The Alliance For Change (AFC) is demanding that the National Industrial and Commercial Invest-ments Limited (NICIL) be subject to total scrutiny in the Economic Services Committee of Parliament before the departure of Winston Brassington, its Head, citing numerous instances of opaque financial dealings.
The party made the call at its weekly press conference held yesterday at the Sidewalk Café.
“In view of the light of no oversight by the Auditor General into its affairs, its flagrant violations of the requirements under the Companies Act to file with the Registrar of Companies an Annual Return, such scrutiny is earnestly warranted,” said the party in a statement.
According to the AFC, NICIL has become the “vehicle of choice” for many of the Government’s questionable financial transactions. “Its Board of Directors is made up of almost entirely of Ministers of Government and is chaired by Dr. Ashni Singh [Minister of Finance],” the statement said, adding that the Board also includes Dr. Roger Luncheon, Head of the Presidential Secretariat and Manniram Prashad, former Minister of Tourism, Industry and Commerce.
It also accused NICIL of secretive and reckless spending and noted that on the direction of Cabinet, the Guyana Geology and Mines Commission paid NICIL $1.8 billion to build roads “which it has never properly accounted for.”
It said that during the past five years NICIL received hundreds of millions as privatization proceeds, including lands sold to John Fernandes Limited, Guyana Bank for Trade and Industry, and the Ramroop Company, Queens Atlantic Investment Inc.
“It was NICIL that was at the centre of the tax concession given to the Ramroop Company, concessions that turned out to have been unlawfully granted by the Minister of Finance. It is at the heart of the proposed Marriott Hotel deal and indeed has been shopping around for any partner that would give the project legitimacy,” the AFC said.
“It is believed that the funds paid to Fip Motilall to build the Amaila Falls road came from NICIL. This contract, which everyone but [President Bharrat] Jagdeo and NICIL knew that Motilall could not deliver, was for $3 billion. Guyana is now left with no roads and some junk equipment,” the AFC said.
The party pointed out that NICIL funds financed the diversion of sewage in Kingston as part of a scheme to build a hotel. “Tens of millions have also been spent on related expenditure to set up another NICIL company to build that hotel. The company was formed with two persons in control, namely Winston Brassington and Marcia Nadir. They have been looking for a partner that would give the project legitimacy,” the AFC said.
The party noted that NICIL was at the centre of the arrangements to garner financing for the building of the Berbice Bridge. The party said that that financing has caused the NIS to face the real prospect of the loss of $5 billion. “It also waived half a billion dollars in interest from the bridge company so that the private investors of the bridge company could be paid”, the party said.
