The Water Street, George-town property sold to BK International days before the election, had been won through a bid by the company over a decade ago but was subsequently tied up in a court battle and resolved since 2017, the THE National Industrial and Commercial Investments Limited (NICIL) said.
Their claims were backed up by former Privatisation Board member Lincoln Lewis, who told Stabroek News, “What the coalition government has done is complete what the PPP government started – but for whatever reason failed to do, in moving to give legal transfer to the owner.”
On Wednesday, Stabroek News reported that less than a week before the March 2nd elections, Minister of Finance Winston Jordan granted permission for a number of state assets to be sold, including the 2.5 acres of prime land at Mud Lot, Cummingsburg, Georgetown, to BK International, despite government having a caretaker status at the time.
In response, NICIL on Thursday said that it became the owner of Mud Lots 1 and 2, Cummingsburg, George-town via Transport No. 530 of 1947; Lot ‘F’, a portion of Mud Lot 3 three; and Lots ‘A’, ‘B’ and ‘D’ portions of North Cummingsburg, Georgetown through Vesting Order No. 43 of 2003 and 42 of 2003 .
“On December 4, 2006, a lease agreement was entered into between NICIL and BK Inc for a period of 20 years with an option to purchase anytime during the lease period. The purchase price was set at one hundred and ten million Guyana dollars. The option to purchase was contingent on the Lessee obtaining approval from the Mayor and City Council for its intended construction works. This Agreement was signed by former Head of NICIL, Winston Brassington and BK Inc. and witnessed by Marcia Nadir Sharma,” NICIL explained in a press release.
“On November 19, 2009, BK Inc. exercised its option to purchase and ceased paying rent. NICIL rejected the offer to purchase. In June 2013, NICIL began legal proceedings against BK Inc. to recover the outstanding rent and the accrued interest. This matter engaged the attention of the Court from 2013 to 2017. Sometime during 2017, BK Inc. submitted an amended offer. In August 2017, the matter was set down by the court pending settlement. In October 2017, NICIL made a counter offer to BK Inc. that included the original purchase price, all outstanding rent, and 50% of the accrued interest. BK Inc. accepted the counter offer,” it added.
Objection
According to the release, in November 2017, NICIL submitted to Cabinet, a request for approval for transfer by sale but the agency was subsequently informed that an objection was raised by the Ministry of Public Infrastructure, on behalf of Transport and Harbours Department and therefore Cabinet’s approval was deferred.
The release did not address what happened with that objection but stated that “in October 2019, NICIL received approval, following which the Vesting Order was prepared, signed and gazetted.”
Lewis explained that he had at the time served on the Privatization Board when the property was put up for tender, following a fire at the then old rice mill.
BK International’s headquarters are housed on the land and up to Thursday works were forging ahead to build seemed like a waterfront wharf.
However, this newspaper tried reaching out to the company but several calls to both Chief Executive Officer Brian Tiwarie and the office landline went unanswered.
Lewis said that while the deal may seem questionable, the company had won the bid for the property and had been operating on it for over a decade.
Lewis made clear that he did not know Tiwarie at the time and was in no way defending him.
“I was the trade union representative on the Privatization Board – the only black person – when the property in question was put up by the Bharrat Jagdeo government for sale. That property which is located in Water Street was the former Guyana Rice Board, wharf which was burnt down through questionable circumstance during the life of the PPP government. Among the bids for that property was one from BK International. Winston Brassington, [then] Executive Director of NICIL, recommended at the meeting a company the property must be given to. That company proposed by Brassington was registered at Phagoo Store in Regent Street and had no track record with any business,” Lewis said.
“I objected because I looked at the proposal of that company, BK International and others, and found BK’s proposal to be superior, satisfying the many requirements demanded by PPP/C government. In as much as Brassington represented the company registered at Phagoo, the CAGI [Consultative Association of Guyanese Industry] representative and Consumer representative on the Board supported my justification for BK to be given the property. The entire Board, appointed by the PPP/C government, agreed we will recommend to Cabinet the property will go to BK,” he added while stressing that he “never knew Brian Tiwari at the time, but met him subsequently at the funeral of Mr. Lewis, the original owner of Waterchris.”
Lewis said that for many of the state sales under the PPP/C, many were never made final and had been transferred, an act he believed that held the buyer to ransom and placed in a position of never disagreeing with the government.
“What is instructive about the PPP is that that government took time in making sure the final and legal transfer of these properties were never brought to finality. The reason behind this behaviour, is that if for any reason whenever one wants to approach the bank or third party to be involved in any business it will require permission from the government to do so. As such, if the person to whom the property is given should take a position that conflicts with the government the owner will never be able to get the support or comfort to do any business with a bank or third party,” he posited.
Lewis said that he also sat on the Privatization Board when BIDCO House was transferred to Capt Gerry Gouveia, current Chairman of the Private Sector Commission. “This property, which is situated in Duke Street Kingston, he has converted into a business called Duke Lodge. The same principle that applied for BK getting his property applied for Gerry,” he said.
Lewis did not address the issue that the coalition government went through with the sale while in caretaker state and gazetted the order while the results of the elections have not yet been officially declared. It is still unclear why government only addressed the issue mere days before for the national elections.
