Latest update December 21st, 2024 1:52 AM
GRA not responsible for delays in opening of MovieTowne
GRA Commissioner General, Godfrey Statia
MovieTowne’s main principal, Guyanese-born Derek Chin.
– Statia says investor requested backdated concessions
The Guyana Revenue Authority (GRA) last evening denied being responsible for the delays in the opening of MovieTowne, a US$40M entertainment investment at Turkeyen.
In a statement to the media, GRA’s Commissioner General, Godfrey Statia refuted claims by MovieTowne’s main principal, Guyanese-born Derek Chin. Chin had cited that among the major contributing factors, which prolonged the postponement of the opening, was the equipment and seating were at the wharves for weeks, awaiting “simple” signatures.
According to Statia, this implies that GRA may have been responsible for the tardiness in clearing the equipment. He stated that this is not true.
He stated that MovieTowne’s container arrived at the wharf on October 21, 2017, and without the approval of an Investment Development Agreement (IDA). However, he stated that the GRA facilitated MovieTowne to clear its goods with a Prior to Processing (PTP) arrangement on November 19, 2017.
“The goods were uplifted on November 28, 2017, demonstrating that there were no delays on GRA’s part,” Statia noted.
“While legally guided by the rules of confidentiality, the GRA wishes to set the record straight in this instance. The facts are as follows:”
The GRA boss outlined that construction of MovieTowne commenced in 2011 and by mid-2017, the principal of MovieTowne first met with GRA to discuss the issue of concessions.
At that meeting, Statia said a request was made for concessions to be backdated to the commencement of construction.
Statia stated that GRA advised that concessions cannot be backdated and should have been applied prior to the commencement of construction.
Then, it was discovered that MovieTowne was utilizing equipment, which was part of an investment agreement for a different project.
Statia stated that GRA advised the principal that equipment currently being utilised in the construction of MovieTowne, was in breach of the terms of another IDA, since, based on the said IDA, equipment earmarked for use on another major project was being utilised in the construction of MovieTowne.
“Rather than terminating the IDA, and notwithstanding the breach, the GRA agreed to allow both projects to continue, with the understanding that the available remedies under the said IDA will be enforced subsequent to the completion of both projects,” Statia noted.
According to Statia, MovieTowne submitted an IDA application to Go-Invest, which was copied to the GRA and was advised in September 2017 by the GRA that only concessions similar to those granted to competitors in the industry will be allowed.
Additionally, Statia noted that additional information was needed inclusive of source of financing before a recommendation can be made to the Minister of Finance for approval.
Statia outlined that on December 29, 2017, MovieTowne was granted an IDA consistent with those granted to competitors in the industry, which allow for the waiver of Duty and VAT on certain equipment.
Roy Beepat, the head of the Giftland Mall, located a short distance from the MovieTowne complex has called on authorities to make public the concessions granted to MovieTowne. The two facilities would be competing against each other.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
The GRA is batting out of its crease
Peeping Tom… Kaieteur News- The Guyana Revenue Authority (GRA) has once again demonstrated a perplexing propensity... more
Let the asylum seekers go: a first step for Venezuela to rebuild relations in the Americas
By Sir Ronald Sanders Kaieteur News – The government of Nicolás Maduro in Venezuela has steadfast support from many... more
Weekend Cartoon
