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BK paid $20M for $5B Kingston wharf – AG files court action against BK, Jordan, Heath-London, NICIL to repossess property
Kaieteur News-Attorney General (AG), Anil Nandlall, has initiated legal proceedings against Brian Tiwari of BK Marine Inc. on behalf of the State to reclaim the prime waterfront property, which he paid $20 million for, though the property is worth $5 billion.
That property situated at Mudlots 1 and 2, Lot F of Mudlots 3 and Lots A, B and D, North Cummingsburg was offered for sale to BK by then National Industrial and Commercial Investments Limited (NICIL) Chief Executive Officer (CEO) Horace James for $202,602,759.
Former Finance Minister Winston Jordan
However, BK had only paid $20,260,276, a mere 10% of the purchase price when it was vested to him by the then Minister of Finance, Winston Jordan on March 28, 2020. During that time, the country was embroiled in a heated elections scandal.
Taking this into consideration, the AG is contending that the sale was “illegal, unlawful, null, void, repugnant and contrary to public policy”. He is also claiming that Jordan colluded with NICIL and acted in a negligent manner. Furthermore, the AG contended as well that the Finance Minister at the time had no legal power to act in such a manner.
On the court documents seen by Kaieteur News, BK, Jordan, Colvin Heath-London in his capacity as the then CEO of NICIL, and NICIL, were listed as defendants in the matter.
Notwithstanding the forgoing, there were a slew of other breaches to BK’s contract.
The court documents outlined that BK was initially leasing the property beginning December 4, 2006 for $10 million annually for a 20-year period with the option to purchase it at $110 million later on.
The agreement outlined that the property was meant to be used for the operation of a tourism/ office/ wharf facility for the purposing of developing a state-of-the-art hotel
Former NICIL CEO Colvin Health-London
with restaurants, shopping and office areas, etc.
BK had agreed that within four years after being given the go ahead by the Mayor and Town Council for his construction plans, the scope of works outlined would be completed. Failure to complete this would result in six-month notice of default being issued and if that time elapses, then the agreed upon purchase price would become null and void.
However, BK neglected to comply with the terms of that contract.
The court document stated that BK failed to complete his scope of works outlined resulting in a breach of Clause 1. Added to that, he owed NICIL $34,799,976 in rental payments for the property.
He had written to Winston Brassington, former NICIL head on January 3, 2013 admitting to owing the sum but the figure later racked up to $81,360,158 by February 28, 2017.
BK also failed to make use of the property as per the contract and instead constructed a Ready Mix Concrete Plant. He also failed to execute the approved business plan submitted.
According to the court documents, BK claimed that back in 2009, the failure to execute his business plan was due to “a global financial crisis” and requested an amendment
Brian Tiwari, owner of BK Marine Inc.
that would allow for the Ready Mix Concrete Plant and the construction of other facilities.
Then in 2011, on October 25, a letter to BK stated that NICIL would be willing to transfer the leased property at $110,000,000 plus VAT on a conditional offer. But that Deed of Amendment was never executed and the terms and conditions of the initial contract remained intact. BK failed to comply again, resulting in a High Court battle in 2013 in which NICIL claimed $49,640,202 in rental payments owed.
But the case went nowhere after the 2015 elections.
During his time as NICIL’s CEO, the late Horace James, the document said, “breached his fiduciary duties” and offered to sell the property to BK for $202,602,759 on October 23, 2017, which was a gross undervaluing of the property.
The AG pointed out in the court document that a similar wharf facility now known as the Guyana Shore Base was sold for US$18,000,000. BK made a $20,260,276 down payment for the property on October 24, 2017 and has failed to date to make any other payments.
The Legal Affairs Minister noted that Winston Jordan by way of Vesting Order No 50. of 2020 on March 28, 2020 vested the property to BK “absolutely, free and clear of all claims and liabilities” thereby forfeiting all rights to recover the balance of the purchase price.
Taking these breaches into consideration, the AG is moving to repossess the properties.
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