Former ministers of the PPP/C government who accessed property in the controversial Pradoville 2 scheme should be liable for misconduct in office, according to a document forwarded by the State Assets Recovery Unit (SARU) to Attorney General Basil Williams.
Contacted last night by Stabroek News, the Attorney General confirmed that he was in receipt of the SARU document and it was being studied.
The ex ministers who benefited from land in the scheme are former Natural Resources Minister Robert Persaud, former Education Minister Priya Manickchand, former Home Affairs Minister Clement Rohee, former Labour Minister Dr Nanda Gopaul and former Public Service Minister Jennifer Westford. The document says nothing about any action against former President Bharrat Jagdeo as he would be covered by presidential immunity.
APNU+AFC upon entering office had vowed to pursue the recovery of state assets that it felt were improperly taken and SARU headed by Dr Clive Thomas was established.
The document seen by Stabroek News traces the origins of the Goedver-wagting Scheme on the East Coast of Demerara and the transactions of the various ministers some of whom no longer own the properties.
The document noted that in 2010 a decision was made by the Cabinet authorizing state holding company NICIL to privatize State Lands. This decision was made without any authorization and approval bodies from the relevant bodies, the document charged.
“The lands were sold to the former ministers and known friends and associates of the previous regime. At the time of the sale the lands were grossly undervalued and sold substantially lower than the market value for the land thereby depriving the state of its full benefits.
“The actions of the former cabinet Ministers have shown that they have wilfully neglected to perform their duties without reasonable excuse or justification to such an extent that it amounted to an abuse of the public trust in the office holders”, the document charged.
In the past, Persaud, Manickchand and other ministers have declined to speak to the media about the Pradoville 2 deals.
The document said that Tract A of Sparendam was once deemed as Com-munal Lands and was thereafter owned by Demerara Sugar Estates before Independence.
After Independence this plot of Land was owned by the State and remained state land until 2010 when the Central Housing and Planning Authority (CH&PA) privatized the land and the plots were sold to the former ministers and associates of the former regime.
The land prior to being sold in 2010 was under the direct control of GBC and GTV which later merged into NCN an entity which was owned by NICIL.
In 2007 NICIL was asked to facilitate the Ogle Airport Expansion programme, which indicated that the tower on the land was interfering with the flight signals and on those grounds the tower was relocated.
The document said that investigations revealed that a decision was taken by Cabinet in 2010 for the land to be privatized. Feasibility studies were conducted at the behest of cabinet and NICIL spent large sums of monies in developing the area.
The document said that the lands were transferred with the following conditions:-
(a) The building shall be erected on the lots within (6) months of the signing of the transfer.
(b) Upon failure by the transferees to erect the building with the aforesaid six months the transferee shall be bound to re convey the said to the CHPA at the same price it was sold…subject to the transferee being reimbursed with a reasonable sum for any development works undertaken during such period.
(c) The transferee shall not be at liberty to sell, lease, transfer or part with possession of the said property within ten years of transfer without the written consent of the minister responsible for Housing.
The document said that Manickchand sold her land to Dave Naraine for $100m on the 21st of February, 2013, three years after the purchase of the said land, without any written permission from the CHPA thereby being in breach of Clause C of the conditions attached by CHPA.
It added that Persaud’s land was transferred into the names of relatives. On the 18th September, 2014 the said land was sold to LSR Company for ninety million dollars without any written permission from CHPA thereby being in breach of Clause C.
The document further said that the Overseer of the Industry/Plaisance NDC has indicated that no rates and taxes have been paid since occupancy of the land.
After a legal analysis of misconduct in public office, the document said that investigations have revealed that the land was intentionally grossly undervalued at the time of transfer to benefit the cabinet members and their associates who are all public officers.
It charged that the actions of the former cabinet Ministers point to wilful neglect to perform their duties without reasonable excuse or justification to such an extent that it amounted to an abuse of the public trust in the office holders.
The lands were sold for $114 per square foot at the time, the document said.
“Public officers ought to carry out their duties not for the benefit of themselves but for the benefit of the public as a whole. If they neglect or misconduct themselves by their actions in the course of their duties this may lead to a breach or abuse of the public’s trust. The act of the cabinet members for their benefit is serious enough to amount to an abuse of the public’s trust”, the document said prior to recommending action.
It stated that having regard to the decision in the Caribbean Court of Justice case of FLORENCIO MARIN JOSE COYE v. THE ATTORNEY GENERAL OF BELIZE the Court held ‘.. that the former Ministers could be held liable in misfeasance for loss of public property and that the Attorney General, as the guardian of public rights, was the person entitled to institute proceedings.
The Pradoville 2 land and the special treatment offered to its owners has been the subject of controversy for the last five years which has also seen legal action being resorted to. The previous PPP/C government had ignored complaints about the way the Scheme was formed and the price that land was sold at.
In addition to the ministers, a host of other officials and persons with close ties to the former PPP/C government secured plots in the Scheme.
