Latest update January 10th, 2025 3:30 AM
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GRA to pay $10.5M per month in rent – Luncheon
Former CLICO building is NIS property…
The former Colonial Life Insurance Company (CLICO) building on Camp Street
The CLICO building that is to be rented to GRA
has been acquired by the National Insurance Scheme (NIS). It will be rented to the Guyana Revenue Authority (GRA) for $10.5M monthly, according to Head of the Presidential Secretariat, Dr. Roger Luncheon.
He said that NIS paid $600M for the building which was assessed at $1.8 billion. The money paid by NIS would be offset against the outstanding $6B indebtedness of the liquidator. NIS had invested some $6B in Clico. That money was all but lost when Clico collapsed.
The local Clico went into liquidation. The purchase of the Camp Street building is part of the liquidation process.
Cabinet has since approved $227.1M for the completion and modification of the CLICO building on Camp Street.
“Indeed that $600M is used to offset some of the $5B that is still outstanding for NIS. The funding that has been identified in the award when Cabinet granted its no objections, those funds are being invested by the new tenant (GRA) to reconfigure the building and particularly its electrical, clean power and a suitable environment for the conduct of GRA business as opposed to what it was before for insurance business, ” Luncheon noted.
That property at lots 200 and 201 Camp Street with a size of 36,863 square feet was valued between $1.7B and $1.8B by the valuator contracted by the insurance company, while the government valuator placed it at $1.316B, a difference of $400M.
Liabilities for CLICO were in entities such as the NIS, GFC, GuyOil, and the Dependants’ Pension Fund.
NIS had acquired the CLICO building in Camp Street and holds it as a long term investment.
The Bank of Guyana has been appointed liquidator and is seeking to increase the liability of the failed insurance company by raising more money from activities such as the sale of the company’s assets as well as from taking legal action against BOSAI, CLICO (Bahamas) and Caribbean Resources Limited.
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