Casino licences woes deepen…Buddy’s US$25M hotel stalled after previous Govt. cancelled deal

Mar 08, 2016 News

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A week after Guyana learnt that a casino licence was promised to Church Street hotel, Sleep In, there are disclosures now that another one was also committed to a Sheriff Street development.
However, in January last year, months before early general elections in May, the Guyana Office for Investment (GO-Invest) cancelled a Memorandum of Agreement (MoU) it signed with businessman, Omprakash ‘Buddy’ Shivraj.
It appears that the casino licence promised to Shivraj was instead re-assigned to Sleep In which is currently expanding one of its hotels on Church Street, with an opening set for May.
Shivraj’s hotel, located around his pool hall facilities on Sheriff Street, as a result of the cancellation, is now stalled and the businessman is examining his options.
According to Shivraj, a businessman who has investments in housing schemes and other real estate ventures throughout the coastland, he became aware that a casino licence was promised to Sleep In last week, following a report in Kaieteur News.
He believes now that the reason given by GO-Invest was flimsy
He said that this was a surprising turn of events as he had applied to the previous Government a number of years now for one.
Under the gaming laws, only three casinos are allowed in each of Guyana’s 10 Regions.
Already, Princess Casino at Providence has one with another committed for the state-owned Marriott Hotel in Kingston, Georgetown.
The remaining one, it appears, was promised to Shivraj. As a matter of fact, Shivraj managed to sign a MoU with GO-Invest for the building of a hotel and casino on Sheriff Street at his entertainment spot. It would have involved a foreign investor.
Shivraj had gone ahead and spent up to US$7M ($1.4B) to construct two buildings-—one a seven-storey building and another, eight storey. It has been stalled for several months now.
The businessman explained that the US$25M project which would have comprised 160 rooms, 28 luxury apartments, tennis court on the roof, a five-storey parking lot for 100 vehicles, bowling alley, banquet hall, fine dining restaurant, pool on the second floor, is stalled.
It was targeted to be completed in 18 months and would have also included pool-side dining, gym and helipads on top the building as well as a viewing deck on the 8th floor (roof).
Cancelled
However, it seemed that the Donald Ramotar administration changed its mind on the lone remaining casino licence going to Shivraj.
On January 10 last year, Shivraj was written to by GO-Invest’ Chief Executive Officer (CEO), Keith Burrowes, who said that the entity was withdrawing the MoU for the Buddy’s Hotel Royale.
Burrowes claimed that a GO-Invest officer wrongfully signed the agreement for the project.
The person who should have signed it was the Minister of Finance.
At the time, under the People’s Progressive Party/Civic (PPP/C) Government, the Minister then was Dr. Ashni Singh.
“Thereby, the officer of the Guyana Office For Investment, who has since concluded the above stated Memorandum of Understanding with you, intimating acceptance of such Memorandum of Understanding would have acted beyond legal, customary and precedential authority; that being ‘ultra vires void and of no legal effect’,” Burrowes said in his letter to Shivraj cancelling the MoU.  Burrowes has since resigned from GO-Invest.
The former CEO, in urging Shivraj to accept the cancellation of the MoU– a legal issue – said that he looks forward to working with the businessman in the advancement and completion of the establishment of the Sheriff Street hotel.
“Be assured of our current and future intentions to support you in the establishment of this venture.”
The cancellation letter was copied to Dr. Roger Luncheon, former Head of the Presidential Secretariat; Anil Nandlall, former Attorney General and Uchenna Gibson, GO-Invest.
The investment would have created at least 150 jobs.
Shivraj said that he will be seeking to meet with the David Granger administration as the casino licence is crucial to the multi-billion-dollar investment.
A quiet deal
Guyana only learnt of the casino licence to Sleep In last week after a letter to the Editor from businessman/ex-Magistrate, Kalam Juman-Yassin, who objected to reports that one was going to be housed on Church Street.
Juman-Yassin insisted that 150-room hotel, is too close to a nearby church and mosque and the Merriman’s Mall where a children’s play area is being developed. He also said that Church Street was in a residential area.
However, principal of the hotel, Clifton Bacchus, did not see a problem. In confirming a casino licence was promised, he said that no neighbour has raised any objections.
He said that every major place of entertainment is close to a church. “Palm Court, Princess Ramada, Rio—just name them and a church is nearby.”
The hotel, he disclosed, had signed an agreement under the Donald Ramotar administration for the hotel and casino.
The casino would have received the necessary permits for operations once a number of conditions are met, including the construction of a 150-room facility.
Bacchus also has another hotel, Sleep In International, on Brickdam. That too is close to a church, in this case the Church of the Immaculate Conception, commonly called the Brickdam Cathedral.
He has sunk millions of dollars in the construction of the Church Street venture.
Bacchus is hoping that the hotel will be opened in May. It will provide up to 300 jobs.
In a follow-up to his statements on the casino to this newspaper, Bacchus had also issued a letter to the Editor.
He pointed out that Princess Casino in Providence is located not far from a church and a block away from a mosque in Nandy Park.
It would also be recalled that another casino licence was also promised to embattled New York-based real estate mogul Ed Ahmad.
In 2008, he made a proposal to Bharrat Jagdeo administration for the building of a hotel on a sports ground on Thomas Lands, overlooking the army’s headquarters at Camp Ayanganna.
The deal fell through after Ahmad was charged in the US for real estate fraud and he failed to make lease payments on the lands which is said to belong to the Guyana Public Service Union.
The issue of casino was a touchy one for the country when it was first announced in the mid-2000s. There were concerns from churches and other groups about the social implications but it was agreed that no locals would be allowed in when the first casino opened its doors at Princess Hotel, East Bank Demerara. The regulations said it was only to be accessed by guests or visitors.
Even Pegasus Hotel, with its clientele, was turned down for a casino licence.
However, Princess Casino has since relaxed its rules, allowing locals to enter once they produce identification.
Government is reportedly contemplating tabled amendments to the law to allow locals full access.

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