High Court dismisses $120M claim against Govt. for rental of controversial Sussex Street drug bond

Mar 02, 2021 News

The Sussex Street Bond facility.

Kaieteur News – The High Court has dismissed the $120M claim which Linden Holdings Inc. (LHI), the holders of the controversial Sussex Street, Charlestown drugs bond contract, had filed against the State allegedly for rents owed.
Back in 2016 the contract between Linden Holdings Inc. and the Ministry came under scrutiny after information surfaced that the $25M bond had been rented under very lucrative terms to (LHI)’s owner Larry Singh, a businessman, during the tenure of former APNU+AFC Minister of Public Health, Dr. George Norton.
It was pointed out that at the cost of $25M, the Government could have built 12 bonds using the $325M it paid to Singh.

Owner of the controversial drug bond, businessman Larry Singh.

The controversy intensified when it was discovered late 2016 that the facility was rented for $12.6M per month and was merely storing items such as lubricants and condoms.
However after paying a huge bill for the rental of the Lot 29 Sussex Street, Georgetown bond, the Ministry wrote to the company on October 31, 2016, terminating the tenancy and notifying the company it was giving up possession of the Bond on the 1st November, 2017.
On 3rd October, 2017, the Ministry again wrote to the company reminding it of the earlier notice of termination and reiterating that it would be giving up possession of the premises on the 31st day of November, 2017.
The company however responded by its then Attorney-at-Law, former Chief Justice, Ian Chang, S.C., informing the Ministry that the company had not received the notice of termination, and did not recognize the Ministry as being lawfully entitled to give up possession of the premises.
The company therefore contended that if the Ministry did give up possession, the company would nevertheless claim the rents payable for the unexpired term of the tenancy.
It was pointed out in Court documents that the Ministry did not actually leave the premises until August, 2018.
After the Ministry gave up possession of the premises, in accordance with its earlier letter from its Attorney, the company filed a lawsuit against the Government and claimed $120M as the total rents which would have been payable for the full term of the tenancy up to 30th June, 2019, or 10 months at $12.6M per month.
In a recent ruling, Justice Nareshwar Harnanan, gave judgment in favour of the Attorney-General and the Central Board of Health and dismissed the claim.
The Judge found that the notice had been properly given, that the tenancy had been validly terminated, and that in the circumstances, the court had no jurisdiction to hear the claim, as at all material times, the Ministry had been a statutory tenant.
As the Ministry was the statutory tenant, the Judge ruled that the claim ought not to have been brought in the High Court, but rather, ought to have been brought in the Magistrates’ Court, which by law, such claims must be decided.
During the trial, the company was represented by Attorneys-at-law, Glenn Hanoman and Joshua Abdool, of Hanoman and Jackson.
The Attorney-General and Central Board of Health were represented by Mr. Andrew M. F. Pollard, S.C., and Mr. Nigel Hawke, Solicitor-General (Ag).

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