Booker Tate action preceded GuySuCo lawsuit

Dec 22, 2010 News

Skeldon factory fallout…

Former managers of the Guyana Sugar Corporation (GuySuCo), Booker Tate Limited, are suing the state-owned entity, in excess of £664,000 (G$208M) for unpaid fees.
According to court documents filed on September 30 by attorney Nigel Hughes, local lawyer for the UK-based sugar consultant, two separate actions were filed against GuySuCo.
GuySuCo on Monday said it was counter-suing because Booker Tate had mismanaged the industry, especially regarding the supervision of the new Skeldon factory which is under fire for not performing to expectations.
In the first action, Booker Tate claimed that in March 2004, it entered into agreement with GuySuCo to provide corporate management services until December 2005. This arrangement was expected to be extended six months after the Skeldon factory would have been handed over to the Guyana government.
Claiming that it executed its contractual obligations, Booker Tate said that GuySuCo failed to pay them £224,349.94 (G$70M) in outstanding fees.
In August last year, however, GuySuCo agreed to terminate the corporate services agreement and instead replaced it with a technical services contract.
GuySuCo also agreed to release Booker Tate from its obligations under the corporate services agreement with effect from April 1st, 2009.
The plaintiff said that it made several requests for the outstanding payments, but to no avail.
In February, lawyers for Booker Tate wrote the Corporation demanding payments but again this failed to see results.
In the second action, Booker Tate is claiming in excess of £345,000 (G$108M) because of the agreement entered between the two parties in August 2004.
The UK company also made claims for £94,811.77 (G$30M) that was owed for an agreement made on August 6th, 2004.
In its statement of claims for these sums, Booker Tate explained that the August 2004 agreement had seen GuySuCo committed to pay a fixed project management fee for the Skeldon factory construction to the tune of £2,425,284 ($757M) plus reimbursable expenses and costs for over £834,000 (G$260M).
According to Booker Tate, it duly provided the defendants with the services expected of the agreement and issued 29 invoices for payments between January 27th, 2009 and February 28th, 2010 for a sum £345,589.20 (G$108M).
However, GuySuCo failed to pay. The plaintiffs said that in December 2009, it informed GuySuCo of its intentions to terminate the agreement within 14 days. There were still no payments from the Corporation.
However, the UK-based consultant said it received an email dated February 22, 2010, in which GuySuCo terminated the Project Management Agreement and said that the services of the engineer were no longer needed.
According to Booker Tate, it then wrote GuySuCo pointing out that the termination was in violation of the agreement terms and rejected it.
Booker Tate disclosed that on March 4th, it presented a full and comprehensive “Hand Over Report” of the Skeldon factory project and demanded that the Corporation pay up the outstanding sums
Following the handing over the Skeldon factory, GuySuCo has ended the contracts of several consultants including Skeldon engineer, Paul Hough, a Booker Tate representative.
Blame was laid squarely on Booker Tate for a number of crucial flaws at the facility including that of a diffuser system and cane dumper.
GuySuCo is going through a torrid time with low production and a cash-strapped situation further marred by numerous strikes.

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Booker Tate action preceded GuySuCo lawsuit

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Booker Tate action preceded GuySuCo lawsuit

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