Latest update April 12th, 2025 6:32 PM
Sep 15, 2012 News
By Latoya Giles
The High Court action between the National Industrial and Commercial Investment Limited and Royal Investment Inc. which owns and operates Guyana Stores, was again called up before Justice Roxanne George-Wiltshire, yesterday.
Royal Investment Inc. is headed by proprietor Tony Yassin. NICIL is being represented by Rafiq Turhan Khan, while Yassin is being represented by Senior Counsel Rex Mc Kay and Edward Luckhoo.
Royal Investment Inc. has been sued by the Privatisation Unit/ NICIL for failing to pay the balance of US$2 million for the 70 million shares in Guyana Stores which the company acquired for US$6million.
At yesterday’s hearing, Head of the Privatisation Unit, Winston Brassington, was cross-examined by Senior Counsel Edward Luckhoo. Brassington was questioned about the information packages which were for investors who were interested in making the purchase.
Brassington was also asked whether due diligence was extended to the entire contents of the package. If so, then the selected investor’s right to seek clarification or additional information must necessarily be in relation to any matter contained in the package…The correct person to give that information was the Head of the Privatization Unit – Mr. Winston Brassington, the lawyer contended.
Senior Counsel Luckhoo then put to Brassington that it would be improper of him to refuse to give the additional information requested. Brassington denied doing so.
Mr. Luckhoo asked if it would be improper for Mr. Brassington to refuse to give additional information during the due diligence period and he replied in the affirmative.
The court also heard that although there were many requests for additional information from the packages, Brassington ignored them.
The court further heard yesterday that although one could have requested more information, it was not a courtesy extended by Brassington.
Mr. Luckhoo then asked if the witness would agree with him that because of instructions from the Privatization Unit, the Company (GSL) was starved of cash resource. He referred to complaints from Mr. Fries, an experienced businessman and Mr. Maniram Prashad, Chairman of the Board of Directors who was appointed by the President.
However Brassington denied that Maniram Prashad was appointed by the president. He said that Mr. Prashad was appointed by the shareholders. Mr. Luckhoo asked Brassington about the appointment of the Chairman and heard that Brassington was appointed by the Cabinet. Brassington went on to give a lengthy explanation but was cautioned by the lawyer not to do so, since he was not at a press conference.
Brassington was then asked if it was fair to say that the criticisms of the cash resources were fair and he replied “partly”. Mr. Luckhoo then asked Brassington if he directed or gave instructions in relation to cash flow and net current assets. According to Brassington, he was.
The witness was then asked that given the fact that GSL was run by a Board, if he thought that the Privatisation Unit had the authority to give instructions in that regard. Brassington admitted that he didn’t have that authority. The matter was later adjourned for November 16.
In an affidavit signed by Mr. Tony Yassin, he admitted that on October 4, 2000, he entered into an agreement with National Industrial and Commercial Investment Limited (Privatisation Unit) to purchase the shares in Guyana Stores Limited which was owned by the Government of Guyana.
Furthermore it was stated that before entering into the agreement with National Industrial and Commercial Investment Limited, Yassin was given various information memoranda on June 5, 1996 and packages in March 1999 in respect of the matters and facts which were peculiarly within the knowledge of the National Industrial and Commercial Investment Limited, Government and Privatisation Unit.
To these, the defendant stated, he had no access method of verifying through its own investigation and inquiry.
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