Dear Editor,
I refer to an April 18 Stabroek News report titled ‘Lumumba netted millions in controversial land deal.’
The report says “Presiden-tial Advisor Odinga Lumumba netted millions in a controversial land deal back in 2008, as official documents for the transaction show he purchased the land from government for $1.5M but later sold it off to an overseas businessman for $38M.”
This transaction raises serious questions in the minds of many Guyanese, myself included. One question is whether Mr Lumumba paid the government capital gains tax on the transaction at issue. The Stabroek News report mentions “conveyance charges” only.
I understand the capital gains tax law requires that a 25 per cent tax be payable to the Guyana Revenue Agency on the difference between the purchase price and the sale price. The difference between $1.5M and $38M is $36.5M and 25 per cent of that amount is in excess of $9M.
Mr Lumumba had acquired the said land in 2004 but, according to Stabroek News, “A source close to the deal said no improvements had been made on the land and also no buildings had been constructed on it between the period September 2004 to March 2008… based on the sale the value of the land grew by 1,500 per cent in four years, an average of 375 per cent per year.”
It is the purchaser Loaknauth Maraj’s business if he agreed to pay $38M for the property. It is the citizens’ business, as well as that of the Guyana Revenue Agency, whether seller Odinga Lumumba paid the full amount due as capital gains tax. As a prominent state official, could Mr Lumumba explain whether he has paid the $9M+ to the government?
Yours faithfully,
Hemraj Muniram
Editor’s note
We are sending a copy of this letter to Mr Odinga Lumumba for any comments he might wish to make.
