Attorney General and Legal Affairs Minister Anil Nandlall has dismissed a report on Demerera Waves that very “powerful persons” are trying to hijack the name of Wings Aviation as a baseless attempt to “sensationalise a non-issue”.
Nandlall told Guyana Times that the report implies that government  is behind such a move, when in fact the transaction, the names of the people involved, including all stakeholders  can be found in the Company Registry as it is part of public record that can be verified by all.
He said a court challenge by the then Attorney General Doodnauth Singh on the issue was dismissed, and by virtue of this, no “powerful” person or people can wield any influence to steal the name of the company.

Glen Lall

The attorney general, who spoke with one of the principals of Wings Aviation, confirmed that it was not a government official but a citizen of New York who was involved in the court battle.
Meanwhile, the Office of the President has dismissed statements published in the sensational Kaieteur News that it had funded a study on the feasibility of setting up a national airline.
The Kaieteur News had run a number of advertisements on the issue, and had implicated chairman of the Queens Atlantic Group of Companies Dr R Ramroop, among the purported beneficiaries of the project.
“The Office of the President has reacted angrily to the latest in the arsenal of misinformation by Kaieteur News. This most recent effort claims air transport studies being organised, being created by the Office of the President and maligns the effort behind the construction of the new airport facility at the Cheddi Jagan International Airport. This is the level to which the Kaieteur News has fallen.”
According to OP, the administration rejects the claims in its entirety, stating that at no time has the People’s Progressive Party/Civic (PPP/C) administration used public funds to commission a feasibility study in establishing a national airline in Guyana.
“Cabinet has never been approached, and Cabinet has never issued an approval for the use of public funds for such a study. Furthermore, at no time has the PPP/C administration sought to incorporate a national airline, nor to establish such an airline as a national flagship carrier,” the OP statement said.
Equally ridiculous, the Office of the President asserts, is the claim that the expansion at the Cheddi Jagan International Airport was an effort to obtain a new category ranking from the FAA in the U.S.
“The records would show that CJIA had that original category, lost that category because of human capacity constraints, and it was not any reconstruction or rehabilitation of the airport that is needed to restore the lost category. The administration is calling on the accusers, Kaieteur News, to produce the evidence, to make public the documents they claim that show that this administration was involved in their ridiculous claims.”
Reports received by Guyana Times from a credible source at the Kaieteur News, claim the newspaper did not receive any payment for the ads, as they were the work of the newspaper’s owner, Glenn Lall.
The source, justified the claim by stating that Lall did not want the issue to die, and as such, he followed up the ads with a story he instructed a reporter to write in his malicious attempt to keep the concocted issue alive and to editorialise on the issue.
Lall has been using his paper to smear the character of persons he does not like, as a means to improve the sales of the newspaper. From all indications, the fabrication of the ads is yet another manifestation of his open, shameless, and downright dishonesty.

As investigations continue into the stabbing to death of 17-year-old Shane George of 144 Jasmine Lane, Roxanne Burnham Garden, new information received suggested that the knife that was used to kill the teenager was intended for another child.
Guyana Times understands that the suspect, Akeem Roberts and another teenager of the Morgan Learning Centre at John Street and Stone Avenue, Campbellville, had an altercation prior to the incident.

Dead teenager: Shane George

Further reports gathered revealed that Roberts took the knife to the school with the intention of injuring the teenager, if he had continued to trouble him.
According to the grandmother of the dead teenager, George was sitting in class when the act was committed. She explained that from reports she received, children in the class were making jokes about brand name sneakers, and because George laughed, Roberts got upset, walked over to him, and stabbed him several times.
The grandmother in tears told media operatives that her grandson never had problems with anyone, and described him as a fun child to be around. “He would make the weirdest jokes which kept people lively,” she added.
The woman said had she knew Shane was having issues with his classmates at the lessons; she would have transferred him to another educational facility.
Attempts to get a comment from the owner of the Morgan Learning Centre proved futile, but classes continue as per normal.
The suspect, Akeem Roberts is still in police custody, and is expected to be charged today. A police source disclosed that they are awaiting the results of the post-mortem examination before charges are instituted. He said that while the suspect showed some remorse for committing the act, he remains quiet.
George was stabbed to death during an argument over brand name clothing. The stabbing incident occurred about 16:30h on Wednesday at the Morgan Learning Centre. George reportedly died on the spot; nevertheless, he was taken to the Georgetown Public Hospital where doctors confirmed him dead.
Roberts was taken into custody at the Kitty Police Station almost immediately. The murder weapon was also taken into police possession.
From reports gathered, Roberts was a victim of verbal abuse by the now dead teenager, who continuously taunted him about the clothes he wears to attend the lessons.
As a result of the continuous abuse, fellow students presumed that the act was a premeditated one, since Roberts was not known to carry any weapon to school.

The persistent adverse state of the world economy remains a matter of global concern, and demands that the United Nations address itself to these challenges, President Donald Ramotar told a high-level United Nations forum on Thursday.
Ramotar spoke on behalf of the Caribbean Community at the forum, which dealt with the state of the world’s economy. He said invested with the hopes of the world’s citizens and with the mandate of its charter, the UN has an obligation to ensure that the global response to these challenges is inclusive, effective, and sustained.

President Donald Ramotar

According to the Guyanese head of state, three years ago, leaders met in New York for the Conference on the World Financial and Economic Crisis and its impact on development. “Today, the outworking of that crisis is still a work in progress; the danger of significant reversals is ever present. The IMF has pointed out that after three years of effort at stimulating recovery, the world economy is still fragile and the medium-term prospects are bleak,” Ramotar said.
Indeed, talk of recovery can at best be described as premature. Even if there are some signs of renewed growth, this growth can hardly be regarded as deeply entrenched and is still extremely uneven. Several of the major contributors to global output continue to place a drag on global growth, and are themselves grappling with unsustainable fiscal balances, which hinder their ability to implement adequately the measures needed to stimulate a lasting recovery.
Ramotar said the challenges in the eurozone, faltering growth in the U.S. economy, and a slowdown in growth in major emerging economies are indicative of the fundamental problems that still exist at the global level.
“Having met in 2009 to fashion an inclusive global response, tangible results continue to elude us. The inherent fragilities that facilitated the global financial and economic crises have not been adequately addressed; developing countries have borne and continue to bear a high cost for a crisis not of their own making and the current state of the global economy suggests significant vulnerabilities that make a recurrence a continuing risk.  The current debate can therefore only be a prelude to more deliberate and concerted action by the UN in follow-up to the undertakings of the 2009 conference.”

Impacts of crisis
The president said from the standpoint of developing countries, this entails addressing the fundamental impacts of the crisis on their development prospects, and on achievement of internationally-agreed development goals, including the Millennium Development Goals (MDGs).
He said progress towards the MDGs was already slow prior to the crisis, and will inevitably be further slowed as a result of the crisis and a combination of other concurrent challenges.
“Increased poverty and hunger has ensued: over one billion people now face hunger on a daily basis; and poverty eradication gains have been eroded. The rise again in food prices, unless contained, could further aggravate the poverty challenge and have a devastating impact on poorer economies.”
Ramotar told the forum that although more resilient than in earlier times, developing countries have borne the brunt of the present crisis, as reflected in growth that is generally lower than pre-crisis levels. Already wrestling with harmful trading arrangements, and the consequences of an inconclusive Doha Development Round, the circumstances of these countries have now been aggravated by the crisis. The adverse effects have included cuts to social programmes, reductions in the flow of ODA and Foreign Direct Investment (FDI), on international trade volumes and the level of indebtedness of developing countries; and a major loss of jobs. Some 200 million people, including more than 75 million young people, are reported to be out of work.
Ramotar said Caricom reality reflects a number of these pathologies.
He said Caricom economies have been significantly impacted. The president added: “Just as the Caribbean made no contribution to the financial crisis but faces major economic devastation as a result, in the same way, our countries face potential decimation by a climate crisis caused by others.  Rio+20 will be an important opportunity for forging a comprehensive response to the challenges of sustainable development, and I hope we will grasp that opportunity.”

BY MICHAEL YOUNGE

“Put up or shut up” is the  advice National Industrial and Commercial Investment Limited (NICIL) Executive Director Winston Brassington has offered to A Partnership for National Unity (APNU) shadow finance minister Carl Greenidge and Alliance For Change (AFC) parliamentarian Khemraj Ramjattan.

Winston Brassington

Brassington speaking with media operatives at his office in Kingston on Thursday afternoon said so far the opposition has failed to bring any evidence to the claims they make against him, NICIL or the Privatisation Unit, as they continue to engage in wild public chatter.
“I value my integrity and that is why I get upset when people impugn my integrity without putting any substance to their allegations… my honesty is important to me… I can account for every cent that passed through NICIL,” he submitted.
A seemingly frustrated Brassington said he thought many times about suing the Kaieteur News and  Ramjattan for their headlines and baseless accusations, but when he considers the lack of a record of cases of libel and defamation of character where persons have seen justice, he realises it may be futile.
“They are the criminals when they make these statements and do not back it up. I am going to wage a battle with them because I will no longer sit idly by and allow them to impugn my integrity after 17 years of service,” he asserted.

Prepared for Parliament
Asked whether he was prepared to face the Economic Services Sector Committee of Parliament to answer questions or be “interrogated” by parliamentarians, Brassington responded in the affirmative. He did state that he “would have to of course be guided” about the mandate of the committee and what would be required of him essentially.
“I have no problems going before any committee,” he declared, admitting that he was aware that he would be the one ultimately answering questions because it would be improper for him to challenge the information presented to him by the parliamentarians by asking them questions about their sources or the rationale behind the questions posed to him.
He said he just wanted to make sure that the process is fair and transparent and that he is not going there to be part of some “contrived” situation. Questioned by the Guyana Times as to whether he is prepared to resign his post immediately if financial improprieties are discovered, Brassington said:  “Absolutely because I am very confident that everything I have done are within the confines of the rules and processes.” He noted Ramjattan’s unwillingness to be part of a public debate or face to face interview with respect to the allegations that he has made against both NICIL and his integrity. “Let him put to me five questions on things that he is concerned about”, he proposed “I will respond to these.”

Jagdeo not involved
Meanwhile, the NICIL head has dispelled allegations that former President Bharrat Jagdeo is still involved in the Privatisation Unit and the affairs of NICIL. In fact, he said that since Jagdeo demitted office back in 2011, he has not had any dealings with the two entities.
“He has not been involved with any of the boards now or before other than when he was the minister of finance,” he explained, noting that Jagdeo did have oversight responsiblility for Cabinet, which ultimately gives the approval for some of the projects and ventures of NICIL and the Privatisation Unit, based upon the recommendations of the boards.  “Of course most matters end up at Cabinet… everything we do we have a Cabinet decision,” he said, stating that the privatisation policy framework paper is stringently followed. Several persons form part of the oversight process and are directors on the board apart from Jagdeo when he served as finance minister.

NICIL audits
He has also announced on Thursday that Guyanese can look forward to the tabling of the consolidated accounts and audits of NICIL, along with its subsidiaries by July month-end, the latest in Parliament.  He expects the audits to be finished by June, allowing the accounts to be laid in Parliament in July.
NICIL’s audited accounts have been completed up to 2010 and the auditor general is now working on the 2011 set of accounts, but the opposition was concerned the consolidated accounts for the group have not been tabled since 2004.
“We are actually working with the AG to get this done as quickly as possible,” he emphasised, mentioning shortly after that “the pace has picked up tremendously… and I believe that by the end of June or very shortly thereafter, we should be in a position to put most of these before the Parliament.”  “It’s just a matter of time”, he stressed, arguing that the entity was considering putting NICIL too into the public eye.

Jumbie arithmetic
Brassington has also shown proof that NICIL was registered during the tenure of the Former Finance Minister Carl Greenidge as a Private Limited Company under the 1989 companies Act. The company was registered in July 1990.  He has also showed the clauses in the company’s registration which state clearly that the decision to pay dividends, and by what amount resides solely with the company’s directors, while noting that the shareholders could argue that the amount paid as dividends be lesser, but not more than what was initially proposed.  As such, the discretion to pay dividends is with the board of directors, and this is one of the articles from the July 1990 documents.
He acknowledged that NICIL is a government entity owned solely by government. He said that Greenidge and others may have confused their facts because he is aware that while the Constitution does mandate that monies be paid into the Consolidated Fund by state agencies, the very Constitution, which he did not have at the time, also states that “except where governed by another act”. This, he reasons refers to the Companies Act under which NICIL is registered.

Paying funds into the Consolidated Fund
It is now public record that both NICIL and the Privatisation Unity have paid more than $20 billion in dividends or privatisation transfers into the treasury.
“If you put it in, you will need appropriations to take it out, which means parliamentary approval,” Brassington offered carefully, while explaining that with the recent trend where the opposition parliamentarians are excited about using their “tyrannical scissors”, one can draw many conclusions as to the rationale behind their pleas.
He said that “If they did it there, they could do it here”, after referring extensively to the position the opposition took on several developmental projects which they said they supported, but still axed from the 2012 budget.
“So any developmental project they would cut if they don’t like it”, he opined, but not before outlining that the multimillion Marriott Hotel Project and Berbice River Project fall under the ambit of investments made by the agency, and the position of the opposition on these two are very clear.
“Do we say when you sell a tonne of sugar, a Kw of electricity or a pint of kerosene oil: put in the consolidated Fund,” he quizzed as he referred to other government bodies which are operating as companies for example GuySuCo, the Guyana Power and Light Company and the Guyoil
“No we ask for accountability and that it is reflected in their books,” he noted. “All of our accounts are audited by the auditor general,” he declared.

Liquidation of NICIL
“I don’t understand what is driving the arguments”, he confessed when asked about a threat to liquidate NICIL as a last resort to bring the company to book as suggested by the opposition.
Brassington noted that NICIL is a company that owns over a dozen other state entities. “What are they proposing that NICIL shut down all the companies, sell out its interests and shares and send home thousands of staff”.
“Are they proposing outright privatisation of all of these entities,” he further quizzed. He said that there was no rationale in the argument for such a move because NICIL and its subsidiaries, except in the case of NCN and the electricity firm, have not made a call on the treasury, but has paid billions of dollars into the coffers, billions in taxes, created employment and supported considerable investments and private sector development.
He argued that privatisation was not solely about money but about creating development and jobs.
“NICIL has been at the forefront of making loss-making state-owned companies financially sustainable, competitive while they contribute to the development of the country, they make investments, pay taxes, employ thousands,” he reasoned, arguing that “at the same time shielding the treasury from financial claims and liabilities”.

By Ariana Gordon

Natural Resources and Environment Minister Robert Persaud said the legal department of the Guyana Geology and Mines Commission would be revisiting the mining regulations, with a view to having some of them repealed in light of changes that have occurred over the years.
Persaud made this announcement at a meeting of non-national miners on Wednesday at Celina’s Restaurant Kitty Sea Wall following questions posed about the contradiction of some regulations. The minister was asked whether a Brazilian who owns a dredge and other mining equipment has to obtain a work permit before he could have the dredge registered, noting the general rule that Brazilians must be sponsored by Guyanese in order to obtain work permits. Persaud in response to the question posed by the miner admitted that there is indeed some contradiction in the regulations governing non-nationals and as such, efforts would be made to have those inconsistencies ironed out.
“You are correct, there is a bit of contradiction and the legal department has been instructed to ensure that with this new dispensation and the changes we are bringing about, we will tidy up this arrangement. The legal department will go to work on that and give ourselves two weeks, we will do it in Portuguese, Spanish, and whatever language… these conditions would be made available.”
Persaud said, “From time to time, different things were introduced, and sometimes a new position contradicts an old one because we did not repeal the old one and this is what an element of confusion is.” Meanwhile, GGMC Legal Officer Kara Duff said those miners who have work permits for one location and wish to relocate would have to apply all over again as the permits issued are “restricted to one sponsor”. “So when you would have obtained that work permit and you worked with that sponsor and you are now seeking to move on to another sponsor, which may be located in another district, then you would have to reapply for another permit,” she stated.
Duff explained that there are several reasons responsible for the GGMC’s move to limit non-national miners. “If you are seeking to work on a claim, then that claim must have been verified, so you would not be allowed to obtain a work permit to work on a claim that is unverified and for which a claim licence has not been issued. That is one factor a commission would have to consider whether to process your application for a work permit.”
Additionally, she said that a sponsor who owns a dredge or specified machinery is only permitted to sponsor a maximum of four non-nationals. “So you may be moving on to another sponsor who has already sponsored four non-nationals on that specific dredge and machinery. Therefore, you would not be allowed to work on that specific dredge with that sponsor.”
Moreover, the legal officer stated that a non-national miner who wishes to move to another district and is seeking to work with someone who has a licence to trade must be made aware of the fact that miners with licences to trade can only sponsor one non-national.  “…then you would not be allowed to work with that person on that dredge,” if another non-national is already working there.
“There are other critical factors the commission has to take into consideration: if you have two dredges on a mining permit or a claim for which a claim licence has been issued then those dredges would have to be 150 feet apart. There are a lot of factors that we have to consider here at the commission you can’t just have a work permit and quickly move on to another area because you may find yourself in breach.”

No short cut
Meanwhile, GGMC Chairman Major General retired Joe Singh said there is “no short cut” to the regulations laid out by the GGMC. He said: “People have been trying to short circuit to avoid having delays in Georgetown while waiting, whether on work permits or certificates of registration. There is no short cut, you don’t have to go paying anyone for anything, but you have to wait until the protocols and procedures are applied.”
He said all protocols must be followed or defaulters will face the consequences. Given the growing demand for minerals, in particular gold, on the global market, Singh said there is need to ensure that Guyana’s resources are managed properly. This, he said, is not novel as other countries are safeguarding their resources. The GGMC chairman said non-nationals need to respect Guyana, its people, the resources, and the environment.
“We have to ensure that we have respect for the environment, for the people who live downstream from our operations, we have to respect the fact that in addition to human beings there are biodiversity – animals, plants etcetera which also are important for human life. Therefore it is not just about digging holes in the ground and extracting minerals that there is accountability, there are production records, that says who is working where, because there is an occupational health and safety aspect, so we are concerned about the survival and health of the individual miner as we are for the environment, rivers, tributaries, for the trees and the plants and the animals that inhabit the forests.” Singh said, “these steps may seem very bureaucratic” but are necessary.

Price fixing: a common strategic barrier to entry
While the above list may allude to the concept of price fixing, it is necessary to explain the ins and outs of this grave offence. Price fixing is any arrangement, whether explicit or implicit, between or among producers and/or sellers to set or influence upward the price of a product or service. Price fixing can dissuade potential businesses from entering a market by, for example, planting false notions about input prices. The concept extends to any form of discrimination against other enterprises that may not be in alliance; for instance, it is unlawful for an enterprise to refuse to supply goods or services to another enterprise if the other enterprise declines to be, or is not, a party to an agreement to fix prices in a market.
Bid-rigging is another form of price fixing where two or more enterprises appoint contractors without giving fair consideration to the submissions of requests for bids or proposals. In this way, potential entrants are locked out of opportunities from the inception.
The line between the structural and strategic barriers to entry becomes blurred when firms use the existence of structural barriers to their strategic advantage. Regulatory barriers, for example, could be considered either structural or strategic depending on whether existing firms played a role in persuading the government to create them. Similarly, sunk costs (large investments that cannot be recouped easily) are typically structural but could be considered strategic if existing firms are responsible for creating or enhancing them, such as by integrating vertically (ie being wholly involved in as many steps as possible in the production and distribution process) and thereby forcing potential entrants to do the same thing.
Although some barriers to entry are erected in the best interest of consumers, the existence of barriers invariably deters business development or leads to the closing of businesses owing to their inability to overcome an inequitable business climate, which in turn, also affects consumers. Next week’s article will focus on the positive albeit limited side of barriers to entry for business in Guyana. For more information, please call the CCAC at 219-3926 or 219-2800.

Finance Minister Dr Ashni Singh

He pointed out that the magnitude of these challenges and the elusiveness of lasting solutions are multiplied many fold in the case of small vulnerable economies such as in the Caribbean. He reiterated that the region has some of the world’s most severely indebted nations, rendering fiscal space for counter-cyclicality nonexistent. This situation is further exacerbated by the natural and structural impediments to productive sector diversification, and the close link between the region’s current dominant productive sectors and the fortunes of large neighbouring economies, as reflected in Caribbean tourism’s close dependence on North American disposable incomes.
As a result, opportunities for growing the economy out of fiscal stress are extremely limited. The minister also pointed out that imported price volatility, for key commodities such as oil and food, place stress on external balances and undermine the predictability of investment flows. Against this background, Minister Singh stated that the United Nations had an important role to play in analysing the challenges faced by small vulnerable economies and, more so, in helping to craft viable solutions.
He suggested that such efforts can manifest themselves in the definition of a new development model or paradigm that takes into account the realities and challenges of smallness, the definition of trade and other multilateral arrangements which recognise the implications of smallness, and the development of instruments to be applied by the international financial institutions to help small vulnerable economies return to debt sustainability. He urged the United Nations to avoid the peril of focusing solely on large countries of systemic economic importance, to the exclusion of small vulnerable countries and economies. Along with Minister Singh, the round table was co-chaired by Morocco Finance Minister Nizar Baraka, and Indian Planning Commission Deputy Chairman Dr Montek Singh Ahluwalia.
Amongst the panellists at the round table were Columbia University Professor Jeffrey Sachs; UNCTAD Secretary General Dr Supachai Panitchpakdi; and retired U.S. Senator Alan Simpson, who co-chaired in 2010 the U.S. National Commission on Fiscal Responsibility.
Minister Ashni Singh is currently attending the UN High level debate as a member of the Guyana delegation led by President Donald Ramotar, who addressed the plenary session of the debate earlier Thursday morning.