Dear Editor,
When I read the Stabroek News of June 6th, 2008, I was taken aback by the rude outburst by the President at prominent businessman Yesu Persaud, Chairman of Demerara Distillers Limited (DDL), for his suggestion that other local companies should be similarly considered for tax concessions. This issue is multi-faceted so each aspect needs careful analysis:
1. I really value Mr Persaud’s opinions on business but I must disagree with him. It is not feasible to give similar concessions to other local companies unless they are so marginal that the state can afford to forgo the taxes. Thus, a new distribution company or routine business like an insurance company cannot benefit from such tax concessions but this is no excuse for disrespecting one’s elders. We can disagree like gentlemen.
2. Is it unreasonable for a tax holiday to be granted for a textile and pharmaceutical investment? Can we say that these are industries that are not prominent in Guyana and need an incentive package to give them the start up necessary to effectively contribute to growth in the economy? In my opinion, these two companies are not routine or mainstream businesses and should be favourably considered for tax holidays. However, the pertinent question that needs to be asked is, “Was this act of granting concessions to the Ramroop Group in compliance with the laws of Guyana and was due process followed?”
This is where the pack of cards starts to crumble and this could be the reason for the outburst by the President.
3. After reading Christopher Ram’s article in the June 8th Sunday Stabroek, and after consulting some legal minds in Guyana, I am convinced that the laws of Guyana were broken.
4. This is quite a quandary to be in, since we are all asking the PNC to respect the rule of law, we are asking “Fine Man” and his band of criminals to respect the rule of law.
From my reading of the Bhagwat Gita, a very effective text on the art of good governance, a Government must not only work, but be seen to be working for everyone’s benefit. Did Doonauth Singh advise this legal course of action, did Ashni Singh advise on the tax procedures, if so their credibility comes into question?
The PPP has a moral and ethical responsibility to demand that this deal be reviewed by Parliament and any error be corrected such as passing of the necessary subsidiary legislation.
I await one of the two good men remaining in the PPP, either Moses or Ralph but then who knows, another may fill the maximum leader’s place.
I am surprised that Yesu Persaud did not walk out of the room but upon reflection, I realised that his wisdom allowed him to deflect ignorance and concentrate on his true value and purpose in life. That is why he is the most successful entrepreneur in Guyana. My respect for Yesu Persaud went up ten notches.
Yours faithfully,
Avinash Balram
