Dear Editor,

I have read with disgust a story captioned ‘NICIL presses Robert Badal for dividends’ in the Kaieteur News edition of April 2, 2009.

This story contains several gross inaccuracies, namely:-

(a) That I personally am a party to the court proceedings initiated by NICIL while I am not. The proceedings are between NICIL and Guyana Stockfeeds Inc (GSI).

(b) That NICIL obtained judgment and that I have appealed. Again, I am not a party so could not appeal. It also studiously omits mentioning that GSI has obtained a stay of execution which is extant.

(c) That National Edible Oil Company (NEOCOL) was sold to GSI by me personally. I have never owned NEOCOL. NEOCOL was sold to a company named National Edible Oils Fats Inc (NEOFI) which liquidated it and GSI purchased its capital assets for significantly less than their value.

(d) That I was responsible for NEOCOL’s failure. NEOCOL became insolvent while owned and managed by NICIL, not me. Indeed, this was why it was sold by NICIL and the Privatisation Unit of the Government of Guyana.

(e) That POPEYE’s which was owned by me became insolvent and was then sold to GSI. POPEYE’s from its inception in 2006 has generated large surpluses, and contributed 30M to GSI’s profits for 2008.

(f) The story alludes to fears that I “may be siphoning money” from GSI and diverting it to offshore companies. Diverting funds by individuals in the manner suggested by the newspaper is a criminal offence. The newspaper did not have the decency to check the source of these “fears” to ensure they were credible before rushing to print them, thereby defaming me. Indeed, if the newspaper had checked with either GSI or me, it would have discovered how groundless such fears were! However, it avoided doing so for reasons best known to it.

(g) That GSI is failing to pay dividends to its shareholders. GSI, like many other large companies in Guyana, pays dividends through a payment agent (a reputable corporation in Guyana). (GSI’s payment agent had been put in funds by GSI to pay dividends since the first week of March. However, due to an internal problem, it did not issue these cheques until April 1. Prior to publication, KN Editor Mr Adam Harris had called me and was informed of these matters. Yet despite being informed of the facts, the newspaper nevertheless deliberately omitted this information and instead carried this story suggesting that I have been withholding payments from shareholders. This suggestion is patently ridiculous as I am the largest single shareholder and would be unlikely to withhold dividend payments to myself.

(h) The story mentions that the government was dissatisfied with the prospect of my becoming the owner of the Pegasus hotel, and had been keen instead to lend its weight to a consortium that included some prominent local businessmen. While I am unable to comment on the truth of that, I am not at all surprised.

This story is the worst example of unprofessional journalism I can recall. The glaring inaccuracies, deliberate or at best grossly negligent omissions and cavalier disregard for a fundamental tenet of journalism, ie seeking the other view, are inexcusable.

Yours faithfully,
Robert Badal