City Hall to pursue owners of defunct businesses for debts

Shoppers Paradise on Regent Street, which reportedly owes $34 million in property rates to City Hall.
Shoppers Paradise on Regent Street, which reportedly owes $34 million in property rates to City Hall.

While some of the businesses that owe the Georgetown Mayor and City Council (M&CC) millions in property rates have closed down, City Hall will be going after the owners to collect, according to spokeswoman Debra Lewis.

“The owners are obligated by law to pay… and they should honour that obligation,” Lewis, the M&CC’s Public Relations Officer, told Stabroek News when asked if the council was aware that some of the entities it was pursuing no longer exist. She added that it was “not about operating or not… The council would not clean a part of the drain and skip where the business that is not operating [is].”

According to Lewis, the council will be using its records to contact the owners of the properties.

In December last year, the court granted judgements in favour of the municipality against Jaikaran and Sons, Ashmins Trading Co, CR Jacobs & Sons, Vinelli Industry and Vernon Garraway of Shoppers Paradise.

Jaikaran and Sons of Lot 8 Company Path, South Cummingsburg, owes $76,130,973; Ashmins Trading owes $8,620,273  and $6,989,941 for two properties at 43/47 and 44/48 High Street, Werk-en-Rust; Vinelli Industries of Lot 7 West Ruimveldt Industrial Site, owes $97,765,526; CR Jacobs and Sons, of Lots 15 and 16 Water and Holmes streets, South Cummingsburg, owes $418,420,741, while Vernon Garraway, of Shoppers Paradise, at Lot 104 Regent Street, Lacytown, owes $34,921,153.

Additionally, Lewis informed this publication that the council is currently moving to initiate legal action against another group of businesses and corporations to have them honour their obligations.

These businesses, she said, include Guyana Development Corp of Lot 22 West Ruimveldt Industrial Site; Property Protection Services of Lot 53 Hadfield Street, Stabroek; Wraylite Engineering Company of Lot 1886 Blue Mountain Road, Festival City, North Ruimveldt; and Correia’s Enterprise Ltd of Lot 36 Albouys Street, Albouystown.

However, a visit to the businesses yesterday revealed that some are no longer in operation, while others have been abandoned.

One man in the area indicated that CR Jacobs and Sons closed its doors several years ago.

In the case of Correia’s Enterprise Ltd, the structure no longer stands in the compound and a resident of Albouystown pointed out that it is being used as a recreational ground for residents.

At the Wraylite Engineering Company’s business address, the building appeared to be abandoned; the sign was washed away and the compound had overgrown vegetation.

Efforts were made to contact the principals of Vinelli Industries, Guyana Development Corp and Jaikaran and Sons, which were said to be no longer in operation, but these were unsuccessful.

Meanwhile, when this publication visited Shoppers Paradise and Ashmins Trading, the owners were not present at the stores and senior employees explained that they were not in a position to comment.

At Shoppers Paradise, an employee indicated that the owner of the business is overseas. The employee said the building that houses the variety store is the subject of a court battle for ownership.

When Stabroek News visited Property Protection Services, it was closed and a notice on the door gave the business hours as 8 am to 1 pm, from Monday to Friday.

Lewis, in a press statement issued yesterday, urged all “property owners to be mindful of their obligations to the city and the value of their contributions to the efforts of developing the city.”

The statement added that the failure of corporations and big businesses to pay their rates to the council “is inconsistent with their corporate social responsibility and a contravention of the city by-laws,” and added that their actions have affected “the delivery of vital services such as drainage works, road repairs, and maintenance of parks, gardens and open spaces.”

“The Georgetown City Council needs every cent to continue to sustain the development and transformation of the city,” the statement added.