Land giveaways…Opposition urges Chinese Embassy to get companies away from ‘secret deals’

Jun 21, 2014 News

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“Chinese government, embassy must look at this because it establishes for these companies, a reputation for disrespect of our laws, you cannot go to China and do this. It would not be possible,” Carl Greenidge

“Highly improper” and “the height of dishonesty” were phrases used by A Partnership for National Unity’s, (APNU)

Shadow Minister of Finance,
Carl Greenidge, to describe the gifting of two prime pieces of lands to the China Railway First Group (CRFG).
Considering the fact that National Industrial and Commercial Investment Limited (NICIL), which is headed by Winston Brassington, seems to have a history of “gifting state assets,” the former Finance Minister made a strong call for the Chinese government and its Embassy to insist that its companies refrain from secret deals.
They should consider the implications and consequences that will be had from “colluding with agents of the government in disrespecting the national laws of the country.”
The gifting of the two plots of land was made known by the government holding agency, as it sought to justify giving away one acre of Turkeyen land to the Chinese company.
“The price on the contract with CRFG was executed in September 2012 and expired in June 2013. Given the expected delay of postponing Financial Close until the latter part of 2013, it was necessary to have the EPC price extended.”
On the second “negotiated” matter, NICIL explained that the completion of the access road was a prerequisite to starting construction of the main project; local contractors were unlikely to complete the most difficult section of the road (Section 7) in 2013 and it was therefore considered wise to engage CRFG to complete the road, but at a reduced price to its tender.
There was a reduction of the amount of its original bid of US$11.2M to a cash contract price of US$8.5M; along with the transfer by way of Deed of Gift, from government of two lots of land.
This, Greenidge said, was a most improper and unsound deal much to Guyana’s loss.
He said, “This deal is the height of dishonesty and I don’t want this to be treated as though it is an overreaction because it is highly improper. If we had to depend on NICIL and the People’s Progressive Party we would not have known this.
“It is only when one stumbles upon the gifting of lands then they decide to come out and justify. That is not good enough.”
NICIL had said that there were key matters which were discussed with the Chinese firm. The two matters were in relation to the Contract Price and that of the Amaila Falls road.
Greenidge said that the holding company was never established to serve as a conduit for hiding the transfer of state assets to private individuals or companies.
“That was never its function. It was established in the context of holding, and managing assets arising from privatization. It is not meant to be an entity that is involved in bribing companies which seems to be part of this exercise.”
NICIL said that in early 2013, with the expectation of the Amaila Falls construction project starting later that year, “negotiations were held with China Railway First Group on key matters related to the start of the project.”
This, NICIL said, resulted in two pieces of land being committed to CRFG.
The two pieces of land were one acre at Liliendaal and over seven acres at Friendship, East Bank Demerara. The latter is in the process of being transferred.
CRFG would use the land at Liliendaal for building its Head Office and the land at Friendship for a materials marshalling yard and also a fixed price contract in preference to a measured works contract.
Greenidge said that NICIL has been involved in a number of instances where it handed out millions worth in state assets as gift.  “It has a history of this kind of behaviour.”
He added, “I think when we come to examine, properly, the full extent of the transfer of the lands we will find that no time in the history of this country have state lands been transferred on this scale to private individuals or companies.
“No time in our history has this happened at such a scale and that is what we are witnessing.”

The APNU member said that when it comes to this recent revelation, there are several things which come to the fore. Greenidge said that government has misrepresented the facts as it relates to the change in the arrangements.
“So we not only have a misrepresentation of the facts, but we also have an abuse of office when we take into consideration the functions of NICIL,” Greenidge explained.
“The Chinese Embassy has to look into this and see what impact these side agreements or secret agreements and improper arrangements between themselves and agents of the government of Guyana have on the image of China and its companies.
“And I am speaking as someone who was part of a political party that welcomed the Chinese into this region, and had very close relations with them and it is sad to see that the officials would sit by and allow these types of arrangements and deals involving gifts to go on.”
“All these arrangements infringe our national laws pertaining to procurement. It has to be something that the Chinese government must look at, because it establishes for these companies, a reputation for disrespect of our laws or rather, colluding with agents within the government to disrespect our laws and you cannot go to China and do this. It would not be possible.”
The Parliamentarian then urged the members of the Chinese Embassy that however irresponsible the government of Guyana wants to be, “be responsible with what you are doing so that relationships established in the face of hostile political reactions from the west are preserved and not undermined or lost. This is an unacceptable line along which to go.”
He said that Guyana’s laws do not apply for these secret deals. He reminded that the Parliament passed in 2012, resolutions 14 and 15 which said that Government must report to Parliament on the transfer of lands but even up to this date, the government failed to report on these matters.
He added, “We see lands being handed out by the PPP without reference to communities to which either these lands have traditionally belonged to or the communities have a special interest in that land. They never consult the people in those areas….”
“One has to draw the conclusion that Government has embarked on a deliberate policy on handing over state assets to three sets of people; Indian firms, Chinese firms and Caribbean firms with special political interest to them,” the former Finance Minister concluded.

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