-says it must insist on answers from gov’t
The Private Sector Commission (PSC) must demand answers from the government about its proposed investment in the Marriott Hotel rather than offer support for an initiative which will crowd out the private sector, Pegasus CEO Robert Badal says.
Reacting to a release by the PSC and statements by its Chairman Ramesh Dookhoo, Badal said that it was a “typical reaction” from the Commission which failed to address the critical issues relating to the private sector. He said that reactions like these are what lead many Guyanese to believe that the PSC is a body with “soup drinkers” who do not know how to deal with issues affecting the private sector.
In a statement issued on Wednesday the PSC said it supports the establishment of the Marriott Hotel in Guyana but believes that more disclosure by the government regarding its involvement in the project would be useful. It also urged that the government have ongoing consultation with all stakeholders.
Badal, who contacted Stabroek News to share his views, said that the request by the PSC for more disclosure by the government was rather vague. He said that the government needed to name the investors, say what agreements are being entered into and disclose the management fee for the new hotel. He said too that the PSC should also demand greater accountability and transparency from the administration as it related to issues that affected the private sector and the country as a whole.
The Marriott project, Badal said, was simply not viable since previously when it was advertised no one was interested. “If it was viable people would be interested, the banks would be interested,” he told this newspaper. Badal said too that it is important that the investors in the hotel be publicized. He said recent trends indicate that whenever the government partners with private investors, these are usually friends of the government.
Meanwhile, Badal criticized Dookhoo’s position in relation to the National Industrial and Commercial Investments Limited (NICIL) and said that the operations of the entity should be condemned for their illegality. The PSC Chairman when asked about the use of public funds for the project had pointed to the function of NICIL. “The Government of Guyana, other than those revenues that come from the payment of taxes, has an investing company called NICIL which acts on behalf of the owners in all government investments.” Badal countered by saying that “all the resources of NICIL belong to the people of Guyana.” He said too that the funds from NICIL have not been placed into the Consolidated Fund as is constitutionally required and that the audited financial statements of the company have consistently not been laid in parliament.
Regarding the Marriott hotel, the PSC said that the impact of additional international branding will have a positive result for the country as customers loyal to their brand will be attracted.” Badal rejected this supposition and said that “it doesn’t mean that people will come.”
According to him, the industry is now close to break even point and he said too that the country has three times the number of rooms that is required.
However, Badal said if the Marriott chain wanted to establish a hotel in Guyana it should, but this should be done with the chain purchasing land on its own accord and using its own funds to build it. He opined that a chain so popular as the Marriott would not have difficulty accessing finances and as a result the government had no need to use taxpayers’ money to fund it.
Badal said he had borrowed money to acquire and refurbish the Pegasus Hotel and said too that his investment had no incentives attached to it. Meantime, Badal indicated that should the government heed the call of the PSC for appropriate consultations to be held with stakeholders, he would willingly participate.
