Media revelations force Govt. to abandon MoU with ‘Ghost Company’

Nov 21, 2013 News

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Following days of explosive revelations regarding Natural Globe Inc, a company that inked a Memorandum of Understanding (MoU) with Government to pursue the setting up of a US$30M recycling plant, Cabinet has decided to abandon the pact.
Head of the Presidential Secretariat and Cabinet Secretary, Dr Roger Luncheon, confirmed this yesterday during his weekly press engagement at Office of the President.

This latest development came days after Government would have stoutly defended the company and the MoU. Minister Ganga Persaud had even accused the media of seeking to scare away investors, such as Mohamed Osman, the Chief Executive Officer of Natural Globe Inc.
The Minister of Local Govt. claimed that he was “satisfied that there is credible evidence with regards to Mr Osman (sic) experience, involvement, and expertise in the business of recycling and his initial commitment to invest approximately US$30M in this particular project.
“The standard operating procedures were followed in identifying Natural Globe Guyana Inc.”
Dr Luncheon yesterday took an about-turn and said that the media exposure prompted the review and eventual abandonment of the MoU.
“In the wake of the media revelations and in the context of its recent execution of the MoU with the firm Natural Globe Inc, for recycling services in Guyana, Cabinet has decided to withdraw its execution of the MoU with the firm,” said Dr. Luncheon.
As a result of the Cabinet decision, Dr. Luncheon said that the planned move to approach Go-Invest for the necessary feasibility study, prior to an investment agreement being inked, has now been abandoned.
Asked about the due diligence that Government would have conducted prior to inking the MoU with Natural Globe Inc, Dr. Luncheon said, “A number of areas were inadequately attended to.”
He said that it was “the media revelations that pointed this out, rather forcibly, to the attention not only of Cabinet, but of the Guyanese people.”
Dr. Luncheon, commenting on the level of due diligence that was conducted on Natural Globe Inc, said that it was because it was merely for a MoU and not an actual contract.
“I would be the first to concede, it did not attract the same level of due diligence, had it been for the execution of a contract,” according to Dr. Luncheon.
Asked about tax breaks or concessions that would have been demanded by Natural Globe Inc, Dr. Luncheon said that because it was only a MoU and not a contract, this was not a consideration.
When the MoU was first announced, Guyanese were told that it was a Canadian Company.
Searches for the Canadian registered company proved futile. It was later learnt that the Company was in fact registered in Guyana only three months ago.
The proposal for the project was submitted 14 months ago.
Natural Globe Inc, the company in question, is run by Osman and has as its Directors, his son, Imzamam Osman and Andrianna Webster, the daughter of the Minister of Human Services and Social Security, Jennifer Webster.
When Kaieteur News first began questioning the MoU with what was deemed a ‘Ghost Company’ the Ministry of Local Government lashed out saying that it wishes to clarify the misrepresented, misinformed and mischievous statements published by Media Houses which seek to confuse and communicate incorrect messages to the public on the recent signing of the MoU for the establishment of recycling plant in Guyana.”
The Ministry said that the company is owned and operated by a Guyanese entrepreneur who resides in Canada and is in the process of becoming a re-migrant resident.
“This company is also a local consultancy firm that provides integrated solutions for sustainable development in the fields of solid waste management and specializes in operations in the environmental sector,” the Ministry said.
Osman during an interview with this publication, had said that the US$30M required for the project was already in place and that the company was just awaiting word from Government to go ahead.
Asked to identify the investors, he said that it was the Minister’s daughter and himself that would be putting US$15M each.
Minister Webster while confirming that her daughter was a Director of the company, vehemently denied that she was investing any money given that she was not a shareholder.
Pressed further on the source of his share of the financing, Osman said that he is the Vice President of Mogford Enterprise in Canada which is the parent company for a subsidiary called the Tadger Group International.
While there was no website found for the parent company, one was located for what he claimed is the subsidiary.
When questioned further about this company, details such as contact information, among other things, Osman said he could not recall at the time and would text Kaieteur News the information.
The Ministry of Local Government had on the very day contradicted what Osman was saying when it released a statement that he “Osman serves in the capacity of Technical Advisor to this agency.”
In wake of the revelations on the Company, A Partnership for National Unity’s (APNU) Joseph Harmon had described the MoU between Osman, and Government as “disgusting and disturbing.”
Harmon, at the time said that what makes the matter more interesting and questionable is the obvious link with a sitting Government Minister’s daughter.
APNU executive was adamant that the persons at the Local Government ministry who actually dealt with the proposal should be disciplined.

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