NICIL and GNIC continue battle over Lombard St. property

Apr 06, 2017 News

Affidavits in reply have been filed and served in the ongoing court battle between the National Industrial and Commercial Investments Limited (NICIL) and the Guyana National Industrial Company Incorporated (GNIC) over millions of dollars in rent monies owed the Government.
The case stems from an issue dating back to 1995. GNIC, a company owned by Laparkan and the Guyana National Industrial Company (employees), purchased the assets of the former Guyana National Engineering Corporation (GNEC) and leased Lots 1-12 Lombard Street as part of the privatisation of GNEC.
NICIL reduced the rent due from GNIC by 50% in 2000 and the sale price of equipment in 1995 by 30%. Despite these concessions, GNIC failed to honour its obligations to pay under the lease. The matter was forwarded to arbitration in July 2009.
The award of $148,860,870 was made by the Court following the arbitration proceedings between NICIL and GNIC for unpaid rent in 2013. But GNIC had failed to comply with the award.
The Company eventually paid $108 million to the coffers as part of the settlement. The monies were paid in parts, $60 million and then $48 million.
It was reported that the two entities were unable to settle the dispute, and therefore the Court was set to take the matter to trial.
The matter was scheduled for hearing before Commercial Court Judge, Justice Rishi Persaud yesterday.
During a brief hearing, Attorney, Neil Boston S.C, who is on record for GNIC, and Mr Timothy Jonas, the lawyer for NICIL, were informed that arguments into that the matter will commence on May 2, 2017.
GNIC operates the largest wharfing and industrial facilities in Guyana. This facility is involved in shipbuilding, fabrication of parts and smelting.

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