Latest update March 24th, 2026 12:30 AM
NICIL must clean up ‘messy’ GNIC land deal or repossess lands —SARU
The State Assets Recovery Unit (SARU) is far from impressed with the strides made by the National Industrial and Commercial Investments Limited (NICIL) even under new direction. Officials at the Unit said that there remains a lot of “in-house cleaning that needs to be done” especially as it relates to “messy land deals.”
SARU CEO, Aubrey Heath-Retemyer
SARU’s CEO, Aubrey Heath-Retemyer recalled one land deal involving Laparkan which NICIL is yet to address. He stressed that SARU indicated on several occasions that the matter needs to be probed but to date there has been no action on the part of NICIL.
The SARU officer said that Guyana National Industrial Company Inc. (GNIC), a company owned 70 percent by Laparkan and 30 percent by National Engineering Company (Employees Only) has been found to be part of a major corruption racket.
Documents seen by this publication show that National Industrial and Commercial Investments Limited has been aware of the scam but has seemingly condoned it.
The matter dates back to 1995, a period which saw the privatization of Guyana National Engineering Corporation (GNEC). GNIC purchased the moveable assets of GNEC located at the leased lands of Lots 1-12 Lombard Street. GNIC operates the largest wharfing and industrial facilities in Guyana. This facility is involved in ship-building, fabrication of parts and smelting.
On the disbanding of GNEC on May 30, 2002 by vesting order #13 of 2002, NICIL whose Chief Executive Officer (CEO) was Winston Brassington, became the successor of the lease agreement of October 30, 1995 and supplemental deed of lease agreement of January 2002. The term of the lease was for 15 years commencing November 1, 1995.
In 2002, NICIL with the consent of the then PPP government via Cabinet, retroactive to 1995, reduced the annual rent to be paid by GNIC from US$1M to $70M and the sale price of equipment by 30 percent. Despite these concessions, GNIC failed to honour its obligations to pay under the lease and the matter was forwarded to arbitration in July 2009.
Following the award of arbitration on September, 2013, it resulted in an award of $148, 860, 870 in favour of NICIL for the second period 2006 to 2009. But even this was not honoured by GNIC. NICIL, through legal counsel also wrote to GNIC about the enforcement of the judgment but two years later, the company has yet to reply.
Additionally, the term of the lease expired on November 1, 2010 and NICIL became entitled to possession of the property. Documents seen by Kaieteur News indicate that GNIC failed and /or refused to deliver up possession of the property to NICIL. As a result, it remains a trespasser.
Four years later, NICIL commenced proceedings for possession and damages for trespass (that is equivalent of rental amounts from 2010 to date.) But GNIC remains unmoved by this legal action.
More interestingly, while GNIC owes NICIL millions in rent and is currently a trespasser, it has boldly subleased a portion of the land to TCL Cement Guyana Ltd without NICIL’s consent and continues to collect rental from this sublease. GNIC’s actions are also in direct contradiction of the lease agreement which prohibits this.
Kaieteur News understands that the rental collected from the lease is about six to seven times more than the rental that is supposed to be paid to NICIL.
Government has been alerted on the matter and many questions have surfaced including why NICIL has been so nonchalant over the years in ensuring it collects it due payment from the company.
Officials are also baffled why NICIL was aware of the subleasing and never took any legal action against it especially when its “trespassing status” is taken into account. There are also more damning documents which show that NICIL was deliberately dragging its feet on various aspects of this matter.
Additionally, SARU’s head said, “We discussed with NICIL the fact that it has to clean up that mess where the lease is not being adhered to. They turn around and lease part of it the land to someone else and Government is not getting a cent. NICIL has an obligation to clean up that mess or else take it back from Laparkan.”
Heath-Retemyer said that NICIL had a discussion on the matter of repossession and is worried whether it will go into receivership or how it will affect the working staff there.
Be that as it may, SARU insists, “NICIL has a lot of internal cleaning up to do.”
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Sir. Ronald Sanders
The GHK Lall Column
Weekend Cartoon
