…Perhaps Sattaur of the GRA has his agenda as to why he is making this inaccurate statement to the public.”
The SAFECO Group also comprises of Fidelity Investments Ltd., National Co-operative Credit Union, Caricom Insurance formerly GUYFLAG Insurance and the Commodities Store.
“Anyone who has regard for the law will not willfully commit the same offence, even after being charged in the first instance,” Sattaur contended.
Safeek also committed to standing resolute with the GRA to clean up the Guyana Revenue Authority of corruption that exists within its fold and called on the body to make available to the Guyanese public the amount of revenues that Fidelity Investment, Inc. have defrauded GRA as a result of forging documents given that GRA has already collected $8.7M in revenue from the current shipment.
Responding to allegations that the GRA has failed to move against major businesses for engaging in illegal trading activities, as charged by Safeek in a statement to the media on Wednesday, Sattaur argued that if Fidelity is in possession of facts, the company should lay them before the GRA or the Multi-Agency Task Force that is presently engaged in carrying out a major investigation into the operations of the GRA, particularly the Customs and Trade Administration.
Once there is sufficient evidence against perpetrators, the GRA will act within its power to stem the illegal practice, the GRA head said.
While the GRA did not intend for this matter to be replicated, “Fidelity Investment once again succeeded in what appears to be a malicious and persistent effort to defraud the government and people of Guyana of revenues by forging documents at the Customs and Trade Administration.”
Sattaur also sought to clear the air on allegations by Fidelity that he is trying to influence the ongoing Multi-Agency Task Force investigation, which stemmed from “an earlier scam involving Fidelity Investment, by being part of the team”.
He reiterated that the GRA is not represented on the team of investigators but is tasked with facilitating the investigation by releasing the necessary documents and personnel as required by the Task Force.
 “Two weeks ago, Customs seized two containers of Polar Beer after it found that the value of the commodity was under-invoiced. Earlier this year, the company was implicated in a major corruption probe after the company imported over 50 containers using false documents.”
On Wednesday, Fidelity claimed that moves are afoot to close the company in order to protect a flourishing billion-dollar corruption racket that exists with the support of the Guyana Revenue Authority.
Dr Safeek also called on the Head of the Guyana Revenue Authority (GRA), Khurshid Sattaur, to recuse himself from any dealings with the company until the probe is over.
Dr Safeek said that since the corruption probe started months ago, his company was harassed to the point where he has stopped importing cement even though there is a ready market because of a shortage.
Safeek said that it was clear there is an attempt to protect a billion-dollar monthly scam at Customs.
In April, charges were filed against Dr Safeek and there was an agreement to hold until investigations were completed. However, GRA went ahead and broke its promise, filing charges, the CEO claimed.
On Wednesday, Sattaur was asked for a comment but he indicated that he “was not talking to Kaieteur News”.

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