Jagdeo should show some gratitude!

Mar 05, 2025 Features / Columnists, Peeping Tom

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Peeping Tom…

Kaieteur News-Have you ever awoken in the middle of the night, sweating, heart racing, because you suddenly realize you may have made a small mistake? Like, say, designing an ownership model for a bridge that is so controversial that it still gives one goose bumps thinking about it? Or perhaps entering into a hotel deal that left your country in hock while mysterious syndicated financiers lurked in the background? No? Well, welcome to the world of Bharrat Jagdeo.

Now, let’s talk about the Berbice River Bridge. Imagine you’re throwing a grand house party. You buy the house, you get the furniture, you even stock the fridge. Then, a bunch of strangers show up, contribute a bag of ice and a bottle of cheap rum, and suddenly they own half the house.

That, dear readers, is essentially how the Berbice Bridge investment model worked. The National Insurance Scheme (NIS) dumped a hefty G$2.5 billion into the project—making it the single largest investor—but somehow, three private companies that put in a fraction of that amount got to sit at the head of the table.

I know what you’re thinking: “That sounds a little suspect.” Well, an economist—who probably had less patience for diplomacy—described it as “outrageous, ruthless, and unconscionable.” Which is economist-speak for, “Are you serious?!”

Meanwhile, the Marriott Hotel was another glittering example of a peculiar kind of financial wizardry. This hotel was heavily financed by NICIL, the state-owned holding company. But it was also built with the help of a syndicated loan from Republic Bank. Who were the investors? Nobody knows! To this day, they remain more elusive than Bigfoot. But one thing was clear—if the hotel flopped, these mystery investors had the first lien on its sale, meaning they got first dibs, while the taxpayers—who were footing most of the bill—would be left standing in the rain. That is if the hotel went bust.

Which is what almost happened had the APNU+AFC government not rescued the hotel. By 2017, Atlantic Hotel Inc. (AHI)—the entity managing the hotel—was in default on its Republic Bank syndicated loan. The bank was preparing to do what banks do best: repossess. But instead, the Coalition government swept in, took the loan off AHI’s books, and absorbed it into Central Government to be paid by the Consolidated Fund. This meant that, instead of Republic Bank running away with our crown jewel, the government was able to hold on to it—albeit at a price.

The loan—standing at a cool US$17.3 million—had to be restructured. The Coalition government managed to extend the repayment period from 13 to 15 years, lower the interest rate from 8.65% to 6.28%, and ultimately save about US$173,261.96. Not exactly a jackpot, but certainly better than losing the whole thing outright.

Now, in a world governed by logic, one would expect some sort of acknowledgment from Mr. Jagdeo. Perhaps a sheepish “Thanks, guys, I really owe you one.” But instead, he now goes around boasting that the hotel is 100% owned by the government. Well, yes, Bharrat, that’s true. But not because of you! That’s like lighting your kitchen on fire, then taking credit when the fire department saves your house.

And let’s not even get started on the bridge tolls. Had APNU+AFC not intervened, those fees would have shot up faster than a toddler on a sugar rush. Imagine waking up one day and realizing it costs less to charter a helicopter than to cross the Berbice Bridge. Thankfully, the APNU+AFC’s government intervention kept the tolls in check, though one can’t help but wonder: How did we even get here?

The truth is, both projects are perfect case studies of flawed financial models. But for Bharrat Jagdeo, they’re symbols of success. The Marriott is now profitable, but only thanks to the fortuitous discovery of oil, which sent business booming. The bridge is still standing, but only because tolls were kept low after the APNU+AFC announced that it was taking over the bridge. Not sure whether it ever legally did so though!

And yet, here we are, listening to Jagdeo brag about these projects like they were textbook examples of economic genius. It’s almost admirable—if it weren’t so utterly absurd.

So, the next time you hear the Vice President waxing poetic about his so-called achievements, just remember: there’s a fine line between a success story and a barely averted catastrophe. And in this case, we all know which side of the line he’s really standing on.

(Jagdeo should show some gratitude!)

(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.)

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• APNU+AFC, Berbice Bridge, Bharrat Jagdeo, National Insurance Scheme, Peeping Tom

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