Dear Editor,
In reference to your news item, ‘Private Sector supports Marriott set up, urges more government disclosure,’ (August 5), the mere fact that Chairman of the PSC, Mr Ramesh Dookhoo, can say in one breath that the PSC supports the setting up the Marriott hotel in Guyana, but quickly urged the Jagdeo regime to be more forthcoming with information, reflects a PSC that is suffering from an acute case of bipolar disorder – swinging from expressing euphoric support for a project to almost immediately depressingly decrying the lack of disclosure on the same project.
I know some may want to say it reflects a balanced perspective, but there is nothing balanced about this stance, because the first thing the PSC was supposed to do was a ‘diligence check’ on background information about the project that may involve PSC members, and only after being satisfied that the information met private investment criteria could it go public with support for the project. Instead, the cheerleading PSC chair placed the cart before the horse and decided to whip the horse so it can push the cart. But this is exactly the kind of nonsense that happens when supposedly sound business persons become politically compromised.
And while bipolar disorder is the least of the PSC’s problem in Guyana right now, this latest oddball manifestation demands it be exposed for the tacit support, rather than lead, role it has been playing for the last decade as Guyana moved increasingly closer back to a place where the government is the dominant mover and shaker in public life. Except that in this instance, it is only a handful or chosen few who are the principal beneficiaries of this dominance by government.
In a recently published letter in SN, I shared parts of the President’s 2005 address at Banks DIH’s 50th Anniversary celebration, where he urged the private sector to see itself as the main engine for economic growth, since government should not be all things any more to all the people. I also showed where he challenged the private sector to come up with an economic blueprint and he will cut the red tape, but not only did the PSC fail to do its part, the government’s own red tape regarding private sector investments got worse. The amount of scrutinizing and palm greasing that have taken place discouraged many serious investors, while others simply played along to get along.
Still, even though Mr Dookhoo was not the head of PSC in 2005, one has to ask him as the current PSC head where his organization’s blueprint for economic growth is. And I am not talking about encouraging the surge in consumer-based businesses that rely heavily on imported goods, nor am I talking about the role of money-laundering in the underground economy that is a significant part of the formal economy, thus forcing legitimate businesses to suffer. I am talking about taking the lead role in doing exactly what the government is doing with public funds.
Because the private sector was either lethargic or deceived into playing second fiddle, the President is now able to go back on his own word not to make the government all things to all people and has seized the investment initiative from the private sector under what are clearly questionable deals involving public funds. Why can’t the private sector be the lead partner in the Marriot, ICT, Amaila Falls Hydro Project, etc? Where are the private sector-sponsored regional and international trade fairs, investment seminars and arranged local tours, marketing strategies, etc? Maybe it is time for an alternative private sector group to emerge that will not kowtow to the government out of fear?
Meanwhile, in response to a SN question about the government’s use of public funds (US$20M) for the Marriott project, Mr Dookhoo simply said, “The government of Guyana other than those revenues that come from the payment of taxes has an investing company called the National Industrial and Commercial Investments Limited (NICIL) which acts on behalf of the owners in all government investments.”
The problem with that response is that it failed to address the private sector’s biggest headache: the government is now in the business of either competing directly with the private sector or creating a whole new role for the private sector that is based on a working relationship with the government.
For whereas regular private sector businesses have to borrow money from banks at prevailing rates to run their businesses, those private sector businesses that partner with government’s NICIL will be assured of easier/ quicker loans at much lower rates simply because of their cozy relationship with the government, and could even see massive returns on their investments if government divested itself of the joint ventureship.
The bottom line is, despite government’s lack of transparency in its private-public partnerships that should make investors leery, investors have to make a choice: either join in or risk being marginalized.
And that’s one reason why I think Mr Dookhoo would do well to apprise himself of more facts about NICIL and inform his members of what they are up against. For example, does NICIL, which actually awarded the now dubious Fip Motilall road building contract, fall under the Procurement Act? Are monies from state privatization deals being diverted to NICIL instead of going into the Consolidated Fund, the same way the Lotto proceeds were supposed to but are not? When last did NICIL file annual tax returns or have its accounts prepared and audited in accordance with the law?
More importantly, the weird relationship between the Privatization Unit and NICIL, both of which are headed by the same person, Mr Winston Brassington, in which one entity sells state properties and the other takes the proceeds from the sales to invest in private businesses is a classic case for both Parliament and probably the court to address on possible conflict of interest issues. Apart from competing with the private sector, government can use its financial might to put out other private sector businesses by forcing down prices.
It is unfair, but that’s the reality Mr Dookhoo and his PSC members must deal with going forward.
Yours faithfully,
Emile Mervin
