AFC wants forensic audit of Jagdeo, Brassington assets

Sep 17, 2013 News

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…‘unknown private investor’ to take majority ownership of Marriott Hotel

With Atlantic Hotel Inc (AHI) still negotiating with a foreign private investor for two-thirds ownership of the Marriott Hotel, still under construction in Kingston, the Alliance for Change (AFC) Leader, Khemraj Ramjattan, has since charged that there is undoubtedly a fraudulent intent in the way the project has been configured.

The Guyana Government upon completion of the deal being negotiated will own a minority stake in the Marriott Hotel.
Ramjattan has since called on Head of State, Donald Ramotar, to enforce the resolutions of a Parliamentary Motion that had called for a forensic audit into the operations of the National Industrial and Commercial Investments Limited (NICIL), which is headed by Winston Brassington.
Ramjattan says that the personal assets of Brassington and members of NICIL’s Board, his connection to former President Bharrat Jagdeo and his inner circle and even the assets of Jagdeo himself must be scrutinized “So that the truth be known!”
Qualifying his position that the Marriott was born with fraudulent intent, Ramjattan pointed to the advance of US$10M just before the 2011 election even while there were no certain private sector financial commitments or any other certainty that the project will be completed.
The AFC leader pointed out that after spending billions of taxpayer moneys on a project without economic justification and financial viability, “we are now being told that the project has stalled and will soon be

energized by this phantom investor!” Is this how this Government does business?”
Ramjattan opined that one would have thought that if prudence prevailed, then construction of the Marriott Hotel will only have commenced when all the finances were secured.
“When that does not happen, it is surely corruption which prevails.”
He said that in total contempt for the struggling taxpayer who has forked out more than $2B, no disclosure is made of the investors, their profile, source of funds, amount offered, payment terms and other arrangements.
Ramjattan has since also demanded an urgent audit of all expenditure and commitments on the Marriott Hotel before any sale or investment and its review by the Public Accounts Committee.
According to Ramjattan, the Marriott Hotel Project “is turning out exactly as I had forecast…the abuse of state revenues to build the Marriott by the Sheiks among today’s Guyana sultanate, through the misuse of NICIL as the instrument; and, then selling it to their friends for lower than its real value at great loss to taxpayers is what is happening here.”
Ramjattan recalled that Brassington and Finance Minister, Dr Ashni Singh, had told the nation that the project had sufficient finances, from investors and loans, to fund its completion.
“They were deceptive when they pronounced in our (National) Assembly and led its members into believing that monies from the syndicated investors were in the bag…That was why they told us that they will start the project…When we asked them to name the investors or where the loans were coming from, they said that

was confidential.”
Ramjattan said that the current position is that “we now know it is only the public monies which have been spent thus far for work done….monies up fronted at Jagdeo’s approval just before the 2011 Elections to the Chinese contractor.”
According to the AFC Leader, the clouding of the truth as to an impending sale of, or investment into the Marriott Hotel, “clearly shows the continuing lack of transparency, and behind-the-door secret deals involving Head of the NICIL, Winston Brassington and unknown investors controlled by the former Head of State and his circle of friends.”
Ramjattan asks, “Why is it that Brassington does not want to tell us who this new investor is? Is he some Phantom?”
This past week Ramjattan alleged that an offer was made from a British Virgin Islands incorporated investor, to purchase the incomplete Marriott Hotel Building, as a result of Government “finding it difficult to attract the investors and syndicated loans” to complete the hotel.
Brassington has since denied this but did say that AHI is in the closing stages of a deal with a foreign investor and that the name of this investor will be announced when there is financial closure.
He said, “In general, private investors are usually reluctant to make premature public disclosures about their business and in this case there is greater apprehension to do so, given the hostile and unwelcoming

political environment created by the Opposition parties.”
He said that the private investor is aware, and acknowledges, that given its intended relationship with the Government of Guyana, it will be required to make a public announcement which it is prepared to do at the appropriate time.

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