Pradoville Two deal…SARU requests Public Security Ministry to investigate criminal aspects

Oct 18, 2015 News

---

The State Asset Recovery Unit (SARU) over the weekend, made a formal request to the Ministry of Public Security to investigate the criminal aspect of the Pradoville Two deal.

Earlier this week, SARU completed a report which stated, that in 2010, the Bharrat Jagdeo Cabinet made a decision authorizing the National Industrial and Commercial Investments Limited (NICIL) to privatize state lands. NICIL is the body tasked with overseeing the privatization of state assets.
It reportedly spent more than $200M to develop the sea front community without the knowledge and blessings of the National Assembly and other relevant bodies.
The said lands were then secretly sold to the former Ministers and known friends and associates of the previous regime. At the time of the sale, the report said, the lands were grossly undervalued and sold at a price substantially below the market value thereby depriving the state of its full benefits.
SARU said, “There is a direct link between the misconduct and the abuse of powers and duties of their position. The former Cabinet members knew they were doing a wrong in transferring state lands into their names and that of their acquaintances for undervalued market prices for the land. The lands were sold for $114 per square foot at the time.”
“Public officers ought to carry out their duties not for the benefit of themselves but for the benefit of the public as a whole. If they neglect or misconduct themselves by their actions in the course of their duties this may lead to a breach or abuse of the public’s trust. The act of the Cabinet members for their benefit is serious enough to amount to an abuse of the public’s trust.”
In a letter addressed to Public Security Minister, Khemraj Ramjattan, SARU said that based on its findings, it is requesting that Ramjattan’s Office proceed to further investigate unlawful aspects of this matter, with the aim of establishing whether criminal action should be instituted.
“It is the duty of this Unit in the Ministry of the Presidency to ensure that no Minister of Government in Guyana would be the beneficiary from any acts of misconduct or unlawful conduct while being holders of Public Office.”
SARU also informed the Public Security Minister that it has also forwarded its report to the Attorney General (AG) and Minister of Legal Affairs, Basil Williams, along with a copy of a Legal Opinion on the potential misconduct in Public Office by the former Ministers.
The document on the Legal Opinion says that there is legal scope for the argument of willful neglect by the former ministers in performing their duties without reasonable excuse or facilitation to an extent amounting to an abuse of the public trust.
Further, based on the Cases cited, the document outlines that the Attorney General and Minister of Legal Affairs, has Legal Standing on this matter.
Once sufficient information and evidence is gathered by his Chambers, Williams has said that a civil action against the former Cabinet Ministers will be instituted. He had explained to the media that former President Bharrat Jagdeo could face prosecution.
The AG argued that Jagdeo may be immune from prosecution for certain decisions he may have taken as President, provided these were legal actions. Misappropriating state lands may not be within his purview, Williams said.
“The (Pradoville Two) matter however, also raises the question of potential unlawful conduct. A case in point: two former Ministers (Priya Manickchand and Robert M. Persaud) bought lands and resold them at $100 million and $90 million respectively, which is well over fifty times the price they paid for the said lands, in a space of three and four years respectively, notwithstanding the following limitation Clause in the Agreement of Sale,” the Unit informed the Minister.
The Clause being referred to states, “The transferee shall not be at liberty to sell, lease, transfer or part possession of the said property within ten years of transfer without the written consent of the Minister responsible for Housing …”
Williams had said that the very nature of this situation is on par with others from the UK and Belize as outlined in the SARU report. He said, “It is a case where they used their office to profit unlawfully and at the expense of the state.”
The Legal Affairs Minister said that while the law may state that individuals could have brought the case of misfeasance in public office before the court, the Caribbean Court of Justice extends that power from individuals to the AG.
“So the AG could bring such an action but also criminal charges could be laid and that is misconduct in public office. That would be swifter while the civil side would take a while.”
The AG also made it clear that he cannot institute charges in this case; the person constitutionally empowered to do so is the DPP. He noted that while the Guyana Police Force can also institute such charges, should it act without the advice of the DPP, then she also has the power to intervene and take over the prosecutions started by the police.
“SARU sent its findings and I would recommend that they be sent to the Director of Public Prosecutions (DPP) and the Minister of Public Security, Khemraj Ramjattan. That would be for the criminal side.”
The SARU report however lists the DPP, Miss Shalimar Ali-Hack as a beneficiary of the controversial Pradoville Two deal. The report said that on September 7, 2011, the DPP bought Lot 184 Sparendaam, ECD, Block IV, which is 0.2767 acres of land.
Asked how this looming situation of conflict of interest would be dealt with, Williams had said, “She would have to recuse herself in the determination of the matter.”

---

---