Weeks into an ongoing controversy surrounding the outstanding US$5 million owed for the sale of government shares in the Guyana Telephone and Telegraph Company (GTT), the public is yet to be told who has the money.
“No, I can’t say who has the money. I know where it isn’t,” Minister of State Joseph Harmon said in response to a question from the Stabroek News as to who has possession of the money. At the time, Harmon was attending a reception to mark Europe Day, which was held at the National Cultural Centre.
He said that the board of National Industrial and Commercial Investments Limited (NICIL) has the report. “I went there as a representative of the Board of NICIL and they have a full report. So, the Chairman of the Board of NICIL will release that report very soon,” he said in reference to his recent trip to China.
The Ministry of the Presidency, in a statement on April 1, had said that Harmon’s trip was for the purpose of engaging in discussions with regard to the payment of the outstanding balance owed to the government for the purchase of 20% of GTT shares by Chinese company Datang Telecom Technology and Industry Group from NICIL in 2012. This deal was entered into by the PPP/C administration but only US$25 million of the agreed US$30 million was known to have been paid.
Asked if it is known who has the money, Harmon responded, “No I can’t say that. What I do know for sure is that the money hasn’t been paid [to NICIL]. It hasn’t been paid, that’s for sure…so that is as much as I can tell you.”
It was Minister of Natural Resources Raphael Trotman who had disclosed during a post-Cabinet press briefing last month that the money had been collected. He said Harmon had obtained documents which showed that the US$5 million was paid over prior to the APNU+AFC coalition taking office and efforts were underway to track the money. “So, we are trying to track down to whom, how and where,” he had told reporters.
Former president Donald Ramotar has since distanced himself from the controversy, saying that he knew nothing about the money. NICIL has also adopted a similar position and said that nothing had been paid over; rather, it is still to verify a claim of a waiver.
Observers have questioned why the government is taking so long to publicly state who has the money as there must be a paper trail leading to the person/s. It was pointed out too that given the quantum of money, it is hard to imagine that it would be placed in the hands of a person who is not authentic or a representative of the then government.
President David Granger, during a recording of the “Public Interest” last Friday, made it clear that it is Ramotar who has to provide the answers.
“You have to ask Mr Ramotar where the money is,” he said. “I don’t know where it is. I would like to find out but the money went missing under the previous administration and it is certainly missing and that is what Mr Harmon’s mission was all about. We are trying to find out ourselves,” he added.
Ramotar, in a response to what Trotman had said, stated, “The claim by the APNU+AFC government that the money was received is a lie and I challenge the government to present the documents it has received (under suspicious and questionable circumstances) so that the veracity of the evidence can be tested and authenticated.”
He said that the release of this information is suspicious and that the sale of the shares was executed between NICIL and Hong Kong Golden Telecom Limited (HKGT) for the total price of US$30 million.
On April 28, NICIL, in a statement, outlined in detail the agreement that had been made between the NICIL and HKGT. It said that that on November 8, 2012, US$25 million was wired to NICIL’s and the remaining balance of US$5 million became due and payable to NICIL on October 22, 2014.
“Despite several written requests by NICIL, HKGT has still failed to pay the balance of the purchase price,” the release said, while adding that NICIL, in an attempt to bypass the court which would be costly and time-consuming, approached the Guyana government for help in encouraging the payment of the outstanding balance through diplomatic channels.
“To NICIL’s knowledge, neither HKGT nor its related companies have alleged that the balance of US$5 million was paid. What was alleged by the purchaser’s signatory to the agreement was that following a series of communications with the former Guyana Ambassador to China (to be authenticated) HKGT was assured that they were not required to pay the balance of US$5 million, because the HKGT had not been granted the same minority protection rights enjoyed by NICIL (i.e. two, instead of one, representatives on the GT&T Board of Directors) which HKGT alleged were promised to them. HKGT also alleged that the decision to waive the US$5 million was contained in a side agreement,” NICIL said.
HKGT’s claim of waiver is yet to be verified and NICIL has since asked the Guyana government to assist in this regard.
NICIL said that another press release will be issued at the end of the verification process.
