– private sector should not be “gripped by fear”
Chairman and Chief Executive Officer of the Pegasus Hotel Robert Badal believes the continued growth and expansion of the private sector in Guyana can only be assured in circumstances where businessmen are prepared to identify constraints and intervene with government to have those removed.
“I believe that business people in our society have a responsibility to identify those things that are wrong; things that affect the growth of business and bring these to the attention of the authorities,” Badal declared in an extensive interview the full text of which appeared yesterday in the October issue of The Guyana Review.
Badal, who is also Chairman and Chief Executive Officer of Guyana Stockfeeds Ltd said in the interview that what he described as “the vindictiveness of some of the people in the corridors of power” had seen “acts of reprisal” that have targeted some local business enterprises. Alluding to his own experience of barriers being placed in the way of his business pursuits, Badal said that apart from having experienced “difficulties” in securing environmental permits for the erection of a rice mill he had been denied concessions associated with his rice investments in circumstances where “these were being granted to people who were not even in the sector.” And, according to Badal the establishment of the rice mill was delayed for two years “after I had to move to the courts when the Central Housing and Planning Authority (CHPA) unanimously approved the permit only to have it rescinded on ministerial instructions.” He said that prior to his legal battle to overturn the revocation of the CHPA’s planning permission he had been forced to take legal action after a permit granted by the Environmental Protection Agency (EPA) was withdrawn on the grounds that an environmental impact assessment was necessary before the project could go ahead. “While businessmen and women can expect that there will be challenges, they do not expect difficulties of that nature. It creates a very unpredictable environment and in some cases the environment here has been very unpredictable,” Badal said.
Badal, a one-time corporate member of the Private Sector Commission (PSC), said that while it is “a good thing” to be part of private sector organizations, businessmen are entitled to expect that such organizations would lend “collective support” to private sector causes. “Unfortunately, I recall that when there were issues that needed to be addressed which affected my particular business, the PSC was not addressing these issues. I raised these issues with them even at the corporate level and nothing was done. Frankly, the commission has always been that way.”
Asserting that the PSC has proven to be less than effective in its pursuit of business interests Badal said the executives of the organization appear to be “gripped by a fear that if they raise their voices in matters that affect them, they will be put on a black list… that the companies that they run will suffer in one way or another.” He said what was needed “were the kinds of changes in regulations and procedures that ensure that business owners do not have to go to government officials seeking one concession or another. What the private sector must do is to enter into negotiations with government leading to a situation in which their rights and entitlements are firmly written within the law. We cannot afford a private sector that is so gripped by fear that it decides to cooperate, whatever the circumstances.”
And according to Badal, the practice of democracy is critical to the creation of a healthy business sector. “There are certain elements of democracy that are very important for the promotion of a healthy business climate; things like a Freedom of Information Act, addressing corruption and the need for an Integrity Commission; an independent Central Bank that is not subject to political influence; an independent judiciary that does not respond to calls from the powers that be. These are some of the most important things that affect the business environment. We need to ensure that no public official abuses authority through instructions to agencies; we need to have a system that anyone can sue in court and anticipate an outcome based purely on the merits of the case. The business environment must be level for all players and it must be characterized by equal opportunity for everyone,” Badal said.
Asked about what is regarded in some quarters as his inclination to challenge authority, Badal said it was not a question of challenging authority, rather it was a question of anticipating reasonable return on investment. “I understand my rights as a Guyanese citizen and I also understand my responsibilities to my country, my employees and the community in which I operate. I would not allow a government functionary or a public servant or a statutory body to unilaterally curtail my legitimate business pursuits. The courts of the land are a last resort. I will not tolerate any unjust frustration of my efforts as a businessman without raising my voice against it,” Badal added.
Badal, an accountant by profession who holds an ACCA and a Masters Degree in Business Administration has clashed publicly with President Bharrat Jagdeo over official announcements that a new hotel is to be erected in Georgetown under the internationally-renowned Marriot brand. While the view expressed is that Badal is opposed to the establishment of the new hotel because he fears the competition that it will pose, the businessman said what he is opposed to is what he has described as the use of taxpayers’ money to build a hotel for the Marriott group. In his recent interview, Badal avoided comment on the Marriot issue, alluding instead to his business decision to invest in the hospitality sector. “The property was for sale, I saw the opportunity and I took it… I also looked at the Pegasus with its long history and the tremendous goodwill which the hotel had built up over the years. Another important dimension lies in the fact that the Pegasus, in my view, is just about the best real estate in the country. It is a heritage site given its architecture and what it has represented over many years. So that apart from the business side of the venture it is also a combination of other important factors,” he added.
While Badal said that he has had “difficulties” in his engagements with state agencies responsible for facilitating permits associated with the tasking of business initiatives he described his local entrepreneurial pursuits as “quite successful.” Asked to reconcile his success with his claims of counterproductive official intervention, Badal said he has come to “understand” and “make allowances” for a certain amount of difficulty. “I believe that I have developed strategies to ensure that I can get ahead. I have certain objectives that I want to realize and I certainly will not be denied by those kinds of obstacles… No public official should frustrate economic progress by placing obstacles in the way,” Badal added.
