…transaction for Kingston property acquisition started under PPP
By Lisa Hamilton
KNOWN critics of the government have been called out for seeking to create controversy, where none such exists, in the recent transfer of property by the Government to BK Marine Inc., owned by Brian Tiwari.
An Order gazetted on March 28, 2020, made its rounds on Facebook, and, later, in the media where the government was accused of selling prime waterfront property to BK, on February 26, just days before the March 2, General and Regional Elections. The Order was signed by Finance Minister Winston Jordan and saw the title of the immovable property of National Industrial and Commercial Investments Limited (NICIL) which amounts to 2.553 acres of land being transferred to BK Marine Inc.
The land includes: Mudlots 1 and 2, Cummingsburg, Georgetown; Lot ‘F’, a portion of Mudlot 3; and Lots ‘A’, ‘B’ and ‘D’ portions of North Cummingsburg, Georgetown.
The likes of Attorney-at-Law, Christopher Ram, called for an investigation to be launched into same and the Order was shared by a People’s Progressive Party/Civic (PPP/C) Facebook page alleging illegality on the government’s part.
BY THE BOOKS
In a release on Thursday, NICIL denied involvement in any shady deal and labelled reports suggesting otherwise as “absurd and crass”. The release stated that the properties were vested to NICIL via Order No. 43 of 2003 and 42 of 2003. On December 4, 2006, a lease was entered between NICIL and BK International Company Inc. for 20 years, with an option to purchase the property for $110,000,000.
The option to purchase was dependent on the Lessee obtaining approval from the Mayor and City Council for its intended construction works. NICIL said that this agreement was signed by former Head of NICIL, Winston Brassington and BK Inc. and witnessed by Marcia Nadir Sharma.
On November 19, 2009, BK Inc. exercised its option to purchase and ceased paying rent but NICIL rejected the offer to purchase. Years later, in June 2013, a legal action was instituted against BK International Company Inc. for rental arrears and accrued interest. The matter engaged the attention of the Court from 2013 to 2017 and sometime during 2017, BK Inc submitted an amended offer.
In August 2017, the matter was set down by the court pending settlement, and, in October 2017, NICIL made a counter offer to BK Inc. that included the original purchase price, all outstanding rent, and 50 per cent of the accrued interest. BK Inc. accepted the counter offer.
Then, in November 2017, NICIL submitted to Cabinet, a request for approval for transfer by sale. However, NICIL was informed that an objection was raised by the Ministry of Public Infrastructure on behalf of Transport and Harbours Department and, as a result, Cabinet’s approval was deferred.
In October 2019, NICIL received approval, following which the Vesting Order was prepared, signed and gazetted. Speaking briefly on the matter on Thursday, Minister Jordan confirmed that said matter was before Cabinet over two years ago and Tiwari is under the agreement of a lease which gives him the right to exercise a purchase should he so desire.
“He has the lease and the lease gives him the option to purchase and he tried to exercise his options and we had been investigating that,” Jordan said. The minister believes that no matter the time that the transfer was made, whether before or after the elections, the Opposition would have made it its duty to raise contention. However, he made it clear that Tiwari did not receive any favours from the government as the said agreement began under the PPP/C and represents a fair transaction.
I WAITED FOR YEARS
Contacted on the matter, Tiwari, on Thursday, told the Guyana Chronicle that BK has been pursuing the transfer for over 12 years. “This thing wasn’t done with this government. This thing was done since in the days of the PPP. It was a tender and the tender clearly says what you had to do and we complied with whatever we had to do and we were waiting all the time for the transfer; that’s all,” he said.
He said the agreement involved was a Rental-Purchase Agreement for which three persons submitted tenders — inclusive of late realtor, Tony Reid. However, Reid died and the other person could not come up with the money so he won the tender and entered into the agreement on December 4, 2006. The agreement was signed between Tiwari and former Executive Director of NICIL, Winston Brassington. It detailed the requirements needed to be met before one became eligible to purchase the property.
Tiwari said these requirements were fulfilled but the agreement also mandated that a letter from a bank proving that one had the finances to purchase the property and that was provided. However, Tiwari was denied the purchase and possession of the property, took the matter to court and was ordered to pay the sum of $22M to be eligible for the purchase. Even though these payments were made, Tiwari said he was still denied ownership of the property. In 2017, a further agreement was signed with NICIL for the purchase of the property.
He said, even so, he had to wait years to see the realization of the transfer. Asked what he believed was the reason behind that, he stated: “That’s how the PPP operates. If they want to keep you behind the bars, they put you behind the bars; that’s how the PPP do it. You either be with them or you’re not for them.”
Recounting the years, he said that himself, Former Private Sector Commission (PSC) President, Edward Boyer, and businessman and close friend of Jagdeo, Bobby Ramroop had applied to the government for land but he was the only one who faced challenges. “The PPP hold this thing back from me,” he said. “The two got their transport and they shocked me out. I didn’t get but the two get; Bobby Ramroop and Eddie Boyer.”
INTENTIONAL DELAYS
Adding this position to the matter was former Trade Union Representative to the then Privatisation Board (PB), Lincoln Lewis.
In a public statement Lewis said he was in representation at the time of the bids for the property and what the government has done is merely complete a transaction intentionally stalled by the PPP government.
He said that Brassington had recommended at the meeting that a company registered at Phagoo Store in Regent Street, which had no track record with any business, be given the property in question. Lewis objected on the grounds that BK’s proposal was superior and satisfied the requirements demanded by PPP/C government. The entire PPP/C-appointed Board eventually agreed with the Trade Unionist who hadn’t known Tiwari at the time.
“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,” Lincoln said.
He added: “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.”
Source: https://issuu.com/guyanachroniclee-paper/docs/guyana_chronicle-epaper_04_03_2020