GPL, M&CC exchange cheques

Dec 23, 2009 News

With the exchange of cheques each valued at more than $179M, the near three-week long controversy between the Mayor and City Council of Georgetown (M&CC) and the Guyana Power and Light Incorporated (GPL) is expected to be put to a final rest.

GPL’s Aeshwar Deonarine and M&CC’s Monica Irving (below)

Before Justice Prem Persaud, who had taken up the task to intervene in the controversy, the municipal Budget Manager, Ms Monica Irving, and GPL Senior Divisional Director, Mr Aeshwar Deonarine, agreed to exchange cheques valued at $179, 496,876.
The representatives of the two entities were accompanied to the bank by the PUC Financial Analyst, Mr Murselene Sankar, whose task was to verify that both cheques were honoured by the bank.
And since the interest owed by both parties have been waived, the cheque presented by GPL was sufficient to discharge the amount owed by the power company for rates and taxes up to and including 2009. GPL, according to Justice Persaud has accepted a debt of $116,891,749 together with $62, 605,127 representing the Guyana Electricity Corporation’s obligation to the municipality.
He asserted that the amount honoured by GPL does not include rates for the property at Kingston, Georgetown, on which it has built its 20.7 megawatt power plant. However it was agreed that the municipality will in due course invoice GPL for the property which was acquired this year.
It has been revealed that the M&CC cheque will partially discharge its obligation for electricity service charges owing as at December 2009. As a result the municipality is yet to finalise a payment plan as was previously agreed.
The exchange of cheques was initially slated for Monday but was postponed due to an emergency on the part of the power company according to Justice Persaud.
GPL and the municipality have been at logger heads for the past few weeks each claiming that the other owes millions of dollars for service provided. The move to seek the intervention of the PUC was first proposed by the municipally last week Wednesday after the power company circulated and published in the press a letter which entailed an ultimatum if the municipality did not honour an agreement that was reached at a meeting between the two parties last month.
Justice Persaud first met with the two parties last week Monday in his quest to help bring an amicable and swift resolution to their disagreements. That meeting ended with a call for a meeting last week Friday which saw the two parties agreeing to exchange cheques on Monday.
The supply of electricity is expected to be restored to City Hall once either party fulfils its obligation.
According to Justice Persaud it is expected that the cheque to be paid by GPL would discharge the rates and taxes owed by both GPL and Guyana Electricity Corporation (GEC) up to the end of this year. And though the amount to be paid by the municipality was not disclosed the entity is obligated to make a payment as well.
And given the municipal cash-strapped status it was recommended that the M&CC submit a payment plan, which details how it will fully honour its payment obligation. According to Justice Persaud, it is expected that GPL will give consideration to the municipal payment plan.
“They were cordial when we met and once all goes well on Monday things should be back to normal. We are hoping that from January everybody will start with a clean slate and everybody will be happy.”