Bharrat Jagdeo and the Russian connection

May 06, 2018 Eye on Guyana with Lincoln Lewis, Features / Columnists

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Revelation that former head of the Privatisation Unit, Winston Brassington and former Minister of Finance, Dr. Ashni Singh were charged for the sale of a plot of land to Oleg Deripaska, head of Russian Aluminum (RUSAL), who for years has been under the international radar for money laundering, is of concern.
The facts as revealed, in the media, inform the property was sold on the advice of then President Bharrat Jagdeo, the land was supposedly to be used to build a vacation home, and was sold below market value. Reportedly Rodrigues Architects valued it at $340 million, it was sold for $150 million, and most disturbingly the sales record indicates only $112 million was paid towards the transaction of sale. It is vexatious.
Many Guyanese having applied for house lots have to wait years before they know whether they can own a piece of this land that belongs to them. Many paid for their lot but it was confiscated because they couldn’t meet the Ministry’s stipulated time frame to build. Where government set a price for a lot if the ordinary man could not pay it, he/she could not have it.
What we’re witnessing in the Deripaska case vis-à-vis the ordinary man is clear double standards, reflecting growing concern that non-Guyanese foreigners are given preferential treatment over resident and overseas-based Guyanese unless among the privileged and politically connected. The association with this Russian oligarch under the PPP/C leadership of Donald Ramotar and moreso Jagdeo is long, deep and incestuous.
The Bauxite Company Guyana Incorporated (BCGI), of which RUSAL has majority shares, has its own sordid history. This operation was originally owned by the Government of Guyana and Reynolds Metal Company (RMC), which established the Aroaima Bauxite Company (ABC) under the Desmond Hoyte administration. This relationship saw the Government putting in the bauxite reserves, and RMC putting the processing plant, mining equipment, and buildings. It was a partnership of equal shares, with RMC having the right to manage.
When RMC was bought by Aluminum Company of America (Alcoa) the 50 percent partnership continued. When Alcoa left, the Government was tasked with the responsibility to continue managing ABC and acquired 100 percent of the shares. A short period after RUSAL came on board, but notably its presence came subsequent to a special visit to Moscow by then President Jagdeo and Minister Robeson Benn.
What came after was the entire ABC operation, together with reserves that were controlled by the Berbice Mining Company (BERMINE), was given to RUSAL, with Government’s share reduced to 10 percent. The BCGI was formed out of this arrangement. This is the relationship that guided the treatment RUSAL metes out us. From day one, it was led to believe Guyanese are privileged to have its presence, and this notion informed its relationship with government, workers, citizens, our institutions and instruments of State.
Issues relating to worker/management relationship saw the then Ministry of Labour turning a blind eye on workers’ grievances with management. There are instances where the ministry, instead of invoking the Labour Laws and examining matters objectively, sought to excuse BCGI management’s behaviour and blame the workers. Management boasted that while workers had the union, the government was in its corner. There was this strong sense government’s tolerance to such violations and transgressions had to be more than what met the eyes. Timid the PPP/C is not.
Thanks to work of the State Asset Recovery Agency (SARA), which led to charges brought against Brassington and Singh, the pieces of the puzzle are coming together, giving society a better understanding of how BCGI has been able to get away with proverbial murder under the PPP/C administration. Laws were trampled, workers’ rights transgressed with impunity, and many suffered through injuries, exposure to unhealthy food and environment, death and sickness. The disregard for Guyanese labour/citizens, our resources and infrastructure, sees no change.
The incestuous relationship between the previous government and premier shareholder of RUSAL, Deripaska, is finding itself out in the open. But let it be cautioned, whereas there is understanding the PPP/C administration was disinclined to enforce the Constitution and Laws of Guyana, it’s fitting to ask why the APNU+AFC Administration is not asserting itself in dealing with BCGI’s violations and transgressions in light of the revelations. The information we now know, Cabinet would have most likely known before.
It must however be noted, a recent visit to the BCGI operations by Ministers Raphael Trotman and Simona Broomes, where the government made clear the Labour Laws must be upheld, proffers hope the sovereignty of this country will be asserted and citizens get their deserving respect and security. Local relationship with RUSAL does not operate in isolation of international concerns and sanctions.
The Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) fight is intensifying globally. Guyana was placed on the Watchlist of the Caribbean Financial Action Task Force (CFATF) for not doing sufficient in our laws and enforcement.
We must question the PPP/C administration’s lacklustre approach in ensuring full compliance with the CFATF, which resulted in the country’s image being tarnished, and businesses and citizens subject to further scrutiny by external forces. Make no mistake, association with characters – be they individuals, businesses or governments- engaged in improprieties, will see sanction.
Presently RUSAL faces sanctions by the United States Government due to questionable activities of Deripaska. According to the U.S government, while it will review the petition to lift sanctions, such is contingent on this oligarch relinquishing control of the company. Government needs to take note and seriously deliberate its association and the consequences for country and citizens.

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