Latest update November 21st, 2024 1:00 AM
NICIL still to go after New GPC dividends
The National Industrial and Commercial Investments Limited (NICIL) forensic audit report has highlighted that the company never pressed to collect dividends from the 10 percent shares Government has in New Guyana Pharmaceutical Corporation (GPC). Months, going on to a year after that audit has been completed; the new management of NICIL is still to discuss the matter.
NICIL Chairman,
Dr. Maurice Odle
Ninety per cent of the shares in the company belong to Dr. Ranjisinghi ‘Bobby’ Ramroop, who happens to be the best friend of former President Bharrat Jagdeo.
The remaining 10 per cent is owned by Government and is under the management of NICIL.
NICIL’s audit was done by Chartered Accountant, Anand Goolsarran.
Goolsarran stated that: “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 company, 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.”
Chairman of NICIL’s Board of Directors, Dr. Maurice Odle told Kaieteur News that NICIL is yet to discuss the matter moreover look into trying to retrieve dividends.
The APNU+AFC government has been complaining that its predecessor—the People’s Progressive Party/ Civic (PPP/C)—left the public purse almost empty. New GPC is a profitable company. During the reign of the PPP/C government, approximately 80 percent of government contracts for the procurement of drugs used to be handed to New GPC.
Accumulated dividends for government’s 10 percent shares in New GPC may run into the billions.
Yet, NICIL has not placed inquires about the absence of returns for government shares. “It just hasn’t come up in our discussions” is what Dr. Odle Kaieteur News.
He said, “Firms don’t always pay dividends even when huge profits are being made.” Dr. Odle noted the possibility that New GPC may have decided to keep the money to reinvest.
However, that remains a supposition as NICIL is yet to contact New GPC to get an understanding as to why dividends were not being paid.
Dr. Odle said that the matter “might come up during the course of our (NICIL Board) discussions.”
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