The Sanata Complex giveaway

Jan 03, 2014 Heist of Guyana, News

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January 31, 2016

Govt spent US$5M to rehab Sanata, then sold it to Ramroop for US$3.4M – Audit report reveals

By Abena Rockcliffe
The term “friends with benefits” was magnified in a section of the National Industrial and Commercial

Investments Limited (NICIL) audit report which confirmed that Dr. Ranjisingh ‘Bobby’ Ramroop—best friend of former President Bharrat Jagdeo—was able to grab the Sanata Complex at a gift price.
The report also highlighted NICIL’s admittance that it sold the property to Dr. Ramroop at a valuation price of what the property was worth before large sums were spent on renovation.
NICIL sold 18.891 acres of land with buildings and erections at the Plantation Ruimveldt for US$3.4M to Queens Atlantic Investments Inc. (QAII) in 2010. Kaieteur News understands that this sale recorded a major loss for the State as pre-sale rehabilitation works on the complex had cost close toUS$5M with US$2M being spent on the removal of asbestos alone.
Chartered Accountant and former Auditor General, Anand Goolsarran, had highlighted the sale of the property in his forensic audit report on NICIL.
He said, “By Order No. 40/2010 dated November 29, 2010, NICIL sold 18.891 acres of land and buildings and erections at the Plantation Ruimveldt (Sanata Textiles) to Queens Atlantic Investments Inc. (QAII) for $689 million (US$3.4M). The note on NICIL’s publication reads: After being advertised for sale but no proposals was received, in mid- 2007, a proposal was received from QAII for the development of the compound with a US$27 million investment plan.
The proposal was for a lease with an option to purchase.  At the time of the proposal NICIL was facing

continued vandalism and destruction to the property despite the presence of security.  In 2007, following the requisite approvals, a lease was issued and in 2010 having satisfied all the conditions precedent to exercise the option to purchase, the property was sold at the current market valuation of the property before the improvements were implemented”
NICIL’s Executive Director, Winston Brassington, and the Executive Chairman of QAII, Dr Ramroop, in a joint missive, had stated that the privatization of Sanata had taken the form of the issuance of a 99-year lease at a substantive rental of approximately $50M per year.
However, there was nothing in Goolsarran’s report that proves that Dr. Ramroop had indeed been paying the cost for the lease.
Following the acquisition of this property, QAII reported that its assets more than doubled.
The company’s 2010 Financial Statements, which were inked by the Group’s head and best friend of former President Bharrat Jagdeo, Ramroop, verified that the group’s total assets for 2009 were $3.6B. It skyrocketed to $7.9B in 2010. A property bought for only $689M hiked QAII’s more than $4B higher.
Rehabilitation and construction of the facilities which commenced in June 2007 were said to be phased over a three-year period.
Until it was sold, Sanata was leased to and managed by the China Textiles Industrial Corporation for Foreign Economic and Technical Cooperation of China.
In 2000, the assets of the company were brought under the control of NICIL and subsequently a new company,

G&C Sanata, was established.
Queens Atlantic Investment Inc. was incorporated in Guyana in 1999..
The Government of Guyana in 2008 approved the privatization of the Sanata Textiles Complex (Sanata), Industrial Site, Georgetown to QAII for the purpose of establishing a multi-purpose investment complex.
Dr Ramroop at the time had intimated that he envisaged an overall investment of US$30M and the creation of 1200 jobs of which 600 new, permanent jobs would become a reality by the end of 2008. This never materialized.

 

August 26, 2016

No evidence Ramroop’s R/veldt complex is a GWI customer

– Operations could be back-billed tens of millions$$$
– Investigators asked to leave compound

The state-owned Guyana Water Incorporated (GWI) has started investigations on the Ruimveldt property sold by Government to Queens Atlantic Investments Incorporated (QAII), a company controlled by Dr. Ranjisinghi ‘Bobby’ Ramroop.
Known as the Sanata Textile Mill property, GWI technicians reportedly visited it more than a week ago to carry out checks.
From indications, according to GWI officials, QAII, has not been paying its water bills. It appears that the connections are illegal.
As a matter of fact, GWI could find no trace of the property even being listed as a customer.
“We have made checks of that property, and it is, as you know, a pretty large piece with many buildings, and surprisingly enough, there is no trace of it as one of our customers,” a GWI officer disclosed yesterday.
GWI officials are mystified, as the water company owns the well that had been sunk right in the compound. That well was there for at least two decades, as far back when a Chinese company was there operating a textile mill.
GWI technicians have been accessing the compound quite regularly to carry out maintenance and other works.
The well currently serves about 9,000 customers in the Ruimveldt area, including D’Aguiar Park, Alexander Village, Meadowbank and West Ruimveldt.
“What we found from the initial checks is that there is a bulk meter in place serving the buildings. We were unable to conduct more investigations as our team was ordered to leave the premises.”
The GWI official declined to explain who ordered his team to leave the premises – GWI’s management or QAII.
It is believed that QAII which has been in the compound has been utilizing water from the well since it started operations as far back as 2008. It therefore could be backdated tens of millions of dollars now by GWI for using water and not paying for it.
GWI will have to determine the extent of the usage of possible illegal connections.
GWI’s Managing Director, Dr. Richard Van West Charles, declined yesterday to speak on the issue, noting, through his management, that the matter is currently engaging the attention of the entity.
The Sanata Complex houses a number of QAII subsidiaries including the Guyana Times operations, TVG28, and Radio Guyana. It also houses a drug bond and administrative offices for New GPC.
The problem is a huge one for GWI which currently has more than $4B outstanding from delinquent and other customers. Over the past year, almost $1.8B was collected.
A large number of customers remained unmetered, so it is difficult to determine how much revenue is actually lost. Additionally, a number of new private schemes and commercial operations have been receiving water, but through illegal connections.
GWI, the official said yesterday, is now systematically going throughout the country to determine how much it is losing.
With regards to Ramroop’s operations, it is unclear how long the complex has been receiving water and whether the connections were made when the property was handed over to Ramroop and company.
What is known is that previous Governments under the People’s Progressive Party/Civic (PPP/C) spent US$5M to refurbish the complex before questionably selling to QAII for a mere US$3.4M around 2008. It is unclear whether the US$5M was spent on refurbishing the water connections.
The entire complex, 18.891 acres of it with buildings and erections, has been described as a giveaway by former president, Bharrat Jagdeo, to his best friend, Dr. Ramroop.
The Jagdeo-led administration in 2008 approved the privatization of the Sanata Textiles Complex (Sanata), Industrial Site, Georgetown to QAII for the purpose of establishing a multi-purpose investment complex.
Dr Ramroop at the time had intimated that he envisaged an overall investment of US$30M and the creation of 1200 jobs of which 600 new, permanent jobs would become a reality by the end of 2008. This never materialized.

 

August 28, 2016

Tug-of-war over water well at Sanata…GWI paying almost $3M monthly for facility QAII claims it owns

– Chairman denies any conflict of interest over New GPC sponsorship

The Guyana Water Inc. (GWI) is insisting that it is the owner of a well currently housed in the Ruimveldt compound of Queens Atlantic Investment Inc. (QAII).
As a matter of fact, the entity said yesterday, it has been spending millions of dollars every month in electricity and labour costs to upkeep the facility which currently serves over 9,000 customers in the Ruimveldt area, including D’Aguiar Park, Alexander Village, Meadowbank and West Ruimveldt.
That expenditure by GWI would contradict claims by QAII, which controls a number of media companies and New GPC, that it owns the well.
The claims by Dr. Ranjisinghi ‘Bobby’ Ramroop, a close friend of former President Bharrat Jagdeo, immediately raised questions as to how the well ended up in the hands of QAII while GWI was paying for its maintenance.
The issue came to the fore over a week ago when GWI technicians, as part of its drive to collect over $4B owed by consumers- domestic and commercial- across the country, started to conduct checks at QAII.
However, the GWI technicians were reportedly stopped by their management when they started investigations.
Following the report by Kaieteur News on Friday – of the investigations of alleged water theft by QAII – Dr. Ramroop took to his newspaper, claiming in a lead article yesterday that the visit by GWI technicians was in retaliation to a story that the water company Managing Director, Dr. Richard Van-West Charles, benefitted from a fuel licence while in office.
QAII claimed that the well in question is in fact wholly owned by QAII, with GWI and its predecessor companies never owning it.
“Like many industrial operations, large complexes have their own well and operate these independently of GWI… QAII has always sought to be a good citizen and has maintained that there is an arrangement where the water from the well can be accessed for GWI usage,” Dr. Ramroop is quoted as saying.
QAII said it is not and never was a customer of GWI. As a matter of fact, the well and the compound, known as the Sanata Textile property, is private property.
“Over the years, the well and the environs have always been recognised as being under private ownership, and are currently owned by QAII… QAII will continue to pursue a good relationship with GWI for shared access to the water resources of the well.”
However, GWI officials insisted yesterday that while the well is in the compound of QAII, GWI has always maintained control of the well, ever since the 1970s when it was built.
It was emphasised that GWI technicians visit the well every day and electricity bills, amounting to almost $3M monthly, are being paid by the state-owned company. All the maintenance works are also being carried out by GWI.
“Workers have to pass by the security hut at the Ruimveldt compound to access the wells and there are logs to prove this,” GWI said.
According to QAII, most of the water from the well is being used by GWI, with the company never being a customer at the location, “given that QAII is accessing water from its own well.”
GWI CAMPAIGN
Contacted yesterday, the Managing Director disclosed that he was out of the country. Questioned on the allegations by QAII that the visit was in retaliation to a report on the fuel licence, the official said it was utter nonsense.
“GWI has started a countrywide campaign to collect what is owed. That is estimated at over $4B right now. We have collected almost $2B over the past year alone. Our crews have been visiting businesses, homes and other places as part of that. QAII is not different.”
Questioned why he ordered the GWI to leave the Ruimveldt compound, the Managing Director said he was asked by the Chairman of the Board, Nigel Hinds.
He advised this newspaper to call the Chairman.
When contacted, Hinds disclosed that indeed he asked Van-West Charles to cease the inspections at the complex as there were questions over the ownership of the well. Also there was the very real scenario of the visit being seen as retaliation.
The order to stand down came one day after the technicians had visited the site and not immediately, Hinds stressed.
The Chairman of the Board was also questioned about the possibility that his order for technicians to cease investigations would raise eyebrows over the fact that the sports organization over which he presides, the Guyana Amateur Basketball Federation (GABF), was recently sponsored by New GPC, a subsidiary of QAII.
Hinds is the President of GABF and a well-known auditor.
New GPC is the main sponsor of the Guyana boys’ team which is currently participating in the 2016 CentroBasket Under-15 Young Men Championships in Puerto Rico.
Hinds, in his defence, said that the request for sponsorship was made since June and was only recently approved by New GPC. He denied that it was an overreach of his authority or conflict of interest over the sponsorship when he requested the technicians to stand down.
As a matter of fact, he said, a meeting is set to be held as early as tomorrow with GWI management for the company to determine the ownership of the now controversial well. Based on that, the water company will decide on the way forward.
Should QAII be found guilty of stealing water, it could be forced to pay tens of millions of dollars for bills dating back to around 2008 when the company acquired the Sanata Textile complex.
Meanwhile, GWI officials have confirmed that they are also looking at another property of QAII. This one is on Camp and Quamina Streets, which up to last year used to house the offices of TVG28 and Guyana Times, two media outfits owned by the group.
It is unclear where the property was getting its water from. However, inspectors found connections leading from the outside to the building.

 

September 01, 2016

PPP gave Ruimveldt well to Ramroop in Sanata Deal – GWI  confirms

– Ramroop agrees to settle bill for Camp Street property

For more than three decades, it was under the control of Government. Then in the late 2000s, a water well at the Sanata Textile Complex, Ruimveldt, was sold under questionable circumstances by the National Industrial and Commercial Investments Limited (NICIL) to Queens Atlantic Investments Inc. (QAII), a group of companies under the direction of Dr. Ranjisinghi ‘Bobby’ Ramroop.
NICIL is the state-owned company that handles investments and privatizations of public properties.
Why the administration of former President Bharrat Jagdeo decided to sell the well which was managed by the Guyana Water Inc. (GWI) is now the big question. Jagdeo is a close friend of Ramroop.
While the well was located in the Sanata complex, it served over 9,000 customers in the Ruimveldt area, including D’Aguiar Park, Alexander Village, Meadowbank and West Ruimveldt.
Each month, GWI has been paying almost $3M in electricity bills for the well as well as sending its technicians daily. Its technicians access the well through QAII security.
The ownership of the well came up recently when technicians attempted to conduct checks of water connection at the QAII at the Ruimveldt facility, but were later asked by management of the water company to suspend all investigations until further notice.
The complex houses a newspaper, radio and storage bond, as well as administration offices of QAII.
QAII claimed that the visits by technicians were in retaliation to a report carried in a newspaper it owned that GWI’s Managing Director, Dr. Richard Van-West Charles, benefitted from a fuel import and storage licence.
Dr. Van-West Charles later admitted that he told the technicians to stand down after he was requested to do so by Chairman of the GWI Board, Mr Nigel Hinds.
Hinds, when asked, said that ownership of the well was in question and GWI needed to probe this.
The Chairman said he would be releasing the findings of the probe. A meeting was held this week between GWI management and Ramroop, with the water company issuing a statement yesterday confirming indeed that the well is no longer in GWI’s control.
According to a GWI statement, its investigations were to ascertain in whose name the well located in the compound of Sanata Textile, Ruimveldt, was registered.
GWI said that during the meeting with Ramroop, it was agreed that “GWI will continue to service the well, which also supplies water to residents within its environs.”

GWI said that Dr. Ramroop indicated that he had bought the entire complex which included the well but “inherited the daily checks of the well by GWI .He assured GWI that he will not interfere with this arrangement.”
GWI said that based on information received internally, the well was maintained by Guyana Sewage and Water Works Commission (GS&WC) and when the merger occurred in 2002, resulting in the formation of GWI, the practice continued.
With regards to another property owned by QAII, and located at Camp and Quamina Streets, and which like the Sanata complex was not reflected on GWI database, the water company said that it has agreed to come to a settlement.
“Meantime, GWI is pleased to report that all outstanding monies owed to this utility by QAII have been settled amicably. QAII owns the building at 238 Camp and Quamina Streets, which housed two media outfits (Guyana Times and Television Guyana Ch. 28) and was willing to settle any outstanding rates for that property.
It should also be noted that the monies have already been paid to settle the account of the above address.”
GWI said it hopes to continue this relationship of “mutual understanding with QAII”, where bills are paid up to date for all of its commercial offices that utilize water services.
The revelations that NICIL, under the administration of Jagdeo, handed over the well to QAII, as part of the entire Sanata deal, would raise questions about what else has been given away.
It would be recalled that the Sanata transaction has sparked anger over the manner in which was done.
NICIL’s advertisement was for a part of the complex. When no one expressed interest, Ramroop somehow was allowed to make an offer for the entire complex.
Jagdeo later claimed that as a matter of principle, he had asked to leave the Cabinet meeting where the Sanata deal was being considered for approval.

 

September 07, 2016

Water well in Sanata Complex compound…Former Auditor General questions true ownership

The former Auditor General of Guyana, Anand Goolsarran said that it “baffles” him how a Guyana Water

Incorporated (GWI) well could be sold or given to Dr Bobby Ramroop. This is in light of revelations that Ramroop is the owner of such a well, located in the Sanata Complex compound, and that supplies some 9,000 residents of West Ruimveldt, D’Aguiar Park, Alexander Village and Meadow Bank
Goolsarran further pointed out that there is a need for the public to see the agreement of sale to ascertain whether the well was included in the sale price of the Sanata Complex. He also questioned whether or not the 9,000 residents of West Ruimveldt are paying the new owners for water usage, or if the state entity, GWI, is collecting payment for the water.
He further declared that the well can only be owned by the new owners if it is included in the sale agreement and was an asset in the balance sheet of Sanata Textile Limited. The other question he posed was whether the well was reflected as an asset in the balance sheet of GWI. He stated that if it is so, the well belongs to GWI and could not have been sold in the privatisation of the Sanata Complex.  This he noted is because the Sanata Complex is a separate legal entity and so is the GWI.
“You simply cannot take an asset that belongs to GWI and sell as part of the sale of Sanata.”
The former Auditor General stressed for the need of establishing “conclusively” whose well it is.
The controversy surrounding the well issue first came to light when a GWI technical team attempted to conduct inspection of a water connection attached to buildings within the Sanata Complex.
The GWI technicians and Ramroop’s management subsequently had a confrontation. Following the confrontation, the technicians were later asked to stand off and suspend all investigations until further notice by management at the utility company.
After questions by this newspaper to GWI officials, it was later confirmed that the ownership of the well was in question and GWI needed to do investigations.
GWI subsequently issued a statement on August 31, confirming that the well was no longer under its control. According to a statement by the company, the investigations were to ascertain in whose name the well located in the compound of Sanata complex, was registered.
After this was disclosed, it was agreed between Ramroop and the utility company that “GWI will continue to service the well, which also supplies water to residents within its environs.”
This is however highly questionable, as GWI will be servicing what is now a private well with taxpayers’ money.
GWI further said that Ramroop indicated that he had bought the entire complex which included the well, but “inherited the daily checks of the well by GWI”.

 

September 14, 2016

SARU keeps watchful eye on Sanata Complex well deal

Troubled by the makings of the deal, the State Asset Recovery Unit (SARU) says that without a doubt,

it is now “keeping a watchful eye” on the controversial situation involving a well that is located in the Sanata Textile Complex in Ruimveldt.
This was confirmed by Head of the Unit, Dr. Clive Thomas.
Thomas said, “I find it alarming that a public well can be sold as part of a deal to a private citizen. I can understand if the well is being leased but I just can’t wrap my head around the idea that Ramroop was gifted this state asset as part of some deal with the former regime. So we are definitely keeping an eye on this matter. It is marked on our list.”
For more than three decades, it was under the control of Government. Then in the late 2000s, a water well at the Sanata Textile Complex, Ruimveldt, was sold under questionable circumstances by the National Industrial and Commercial Investments Limited (NICIL) to Queens Atlantic Investments Inc. (QAII), a group of companies under the direction of Dr. Ranjisinghi ‘Bobby’ Ramroop.
Why the administration of former President Bharrat Jagdeo decided to sell the well which was managed by the Guyana Water Inc. (GWI) is now the big question. Jagdeo is a close friend of Ramroop.
While the well was located in the Sanata complex, it served and continues to serve over 9,000 customers in the Ruimveldt area, including D’Aguiar Park, Alexander Village, Meadowbank and West Ruimveldt.
Each month, GWI has been paying almost $3M in electricity bills for the well as well as sending its technicians daily. Its technicians access the well through QAII security.
The ownership of the well came up recently when technicians attempted to conduct checks of water

connection at the QAII at the Ruimveldt facility, but were later asked by management of the water company to suspend all investigations until further notice.
The complex houses a newspaper, radio and storage bond, as well as administration offices of QAII.
QAII claimed that the visits by technicians were in retaliation to a report carried in a newspaper it owned that GWI’s Managing Director, Dr. Richard Van-West Charles, benefitted from a fuel import and storage licence.
Dr. Van-West Charles later admitted that he told the technicians to stand down after he was requested to do so by Chairman of the GWI Board, Mr Nigel Hinds.
Hinds, when asked, said that ownership of the well was in question and GWI needed to probe this. The Chairman said he would be releasing the findings of the probe.
In the meantime, GWI in a statement to the press said that Dr. Ramroop indicated that he had bought the entire complex which included the well but “inherited the daily checks of the well by GWI.”
He assured GWI that he would not interfere with this arrangement.

 

October 9, 2016

The Sanata well belongs to us… GWI moves to recover over $200M owed by Ramroop

Weeks after several back and forth, the Guyana Water Inc. (GWI) is moving to recoup an estimated $200M  that it says is owed by Queens Atlantic Investments Inc. (QAII), a group of companies under the direction of Dr. Ranjisinghi ‘Bobby’ Ramroop.

According to GWI officials, the state-owned entity is convinced, based on several documents, that the well, located at QAII compound, Ruimveldt, was never transferred to QAII.

The well serves over 9,000 customers in the Ruimveldt, Meadow Bank and Alexander Village area.

Recently, the nation heard that the well was transferred to QAII when the Bharrat Jagdeo administration leased and then sold the Sanata complex in a privatization deal that was described as a sweetheart one.

According to documents seen by Kaieteur News, in 2002, former Minister of Housing and Water, Shaik Baksh, signed an order under the Water and Sewerage Act vesting several properties into GWI.

GWI’s Schedule of Fixed Assets lists the Sanata well as belonging to the state entity. There is other evidence too that suggests that the well is GWI’s.

For example, in the records of the Privatisation Unit/National Industrial and Commercial Investments Limited (NICIL), the state entity that handled the deal, there are several references to the well.

In one case, it speaks of a Memorandum of Understanding between G&C Sanata, the Georgetown Sewerage and Water Commissioners (GS&WC) and NICIL. GS&WC is the predecessor of GWI.

According to the NICIL documents, GS&WC took possession of the well in 1996, starting to manage its operations from then. The water from the well was for public consumption.

There is no evidence of the well being privatized to Sanata.

GWI recently said that it has been spending $3M monthly on electricity bills for the well.

GWI technicians had to access the well through QAII’s compound.

While GWI’s Managing Director, Dr. Richard Van West Charles had initially signaled intentions to go after QAII for outstanding monies, his board had issued a statement stating the well belongs to QAII and that GWI will continue to pay the electricity bill with the complex to continue receiving free water.

Ramroop is a close friend of former President Bharrat Jagdeo under whose rule the 18-plus acres property was privatized. He was also associated with now resigned Chairman of the GWI Board, Nigel Hinds.
The issue came to the fore several weeks ago when GWI technicians, reportedly as part of its drive to collect over $5B owed by consumers- domestic and commercial- across the country, started to conduct checks at QAII.
However, the GWI technicians were reportedly stopped by their management when they started investigations..”
GWI officials had insisted that while the well is in the compound of QAII, GWI has always maintained control of the well, ever since the 1970s when it was built.
It was emphasised that GWI technicians visit the well every day.
Asked why he ordered the GWI to leave the Ruimveldt compound, the Managing Director said he was asked by the Chairman of the Board, Nigel Hinds, to stay his hand.
When contacted, Hinds disclosed that indeed he asked Van-West Charles to cease the inspections at the complex as there were questions over the ownership of the well. Also there was the very real scenario of the visit being seen as retaliation.
The order to stand down came one day after the technicians had visited the site and not immediately, Hinds stressed.
The Chairman of the Board was also questioned about the possibility that his order for technicians to cease investigations would raise eyebrows over the fact that the sports organization over which he presides, the Guyana Amateur Basketball Federation (GABF), was recently sponsored by New GPC, a subsidiary of QAII.
Hinds is the President of GABF and a well-known auditor.

 

October 16, 2016

Ramroop meets GWI over $200M owed for Sanata well

The Guyana Water Inc. (GWI) on Thursday met with representatives of the Queens Atlantic Investments Inc. (QAII), to discuss the ownership of a water well in Ruimveldt.
The well is in the compound of QAII but the state-owned water company has been involved in a battle over ownership.
On Thursday, head of QAII, Dr. Ranjisinghi ‘Bobby’ Ramroop, met with GWI’s Managing Director, Dr. Richard Van West Charles, to discuss the payment of $200M-plus in arrears.
Ramroop reportedly went alone.
GWI is sticking to its contention that it owns the well.
Contacted yesterday, the Managing Director declined to go into details. He would only say that the matter is engaging GWI.
Ramroop was reportedly summoned since last week after several back and forth with GWI.
GWI wants to collect an estimated $200M that it says is owed by the group.
Last week, according to GWI officials, the state-owned entity is convinced, based on several documents, that the well located at QAII compound, Ruimveldt, was never transferred to QAII.
The well serves over 9,000 customers in the Ruimveldt, Meadow Bank and Alexander Village area.
Recently, the nation heard that the well was transferred to QAII when the Bharrat Jagdeo administration leased and then sold the Sanata complex in a privatisation deal that was described as a sweetheart one.
The news shocked the nation.
According to documents seen by Kaieteur News, in 2002, former Minister of Housing and Water, Shaik Baksh, signed an order under the Water and Sewerage Act vesting several properties into GWI.
GWI’s Schedule of Fixed Assets lists the Sanata well as belonging to the state entity. There is other evidence too that suggests that the well is GWI’s.
For example, in the records of the Privatisation Unit/National Industrial and Commercial Investments Limited (NICIL), the state entity that handled the deal, there are several references to the well.
In one case, it speaks of a Memorandum of Understanding between G&C Sanata, the Georgetown Sewerage and Water Commissioners (GS&WC) and NICIL. GS&WC is the predecessor of GWI.
According to the NICIL documents, GS&WC took possession of the well in 1996, starting to manage its operations from then. The water from the well was for public consumption.
There is no evidence of the well being privatised to Sanata.
GWI recently said that it has been spending $3M monthly on electricity bills for the well.
However, GWI technicians had to access the well through QAII’s compound.
Ramroop is a close friend of former President Bharrat Jagdeo under whose rule the 18-plus acres property was privatised.
GWI technicians, reportedly as part of the drive to collect billions of dollars owed by consumers – domestic and commercial users across the country, started to conduct checks at QAII.
However, the GWI technicians were reportedly stopped by their management when they started investigations.”
GWI officials had insisted that while the well is in the compound of QAII, GWI has always maintained control of the well, ever since the 1970s when it was drilled.
It was emphasised that GWI technicians visited the well every day.

 

March 01, 2017

NEW GPC finally coughs up millions owed to NICIL

New Guyana Pharmaceutical Corporation (New GPC), which is owned by Dr. Ranjisinghi “Bobby”

Ramroop, has finally coughed up the millions of dollars it owed to the National Industrial and Commercial Investments Limited (NICIL) on Government’s 10 percent shares in the said company.
This is according to Officer in Charge at NICIL, Horace James. The sum owed was approximately $5.7M for the years 2012, 2013, 2014 and 2015.
The NICIL official also stated that legal letters were sent to several Government agencies which owe NICIL over $200M.
The issue of the outstanding sums owed to NICIL by NEW GPC was revealed by a forensic audit that was conducted by Chartered Accountant, Anand Goolsarran.
Goolsarran, in his audit, stated, “In relation to the New GPC Inc., by Cabinet approval of October 1999 and September 2001, the Government had sold 60 percent and 30 percent respectively of its shareholding in the predecessor organization, the Guyana Pharmaceutical Corporation, to Queens Atlantic Investments Inc. for $658 million.
However, there was no evidence that the New GPC paid any dividends to the Government for its 10 percent stake in the company.
Contrary to Goolsarran’s findings, NICIL subsequently revealed that since privatization, it had in fact received $6.9M in dividends for its 10 percent minority shares in New GPC Inc. NICIL said that for 2007 it collected $495, 000. The entity noted, too, that in 2010, it received $2,665,000.
The auditor made it clear however that this information was never presented to him and as such he believes that NICIL should come forward and produce the evidence of the dividends collected.
“The big question is why? Why would anyone with God-given commonsense have a share in a company and simply be so lax with ensuring that they receive dividends? What is before us points to many corrupt things and Ramroop and the company’s former Chief Executive Officer, Winston Brassington, would have to explain this,” the financial analyst had expressed.

 

March 01, 2017

NICIL sends Chinese company final demand letter for outstanding US$5M on GTT shares

The National Industrial and Commercial Investments Limited (NICIL) has issued a final letter to Hong Kong Golden Telecom Company, demanding the outstanding payment of US$5m on the GTT shares. This is according to

officer in charge at NICIL, Horace James.
He said that it was last December that the State-owned entity announced that it would be pursuing the route of arbitration in the United Kingdom to recover the money owed.
“However, we have sent them a final letter before arbitration. The letter was sent to Hong Kong Golden Telecom, which owes the money. A letter was also sent to the company that signed as its guarantor, Golden Mabole, according to the documents we have here.”
The NICIL officer is adamant that the US$5M was not written off as was previously claimed. He insists it is still owed to NICIL. He told Kaieteur News yesterday that the matter is ongoing.
James said, “We are in the process of executing all the relief measures that are in the sales agreement in order for us to get it back. We have engaged our lawyers in the USA.”
He continued, “And we are using the lawyer who was involved in the sales agreement process and who helped us to draft the agreement. They recommended a company in the United Kingdom to help us in the arbitration whenever that time comes and when we are going there.”
The NICIL officer added, “It is important that we use a UK company because the arbitration will be held in London.”
James emphasized that NICIL is not only going after the recovery of the US$5M, but also interest costs, legal fees, the signatory for the agreement and even the person who guaranteed it.
He continued, “So that process has started and our lawyers have presented all the issues concerning the shares and said that it is a very good chance that we could get back the money.”
James was reminded that Minister of Joseph Harmon, who is also a NICIL director had brought back some documents from his infamous China trip which he received from Hong Kong Golden Telecom Company (HKGT), the company that bought Government’s shares in GTT.
In this regard, he confirmed that Harmon indeed submitted such documents.
He said, “The documents basically said that the purchaser of the shares indicated that they had a discussion with David Dabydeen and were under the impression that they were relieved from paying it. But that is not so. NICIL sold you something and so you owe us. You made an initial payment and so the second payment has to be made. That is our major contention.”
When Kaieteur News asked to see the document submitted by Harmon, James declined to share it, stating that it might be used as part of the arbitration proceedings. He does not want to make any more that would jeopardize the process.
It was in 2012 that NICIL sold the Government’s investment in GTT for US$30M of which the sum of US$25M was received. The balance, US$5M, was to be paid within a period of two years.
But there have been conflicting stories since that initial arrangement.
At one point, the nation was told that Guyana’s former Ambassador to China, David Dabydeen, facilitated a debt write-off to HKGT.
HKGT is a subsidiary of Datang Telecom International Technology (Hong Kong) Company Limited.
Kaieteur News understands that the purchase agreement between the Chinese company and Guyana was framed in such a manner that in the event of any legal issue, Guyana or HKGT would have to petition the United Kingdom courts.
NICIL had said that in an attempt to avoid costly and lengthy adjudication of the matter in the English Courts, it called on the government to encourage HKGT through diplomatic channels, to honour its contractual obligations.
NICIL said that HKGT alleged that following a series of communications with the former Guyana Ambassador to China, HKGT was assured that it was not required to pay the balance of US$5M.
This was because HKGT had not been granted the same minority protection rights enjoyed by NICIL—that is two representatives, instead of one, on the GTT Board of Directors. HKGT alleged that it was initially promised two seats by the then Government of Guyana.
NICIL said that HKGT also alleged that the decision to waive the US$5M was contained in a side agreement.
NICIL noted that it has not been able to verify HKGT’s claim of waiver and has requested the assistance of the Government of Guyana to verify the validity of HKGT’s assertion and the documents they produced to support same.

 

March 01, 2017

NICIL pussyfooting on retrieving lands gifted to China Railway

After a year of being in place, the Executive Board of the National Industrial and Commercial Investments Limited (NICIL) is yet to take action regarding a plot of Turkeyen land that was suspiciously gifted to China Railway Engineering Group during the PPP administration.
China Railway was a key construction partner during discussions on the controversial Amaila Falls Hydro Project.
In fact, the matter has never come up for discussion at a NICIL board meeting.
This was confirmed yesterday by Officer in Charge of NICIL, Horace James. The matter was one which was first brought to the attention of the media by the Alliance for Change (AFC).
Based on a publication in the Official Gazette, the party found that one acre of land at Plantation Turkeyen, East Coast Demerara, as shown on a plan by D. Ramkarran, a sworn land surveyor and dated June 18, 2013 and signed by the Minister of Finance, Dr. Ashni Singh on April 4, 2014 was transferred to NICIL.
NICIL then transferred the land to China Railway Guyana Incorporated. There was no cost attached to the land transfer.
Local critics have since noted that moves should be made for the land to be repossessed. There have also been calls for sanctions to be imposed against those involved in the illicit transaction.
The issue was also flagged by Chartered Accountant, Anand Goolsarran in his forensic audit report on NICIL.
In the report, Goolsarran said that the land which was gifted to China Railway was initially GuySuCo’s. Kaieteur News had previously reported that GuySuCo was ordered to halt developmental negotiations because former President, Bharrat Jagdeo had “other plans” for the land.
The land was gifted to the PPP government and it subsequently gifted it to NICIL. NICIL then disposed of the land to three companies, National Hardware, Multi Cinema Guyana and China Railway.
National Hardware and Multi Cinema secured sweetheart deals. National Hardware got 104 acres at $4.9M per acre while, Multi Cinemas Guyana secured 10.002 acres at $16M per acre. Both companies got good deals as another company was made to pay $32M per acre. Nevertheless, China Railway got an acre for free.
Records referred to in Goolsarran’s report indicated that NICIL gifted the land to China Railway the very day that Government gifted the land to NICIL.
Goolsarran’s report says that Sub lot AA at Plantation Turkeyen was East Coast Demerara transferred as a gift via order No.16 2014 the same day that it was vested in NICIL via order No. 15/2014. Both orders were signed by the then Minister of Finance, Dr. Ashni Singh.

 

September 05, 2017

More evidence emerges of wheeling and dealing with Providence lands…‘Bobby’ Ramroop’s deputy buys plot for $168M; flips it for $570M

The questionable Providence lands transaction involving businessman Brian Tiwarie and

Chinese-owned BaiShanLin was not the only one of its kind.
There are indications now that a right hand man of Dr. Ranjisinghi ‘Bobby’ Ramroop also benefitted from 28.8 acres for $173M ($6M per acre). Ramroop is a close friend of former President Bharrat Jagdeo whose companies questionably benefitted from billions of dollars in contracts and state assets.
However, shortly after acquiring those Providence lands, without lifting a finger and laying the required infrastructure works, and in breach of his agreement with the Central Housing and Planning Authority (CH&PA), Roopnarine ‘Ravie’ Ramcharitar resold those lands for three times the price he paid– over $570M (US$2.8M).
It was a well-thought out plan, according to CH&PA documents.
Ramcharitar, who was a former director of the Berbice Bridge, registered a company named Luxury Realty Inc. in October 2013. He was listed then as both the Director and Secretary.
An agreement with CH&PA listed the sale price of those 28.8 acres as $172.8M.
However, it appeared that shortly after signing the agreement, in August 2014, CH&PA senior officials at the Brickdam office facilitated a new sale with an unsuspecting US-based Guyanese.
That Guyanese forked over US$2.8M, during a signing at the CH&PA offices.
Heading the Ministry of Housing at that time was former minister, Irfaan Ali.
His government- the People’s Progressive Party/Civic- lost the early general elections that were held 10 months later in May 2015.
That transaction was one of several questionable ones involved lands stretching from Eccles to Providence, sold to a number of close friends of the previous administrations. There were several hundreds of acres involved.
Several plots of those lands remained undeveloped despite conditions that construction of the infrastructure had to start within six months, in some cases.
The Coalition Government has started moving to repossess some of those lands.

Ramcharitar’s transactions, of benefitting from a sweetheart deal blessed by CH&PA, would mirror that of Tiwarie, owner of BK International.
Tiwarie’s company, Sunset Lakes Inc, managed to acquire 100 acres of lands not too far from Ramcharitar’s.
However, eight weeks after securing the lands from CH&PA for US$2.2M (approximately $440M), Tiwarie turned around and flipped the company to BaiShanLin for US$8M ($1.6B).
BaiShanLin is a Chinese investor that ran into trouble over its operations here and had its forest lands taken away by the Coalition Government.
BaiShanLin, now facing financial problems, was unable to pay Tiwarie the US$8M it promised and early last year, the businessman took BaiShanLin to court, asking for his balance of US$4M. Tiwarie also demanded back his company Sunset Lakes and wanted the court to forfeit the US$4M that BaiShanLin had advanced him.
On the lands currently, BaiShanLin had started to build a number of luxury homes, announcing prices upwards of $50M.
However, all that remains now is the fence and ghostly, unfinished properties. There has been little work in the last two years.
BaiShanLin and its principal, Chu Hongbo, now a Guyanese citizen, are now reportedly concentrating on gold mining.
Last week, the lands were in receivership as Sunset Lakes had borrowed heavily. They were being advertised for sale.
Receiver/Manager, accountant Nigel Hinds, announced that he was inviting tenders for local and foreign parties interested in purchasing the 100 acres, either entirely or in parts.
This latest development would continue to anger persons who have applied for house lots and homes from CH&PA, but are being told there are no lands.
There are more than 20,000 applications pending at the CH&PA, with Government announcing plans to build duplexes and apartments for low income families in the short term.
Large swaths of lands behind Republic Park and Providence have been sold under questionable circumstances to several private developers who were looking to cash in on the booming housing drive between 2010 and 2014.
CH&PA has been promising to go after the private developers for breaching their conditions, including the building of infrastructure like drains and roads.

 

September 06, 2017

Wheeling and dealing with Providence lands…Ramroop’s deputy made US$2M in one day of buying and selling

A top deputy of businessman, Dr. Ranjisinghi ‘Bobby’ Ramroop, not only managed to close a sweet

land deal with Central Housing and Planning Authority (CH&PA) in August 2014, but on the same day, within a space of a few hours, he turned around and under the watchful eyes of the agency, sold it to an overseas buyer.
With the blessings of CH&PA, without lifting a finger, Roopnarine ‘Ravie’ Ramcharitar made a whopping US$2M ($400M) profit on the spot.
The incestuous relationship involving the then management of CH&PA, a few businessmen and the members of the previous administration, are all coming out now and could involve charges.
Heading the Ministry of Housing in 2014 was former minister, Irfaan Ali.
Ramroop is a close friend of former President Bharrat Jagdeo. Ramroop’s companies, including New GPC, benefitted from billions of dollars of concession and contracts under questionable circumstances from previous administrations of the People’s Progressive Party/Civic (PPP/C).
The Coalition Government is sitting up and taking notice and likely to start taking actions as the matter could involve some criminal intent, a senior official disclosed yesterday.
According to CH&PA documents, on August 28, 2014, Director/Secretary of Luxury Realty Inc., Ramcharitar, a senior official in the Queens Atlantic Investment, signed off on documents which handed him rights to 28.8 acres of Providence lands.
That same day, August 28, 2014, the New York-based investor was made to pay a hefty price of US$2.8M (over $570M) for lands that were bought for just over US$800,000 ($173M).
The details are all contained in CH&PA documents that include the Agreement of Sale and Purchase.
Under the agreement, the Certificate of Title was to be transferred to Ramcharitar’s company, Luxury Realty Inc., after all the infrastructure works would have been completed.
Under the agreement, Ramcharitar was supposed to develop the lands purchased for the construction and sale of homes “only”.
Luxury Realty agreed to complete the infrastructure works in eight months.

From indications, no infrastructure works, including roads and drainage were done by Ramcharitar within that eight-month period that he was given.
CH&PA did not take actions for Ramcharitar breaching the timeframe conditions.
In fact, the documents indicate that the eight-month period passed without any sanctions.
CH&PA officials then accommodated representatives from Luxury Realty, and the overseas buyer, and conducted a sale in the CH&PA’s offices, Brickdam. The monies were paid over to Ramcharitar and his representatives.
There are no indications that the profit taxes were ever paid over by Ramcharitar to the Guyana Revenue Authority.
Ramcharitar, who was a former director of the Berbice Bridge, registered a company named Luxury Realty Inc. in October 2013. He was listed then as both the Director and Secretary.
That transaction was one of several questionable ones involving lands stretching from Eccles to Providence, sold to a number of close friends of the previous administrations. There were several hundreds of acres involved.
Several plots of those lands remained undeveloped despite conditions that construction of the infrastructure had to start within six months, in some cases.
The Coalition Government has started moving to repossess some of those lands.
Ramcharitar’s transactions, while benefitting from a sweetheart deal blessed by CH&PA, would mirror that of Tiwarie, owner of BK International.
Tiwarie’s company, Sunset Lakes Inc, managed to acquire 100 acres of lands not too far from Ramcharitar’s.
However, eight weeks after securing the lands from CH&PA for US$2.2M (approximately $440M), Tiwarie turned around and flipped the company to BaiShanLin for US$8M ($1.6B).
BaiShanLin is a Chinese investor that ran into trouble over its operations here and had its forest lands taken away by the Coalition Government.
BaiShanLin, now facing financial problems, was unable to pay Tiwarie the US$8M it promised and early last year, the businessman took BaiShanLin to court, asking for his balance of US$4M. Tiwarie also demanded back his company Sunset Lakes and wanted the court to forfeit the US$4M that BaiShanLin had advanced him.
There are more than 20,000 applications pending at the CH&PA, with Government announcing plans to build duplexes and apartments for low income families in the short term.
Large swaths of lands behind Republic Park and Providence have been sold under questionable circumstances to several private developers who were looking to cash in on the booming housing drive between 2010 and 2014.
CH&PA has been promising to go after the private developers for breaching their conditions, including the building of infrastructure like drains and roads.

 

September 7, 2017

Govt., commercial bank battle over BK/BaiShanLin housing lands

In a clear move that its patience is running thin, Government has filed court actions to take back land in Providence, East Bank Demerara, which was sold in 2014 to businessman, Brian Tiwarie, but flipped shortly after to a Chinese investor.

The lands were recently advertised for sale by Receiver/Manager, Nigel Hinds, who was appointed by a commercial bank after Sunset Lakes, which controlled the 100-acres, was unable to make its loan payments.

Sunset Lakes was formed by Tiwarie weeks after he acquired the land. He turned around and sold it to the local owner of BaiShanLin, a Chinese company which had spread its tentacles into a number of business sectors but ended up in financial troubles.

Tiwarie was one of several businessmen who received large swaths of land on the East Bank under questionable circumstances.

Yesterday, the Ministry of Communities, under  which the Department of Housing falls, made it clear that it has the right to go after the lands and after Sunset Lakes, now controlled by BaiShanLin’s local principal, Chu Hongbo.

However, the government will have to contend with the bank which wants back its money from Sunset Lakes. The bank is claiming first lien on the lands.

Yesterday, the ministry said that the Central Housing and Planning Authority (CH&PA) has commenced court proceedings in an effort to repossess the plot of land, which was recently advertised for sale by Sunset Lakes.

In a paid advertisement in at least two daily newspapers, dated August 30, 2017, it was stated “The Receiver-Manager of Sunset Lakes Inc., invites tenders for local and foreign parties interested in purchasing 100 acres of land en bloc or less, located in Providence…”

However, the ministry disclosed that since July 20, 2017, CH&PA through an external attorney, Robert Ramcharran, attached to the law firm Luckhoo and Luckhoo, initiated legal action in the High Court of the Supreme Court of Judicature against Sunset Lakes Inc. as it relates to property situate at Parcel 130 Plantation Providence, East Bank Demerara.

Among other things, the legal action is seeking declaration that CH&PA is entitled to rescind the Agreement of Sale and Purchase made and entered into at Georgetown, Guyana between the authority and the defendant on February 7, 2014.

CH&PA is also seeking an order rescinding the Agreement of Sale and Purchase made as well as an order that the claimant (CH&PA) has the right to refund to Sunset Lakes the sum of $458,180,000, representing the value of the land. The court is also being asked to allow for CH&PA to collect 10% of the sum paid as a penalty for breach of the terms and conditions of the agreement– about $45,818,000.

CH&PA is also asking orders directing the Registrar of Lands to recall and cancel the Certificate of Title regarding the land and to have it re-registered as belonging to the authority.

An application was also made for the court to order that the land be handed over to the possession of CH&PA.
The land was sold in 2014 by CH&PA to Tiwarie, a contractor, for development into a gated community.
However, eight weeks after securing the lands from CH&PA for US$2.2M (approximately $440M), Tiwarie, who owned Sunset Lakes, turned around and flipped the company to BaiShanLin for US$8M ($1.6B).
BaiShanLin was unable to pay Tiwarie the US$8M it promised and early last year, the businessman took BaiShanLin to court, asking for his balance of US$4M. Tiwarie also demanded back his company Sunset Lakes and wanted the court to forfeit the US$4M that BaiShanLin had advanced him.
On the lands currently, BaiShanLin had started to build a number of luxury homes, announcing prices upwards of $50M.
However, all that remains now is the fence and ghostly, unfinished properties. There has been little work in the last two years.
BaiShanLin and its principal, Chu Hongbo, now a Guyanese citizen, are now reportedly concentrating on gold mining.
There are more than 20,000 applications pending at the CH&PA, with Government announcing plans to build duplexes and apartments for low income families in the short term.
Large swaths of lands behind Republic Park and Providence have been sold under questionable circumstance to several private developers who were looking to cash in on the booming housing drive between 2010 and 2014.
Many of those parcels have not been developed as the housing market stagnated. Many of the developers, some of them businessmen close to the previous administration, were left in financial difficulties.
There is evidence that a number of the developers may have illegally sold the lands they have committed to develop, for millions.
The evidence that is emerging now speaks of some developers breaching their conditions of sale, by illegally selling off to overseas investors and others.
There is no word whether the applicable profit taxes were ever remitted to the Guyana Revenue Authority.

IRFAAN responds

There is another transaction similar to Sunset Lakes.

In August 2014, Luxury Realty, owned by Roopnarine ‘Ravie’ Ramcharitar, a top deputy of Dr. Ranjisinghi ‘Bobby’ Ramroop, bought and sold a plot– 28.8 acres all in the same day to a foreign buyer.

Ramcharitar paid $173M to CH&PA. That same day, in the presence of CH&PA, he sold it to the overseas businessman for over $570M (US$2.8M).

Heading the ministry then was former Housing Minister, Irfaan Ali.

Yesterday, he issued a statement on the matter which has been making the news recently.

“I wish to respond to the distasteful, mischievous and dishonest articles of Kaieteur News in relation to the Providence, East Bank Demerara lands. I continue to read with shock the continuous misrepresentation of facts by the Kaieteur News. These facts have been in the public domain on many occasions for years now.

Why is it that the newspaper continues to ignore the fact that the names of all private developers were made public on many occasions? This is not a new discovery.

Secondly, the list was requested in the National Assembly and submitted, there was no secret or hidden agenda. All these proposals by developers and investors were responses from expression of interest notices publicly advertised.

Further, the terms and conditions of all the contracts are the same. All the developers are bounded by the same conditions. It is a total misrepresentation to suggest otherwise and at some point basic decency and honesty must be adhered to in reporting. There was no preferential treatment for any of the developers.

The only motive of the Ministry of Housing was to facilitate private investment and capital in expediting and expanding the housing and construction sector to the benefit of the economy.

 I remain proud of the expansive development, investment and benefit that the East Bank Development has brought to thousands of Guyanese.

In relation to how companies are owned and operated; the Ministry did not involve itself in the operations of the developers. The conditions of sale are listed in the agreement with the developers and any Government can act based on the agreement.”

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Read also about:

• The Tale of Bharrat Jagdeo and his best friend Bobby Ramroop

• The Media & Telecommunication Heist of Guyana

• The Berbice Bridge Scheme

• The Marriott Scheme

 

 

 

 

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