Squatting at Marriott…Chinese contractor has no evidence that they are owed that much- Minister Patterson

Jan 15, 2017 News

Government has denied it owes up to US$5M ($1B) to the Chinese contractor for Marriott Hotel.

Minister David Patterson

Days after Kaieteur News broke the story that workers of Shanghai Construction Group (SCG) have holed up in an unfinished section of the Kingston hotel, refusing to move over outstanding monies, a top Government was dismissive that the matter was going anywhere.
According to General Secretary of the Alliance For Change (AFC), David Patterson, it is unlikely that the contractor will even take the matter to court and there is no evidence to substantiate the claims.
Several workers, about five or six months ago, took it upon themselves to move from the western section of the Marriott compound, from the temporary facilities that had been built for them, to the unfinished annex.
That annex had been earmarked for a casino and other entertainment features to help boost the revenues of the hotel which opened in early 2015.
Other government officials said last week that Chinese workers had been repeatedly warned to move because of fire safety and other concerns.
Patterson, the Minister of Public Infrastructure, during a press conference of the AFC on Friday, said that he learnt of the Chinese workers taking up unauthorized residence in the Marriott property about two months ago.
“The first thing that came to mind was, wow, look at what these persons (previous Government) left us with…The issue is that the vagaries is in the contract documents that we inherited.”
According to Patterson, the entire construction of US$50M-plus Marriott, engineered by the previous Governments of the People’s Progressive Party/Civic (PPP/C), was “shrouded in secrecy”.

The unfinished entertainment sector of Marriott.

SCG, the contractor, he stressed, is now claiming that there is “this side bar discussion” but there is little paperwork to back up the claims.
The previous board of Atlantic Hotel Inc (AHI), the government company that owns Marriott, has made it clear that it complied with its arrangements with the Chinese company, Patterson said.
The minister said that questions should be directed to the PPP officials on what exactly were the arrangements with SCG.
It was also noted that if the contractor had any basis, he would have used the terms in the contract to go to court already.
“We (the government) can’t simply go around paying monies. You, the press, would maul us.”
The Marriott annex was intended to be converted into a world-class entertainment facility to house a casino and other facilities. The casino was supposed to boost the revenues for the entire facility and allow, based on projections, the hotel to pay the more than US$50M it owes to banks, government and others.
However, almost two years since the hotel was opened, very little has been done to develop the adjacent section.
Last week, Horace James, Officer-in-Charge of the National Industrial and Commercial Investments Limited (NICIL) which owns AHI, confirmed that the workers are in the annex “illegally”.
Responding to a number of emailed questions, the official said that he is aware that SCG is owed and that it is for aboutUS$800,000 ($160M).
”They (the workers) were requested to cease their illegal occupation of the site on several occasions. They also received notice from the Chief Fire Officer that their occupation constitutes a fire hazard,” James wrote in response to questions from Kaieteur News.
A visit to the annex saw at least four persons in the section that would have housed the casino. There are at least four storeys that have been left unfinished. The area outside of the annex is scattered with construction material and overgrown with bushes.
A number of air-conditioned makeshift rooms were converted to bedrooms for the Chinese workers.
The area has electricity and there was even, in one corner, a hot water tank and wash sinks.
There were several construction overalls hanging in a corner next to an open window, overlooking the Atlantic Ocean.
Kaieteur News was told that SCG had been applying pressure for the monies, even visiting the East Coast Demerara office of Ansa McAl where former Chairperson, Beverly Harper, had been stationed, to press home their demands.
Since the April 2015 completion of the hotel, SCG would have been obligated to stick around for a year to correct any defects. That period has long since elapsed, in April 2016.
It was reported that former AHI head, Winston Brassington, had ordered monies withheld because of the quality of work.
A hotel worker has disclosed that a section of a wall at the hotel recently collapsed forcing emergency works. Several of the marble tiles have cracked in places, largely because they are of poor quality.
The hotel was heavily pushed by the successive government of the People’s Progressive Party/Civic (PPP/C) to improve the quality of accommodation in Guyana.
However, the financing structure saw the hotel, in terms of square foot, becoming one of the most expensive in the world.
While the Government of Guyana spent almost US$30M, it is last on the list to receive any returns or profits.
There have been questions to claims by some officials whether the hotel is breaking even.
Government has been hosting a number of events there, but without the casino in operation, officials have been arguing that it will be impossible to pay bills.
Already, Government is in talks with the local banks to hold off collecting outstanding payments.