The Government of Guyana (GoG) yesterday withdrew the Memorandum of Understanding (MoU) it had signed with Natural Globe Guyana Inc for the construction of a recycling plant.
The MoU was signed last Monday, and the Local Government Ministry had said that the firm was selected since it was deemed to be the fittest to carry out the necessary work.
But at a press conference today Cabinet Secretary Dr Roger Luncheon told reporters that after a meeting yesterday, Cabinet decided to scrap the agreement in the light of information revealed by the media.
Subsequent to the signing of the MoU, Stabroek News reported a number of discrepancies surrounding Natural Globe Guyana’s CEO, Mohammed Osman. Among those discrepancies was the fact that his company had only ever built a prototype of the facility he would have been required to build under the MoU, and that he had misrepresented Andriana Webster, daughter of Human Services Minister, Jennifer Webster, as one of the primary investors of the US$30 million project.
Asked why the government did not pick these discrepancies up itself, Luncheon said that the due diligence done ahead of the MoU was not very thorough, since the agreement was not a contract signing.
