The role of the storage bond fiasco

Aug 28, 2016 Letters

Dear Editor,
Having dealt with the bond fiasco, I now turn my attention to BK International /Haagsbosch. This saga, as it is unfolding, has more twist and turns in its plot, than any Hollywood or Bollywood movie I have ever seen. With every passing day a different slant emerges from Government, in a desperate effort to defend and justify the payment of 5.7 million USD to BK International, whom the Government itself accused, of breaching its contractual obligations and doing sub-standard works at the Haagsbosch dump site.
When approval of the first payment was sought in the National Assembly in February 2016, the nation was told that it was monies which were paid in January 2016, towards “an out-of court settlement” in relation to legal proceedings filed by BK for compensation. When Kaieteur News broke the story in March 2016, that the Government is paying this contractor 5.7 million USD as a “settlement”, the Attorney General dispatched a letter threatening to sue the newspaper. His contention then was that the “settlement” was being “negotiated” but not concluded. So at that point in time, the preposterous position of the Government was that they already made a payment in relation to a “settlement” whose terms were still being negotiated.
From March-August 2016, the nation was repeatedly told by several Ministers of Government that this $ 5.7 million USD was paid as an “out of court settlement” in relation to legal proceedings filed by BK seeking compensation from the Government to the tune of 10 million USD. Indeed the government, narcissistically, patted itself on the back for being able to reduce this sum of 10 million USD suit for BK International to 5.7 million USD.
On a hunch, I decided to search for a copy of this mysterious legal proceedings filed by BK. I searched the Supreme Court Registry for the years 2015-2016 but could find no such proceedings. I made this information public. To its credit, Kaieteur News was relentless in its pursuit of the truth in this matter. Finally the camel’s back broke. Minister Bulkan eventually conceded that no such proceedings were ever filed by BK and that the monies were paid based upon a mere letter threatening litigation. Every practicing lawyer in Guyana will tell you that this letter is the most potent and fruitful pre-action letter ever written. It demanded 10 million USD and yielded 5.7 million USD in return. This letter should be framed and hung on the wall of the office of every lawyer in this country.
But the Saga does not end there. Enter a surprising and unscripted character: the Solicitor General. She discloses, but only to the Chronicle, that the PPP agreed to pay off BK! Her tale is that the $5.7 million USD represents payments for the works completed. So in two sentences, she has dismantled all the explanations the Government has proffered over the last 8 months about “out-of court settlement”, “settlement” etc.
For the record, I reject the contention the PPP ever agreed to pay BK International any sum of money as is alleged by the Solicitor General. The gravamen of the contention between the Government and the contractor was precisely the non- payment of monies by the Government because of the sub-standard works by the contractor; hence, the termination of the contract. If the Government had agreed to pay, then the monies would have been paid. There would have been no problem.
The office of the Solicitor’s General is steeped in certain high traditions. The holder of that office never descends into political arena and enters into political debates. The incumbent, has unfortunately, soiled the professional standing of that office. Fortunately I am not surmising but I know that she was instructed to say what was said by a desperate superior who will throw anyone under the bus in pursuit of self-preservation.
Anil Nandlall
Editor’ note; This is the conclusion of a letter we carried in yesterday’s edition

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