Latest update February 2nd, 2025 8:23 AM
Mar 11, 2015 News
– Pegasus owner says new hotel has $25M monthly costs
Head of the Marriott Hotel project, Winston Brassington, has denied that a recent inspection to ensure the facility meets required standards has exposed problems, leading to a local contractor being hired to correct works.
Brassington, head of the Atlantic Hotel Inc. (AHI), the special company formed to manage the project, took to Facebook yesterday after Chairman of the Alliance For Change (AFC), Nigel Hughes, in a post, said that unconfirmed reports indicate problems.
Hughes said that the contractor, which he did not name, had been asked to leave the project after Marriott officials came in to inspect works to ensure that it abides by standards of that international chain.
This was after the Government of Guyana and Shanghai Construction Group (SCG), “rejected” local labour finding them “inadequately equipped” and “uncompetitive”.
Hughes said that a prominent local contracting company of long standing along with its local labour force, has been retained to effect remedial works and complete the project.
While Hughes did not name the local company that has been retained, Kaieteur News understands that it is Nabi and Sons.
Hughes believes that the opening which was scheduled for April is no longer a realistic option.
However, Brassington in a quick response to the statements of the AFC official, said that the post is grossly misleading.
He insisted that the Chinese contractor has not been sacked.
“SCG, the Chinese contractor, is the contractor on site and fully so. Over the last year, increasing use of local inputs has been made with our support. The use of a local contractor firm to assist with completing the punch list is ongoing, particularly since there was a reduction of the Chinese work force during the Chinese New Year celebrations, recently concluded.”
Brassington said that it is not unusual for local companies to be used.
“Other local firms have been used and continue to be used in various aspects of the works. All of these works are being paid by SCG as part of their contract. Marriott is already training over 150 staff members at the hotel who occupy many of the sections and the hotel will open shortly.”
Brassington said that all parties involved have recognized the high quality of work that has been executed by the contractor.
“It is quite usual for a punchlist to be produced at the end and these works remedied, which is what is largely occurring inside the hotel.”
There were questions raised as to why the contractor was not rectifying the works, but Brassington did not offer additional details.
ýMeanwhile, owner of the Pegasus Hotel, Robert Badal, has called on President Donald Ramotar to disclose the amount of taxpayers’ dollars being spent monthly to support Marriott Hotel.
Pegasus is located adjacent to the Marriott Hotel, in Kingston.
Recently, Government admitted that it failed to draw down on over US$34M from investors after a court case was filed blocking the transfer of the Kingston lands from Government.
Government spokesman, Dr. Roger Luncheon, admitted recently that it spent more than US$51M from taxpayers’ money to fund the hotel’s construction. The monies will be refunded to Government as the court case would have been resolved, he said.
However, according to Badal yesterday, now that the Government has finally disclosed that it has spent more than US$50M of taxpayers’ money to build a hotel for the Marriott, it must now be more imperative for Government to say how much AHI is paying on a monthly basis to expat staff and other staffers, electricity, security and maintenance, among other things.
“More than $25M is being spent each monthý to support this rich multi-national with no benefit to the taxpayers. This is in harsh contrast to its refusal to pay UG workers an increase in wages and salaries and improve facilities badly needed to raise the quality of tertiary education in Guyana.”
The businessman said that Guyana is a poor country, with its people among the most taxed in the world.
“From high corporate tax, to high payroll taxes, 50 percent tax on fuel, 16 percent Value Added Tax (VAT)
to name a few, it is immoral and criminal to be misusing taxpayer money in this way to benefit a rich multi-national. This amounts to a blatant abuse of public office.”
The hotelier, who has been criticizing the numerous tax and other concessions granted to Marriott, noted that it is the taxpayers who are ultimately saddled with the burden.
“It has paid no taxes here, contributes nothing economically, but has created dislocation in the local hotel industry, preying on our staff and support services, and bringing nothing of its own. Yet this corrupt Government is diverting the taxes received from local hotels to this group.”
Badal said that this will come at a time when President Ramotar is seeking re-election and when his Government continues to misuse public resources.
“This amounts to contempt for the people of Guyana. This discrimination against us must not be tolerated in our own country. Guyanese must come together and elect a transparent, accountable, and responsible Government which puts our people and businesses first.”
The 197-room hotel, built on a six acre plot of land will include a casino, nightclub, restaurant and conference room.
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