Bond contract forces Govt. to pay VAT

Aug 27, 2016 News

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– Shady deal proves to be a burden on the nation, should be rescinded – Dr. Anthony
The media has finally received a copy of the Agreement of Tenancy entered into between the Ministry

of Health and firearm dealer, Larry Singh, and the document confirmed that the nation has not been given a quite dandy deal. In fact, the contract involves the payment of “the required Value Added Tax”.
According to shadow Minister of Health, Dr. Frank Anthony, the contact reflects a terrible agreement and should be rescinded forthwith.
The contract commenced from the first day of July 2016 and is supposed to come to an end in June 2019. Government also has an option of an additional three years, with 180 days notice prior to the end of the first rental period.
The contract states, “The tenant shall be given vacant possession of the Demised Premises on the 1st day of July, 2016.” However, in mid-August when the media visited the facility, construction works were ongoing and there were no drugs or medical supplies in sight.
The contract said that government has to pay “Thirty Seven Million and Five Hundred Thousand Guyana Dollars representing two months’ rent in advance together with the equivalent of one month’s rent as a security deposit which shall be refunded at the end of the tenancy lest deductions be made by the Landlord for all or any damages occasioned by the Tenant to the Demised Premises.”
Dr. Anthony said that Health Minister, Dr. George Norton has a right to tell the nation if the government will be refunded the rental fee paid for July when the building was not being used by the Ministry, if the money will roll over to another month or if it just went down the drain.
The contract in this newspaper’s possession also states, “The Tenant (government) shall be responsible for the payment of the required Value Added Tax to the Guyana Revenue Authority.”

Dr. Anthony said that when the approximate $2.5M is considered, the government in actuality will be paying way more than the $12.5M per month that was announced.
The government is responsible for all levels of maintenance of the building and must pay all utility bills.
The contract also makes provision for the landlord, Lawrence Singh, to forcibly enter the facility at any given “emergency”. However, the contract did not define what constitutes an “emergency” for the purpose of the document.
The document states, “In cases of emergency at any time if the tenant is not personally present to open and permit an entry into the building and or upon the tenant unreasonably refusing the landlord entry to the building and or the tenant unreasonably refusing the landlord entry to the building the landlord or his agents may enter the same by any means possible or may forcibly enter the same without the landlord or agents liable for such forcible entry.”
Further, Dr. Norton has said that the entire building was going to be used by the government, but the contract prohibits actions for the government that may be “nuisance or annoyance to the landlord or the tenant or occupier of other parts of the said building.”
The agreement also states that if any additional equipment is added to the facility by the government, it becomes the property of the landlord at the end of the rental period.
“It is agreed and understood that all alterations, decorations, additions and improvements made by the Tenant or made by the Landlord on the Tenant’s behalf shall upon the expiration or earlier determination of the Term become the property of the Landlord without Compensation there for to the Tenant. Such alterations, decorations, additions or improvements made by the Landlord on behalf of the Tenant shall not be removed from the Property or the building either during or at the expiration of the Term or earlier determination of the Term unless approved by Landlord in writing.”
According to the agreement, the Ministry of Public Health has to “use the Demised Premises for the purpose of a professional office.” However, the purpose intended is for the space to be used as a drug storage facility. This was pointed out by Dr. Anthony.
For the $12.5M that the government will be doling out monthly, the landlord has to provide water, electricity, standby generator with over 45kva and auto transfer switch and general maintenance of all appliances and building; provide a walk-in freezer 10.x 8 x10 (800 cubic. ft), 16 stand up refrigerators; provide pallet racks as needed for storage on both levels, provide an Electric fork lift with 4000 lbs. plus with battery and charge and Central air conditioning on both levels and back up of 12 split air condition units with 18000 btu.

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