The GRA has slapped businessman Joshua Safeek with eleven charges and one of his subsidiaries Kong Inc. with another eleven charges in relation to a quantity of allegedly uncustomed polar beer it says was imported into Guyana by Safeek’s company.
A portion of the uncustomed polar beverages (73,383) has been seized by the GRA and is currently the subject of High Court proceedings before Justice Jainarayan Singh Jr. The twenty-two charges relate to dealing with uncustomed goods with intent to defraud the Revenue of duties thereon contrary to the Customs Act. Each charge relates to a specific quantity of polar beer and the total quantity amounts to 195,932 cases of Polar beverages. The GRA estimates the alleged evasion of duties and taxes to be in excess of 300 million dollars. The matter comes up in the George-town Magistrate’s Court on Wednesday before Magistrate Mellisa Robertson-Ogle. The GRA’s case is being prosecuted by attorney Gino Peter Persaud.
Kong Inc. is part of the SAFECO group of companies owned by Joshua Safeek. The SAFECO Group also comprises Fidelity Investments Ltd., the National Co-operative Credit Union, Caricom General Insurance formerly GUYFLAG Insurance and the Commodities Store.
On 17th January, 2007 Customs Enforcement swooped on a Bond owned by Fidelity Investments Inc. at 20 Broad and Charles streets, Charlestown and seized some 73,383 cases of Polar beverages it alleged was smuggled into Guyana. The company at the time of seizure was allegedly unable to prove that the goods were lawfully imported by providing duty slips or receipts to show that all taxes and duties were paid. The next morning Fidelity Investments moved to the High Court in an ex parte application saying that Fide-lity Investments was not the importer of the polar beverages but purchased them from a company called Kong Inc. and supplied receipts attempting to prove this. Justice Singh granted an order nisi of prohibition stopping the GRA from instituting any form of action or prosecution against Fidelity Investments Inc. The Judge also granted an order nisi of certiorari directed to the Commissioner General, GRA, to show cause why his decision to seal a bond situated at 20 Broad Street, Charlestown containing beverages under the Polar brand name should not be quashed and an order nisi of Prohibition against GRA to show cause why it should not be prohibited from sealing, seizing or in any way interfering with all beverages under the Polar brand name, property of Fidelity Investments, in that the said decision is unlawful, arbitrary and unreasonable.
The GRA reacted by filing an ex parte motion to have the orders nisi discharged on the ground that Fidelity Invest-ments had obtained the orders nisi by the concealment and suppression of material facts by not informing the Court that Kong Inc. was a sister company of Fidelity Invest-ments and that Safeek was a director and secretary of Kong Inc. and also responsible for incorporating Kong Inc. as a limited liability company. He was therefore ostensibly exercising ownership and control of both companies. The affidavit also said that officers of the GRA had made checks at the Com-panies Registry for records in relation to Kong Inc. but was informed that all records and documentation in relation to Kong Inc. had disappeared.
The GRA was represented at that hearing by attorneys Timothy Jonas and Persaud whilst Fidelity was represented by Hukumchand. After listening to arguments from both sides Justice Singh refused to discharge the orders nisi on the grounds that he did not find the Applicant Company guilty of material non-disclosure of relevant facts and also that Kong Inc. was a separate and independent company with a separate legal personality. In the meantime the substantive high court action has been fixed for arguments on February 21st.
Safeek had been appointed a member of the Customs Tariff Tribunal where he sat from 2004-2006 hearing appeals from importers disputing the rate of duty on imported goods charged by Customs. He was appointed by the then Minister of Finance, Saisnarine Kowlessar who is now currently employed by Safeek as the CEO of the Caricom General Insurance Company formerly GUYFLAG Insu-rance. The Customs Tariff Tribunal is a statutory body responsible for hearing appeals where there is a dispute as to the rate or amount of duties payable on goods imported or exported from Guyana.
