Show the nation evidence that NEW GPC paid dividends - Forensic Auditor says

Show the nation evidence that NEW GPC paid dividends – Forensic Auditor says

Jul 09, 2016 News

Forensic Auditor, Anand Goolsarran

NICIL Chairman, Dr. Maurice Odle

By Kiana Wilburg
In his forensic audit report on the National Industrial and Commercial Investments Limited (NICIL), Chartered Accountant, Anand Goolsarran noted that Government has not collected any dividends on its 10 percent shares in New GPC.
Goolsarran, on Page 55 of his audit, stated, “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 organization, 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.”
One day after Kaieteur News carried an article highlighting same, NICIL produced a statement contradicting the forensic auditor.
Based on its documents, the controversial entity said that since privatization, NICIL has in fact received $6.9M in dividends for its 10 percent minority shares in New GPC Inc. NICIL said that for 2007 it collected $495, 000.
The entity noted, too, that in 2010, it received $2,665,000. Strangely, for the years 2011 to 2014, NICIL has received the same amount of dividends from New GPC. This, according to NICIL, was some $1.9M.
NICIL acknowledged that it is still owed some amount of money from the company and has since requested New GPC Inc. to pay dividends to the tune of $3.8M for 2013 and 2014.
The entity also agreed that no dividends were received for the periods 2000 to 2006 and 2008 to 2009.
Kaieteur News contacted Goolsarran last evening to ascertain whether he had missed this information during his audit. The auditor made it clear however that this information was never presented to him and as such he believes that NICIL should come forward and produce the evidence of the dividends collected.

This is the chart NICIL sent to KN showing the years for which New GPC paid dividends

Goolsarran said, “I have read the statement from NICIL about dividends received from New GPC. But I must make a few things clear. In response to a questionnaire that I had submitted, NICIL provided me with a schedule of dividends received for the years 2002 to 2014 for all entities in which the Government has shares.
“It is on the basis of that schedule that a table was prepared showing total dividends received amounted to $15.443 billion.”
The Forensic auditor added, “That schedule which was provided to me by NICIL did not reflect any dividends received from New GPC. My working papers files have been handed over to the Police as per instruction from Cabinet, and therefore I am unable to double-check the schedule with the statement provided by NICIL.
“Nevertheless, I note from the statement that NICIL did not receive any dividends from New GPC for the years 2000-2006, 2008 and 2009.”
The Chartered Accountant said that this is consistent with his forensic audit report.
Goolsarran noted that the disagreement, however, is in relation to the years 2007, 2010, 2011 and 2012 where NICIL is now stating that it received dividends totaling $6.968 million.

As regards 2013 and 2014, Goolsarran said that NICIL’s statement is also consistent with his report in that NICIL did not receive any dividends for these years.
“We now learn that the New GPC is indebted to NICIL in the sum of $3.8 million in respect of dividends declared for 2013 and 2014. But this might have been a post-audit event,” Goolsarran added.
Goolsarran said that what is important to note is that NICIL had an opportunity to correct any perceived inaccuracy in his report. He emphasized, too, that the said entity did not dispute his observations on the New GPC when he submitted his draft report for comments.
With the aforementioned in mind, Goolsarran insists that NICIL must provide the evidence to show how it arrived at such a conclusion regarding the payments of dividends.
This publication made contact with NICIL’s Chairman, Dr. Maurice Odle, to ascertain what documents informed NICIL’s conclusion that it was paid dividends and that it was now owed some.
Odle said that while he may have signed the press release sent to this publication refuting the newspaper’s initial article, it does not mean that he was the person who had gathered the financial data to support it.
He said that this was done by NICIL’s financial analysts.
The NICIL Chairman advised that contact be made with that person for further clarity on the matter. But all efforts to make contact with the “financial analyst” proved futile and so did calls to Odle so as to provide assistance with the process.

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