Latest update November 8th, 2024 12:17 AM
PSC wrong on Berbice River Bridge ownership
“Taxpayers own 76%”- Christopher Ram
Prominent Chartered Accountant Christopher Ram has described the position of the Private Sector Commission (PSC) on the ownership of the Berbice River Bridge as “mindboggling ignorance”.
While the PSC has claimed that the bridge is mainly privately owned, Ram is adamant that the Government of Guyana, through the National Industrial and Commercial Investments Limited (NICIL), is the majority shareholder.
Christopher Ram
The present controversy follows an announcement by a section of the parliamentary opposition that it will be seeking a reduction of the tariffs charged by the facility.
The PSC had claimed in a statement that the Berbice Bridge Company is 80% owned by Guyanese Private Sector interests, including pension funds, and 20% by an institutional investor, the National Insurance Scheme (NIS), that also holds non-voting preference stock in the Company.
“As far as we are aware, the Government directly or indirectly has no investment in, or liability relating to, the bridge at this time,” the PSC had stated.
The PSC said it will vigorously oppose any form of non-regulatory interference in the management of Private Sector companies, which in this instance if allowed to proceed, will negate against attracting private investment in similar infrastructural projects.
But Ram in a recent Letter to the Editor said that, “This is mindboggling ignorance, given all the public revelations and exchanges over the Bridge Company’s ownership and performance.”
He explained that the ownership structure of the Company is made up of ordinary share capital of $400 million and preference shares of $950 million.
The holders of the ordinary shares, he said, are NIS, New GPC, Queens Atlantic and Secure International Finance Company, each having $80 million, and Hand-in-Hand and Demerara Contractors each holding $40 million.
“What this means is that the Government, inclusive of the NIS, owns 76% of the issued shares of the company. Apparently, the PSC’s awareness, or lack thereof, also does not extend to knowing that NICIL, a government agency, owns what is called a Special Share in the company,” Ram wrote.
He added that the Articles of Amendment of the company expressly provides that in respect of specified matters, “no action can be taken by the [Bridge] Company, without the affirmative vote of the holder of the Special Share.”
“And because the PSC claims not to know that the Government has this $950 million investment in the Bridge Company, it does not need to address the illegality of NICIL granting the Bridge Company an annual subsidy of around $110 million of dividends forgone.”
Ram in his missive stated that the PSC is expected to be a little more careful with facts, for failure to do so may not embarrass those who cause such statements to be made, but reflects poorly on the rest of the Private Sector.
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