-also received $1.2 billion gov’t subvention
In 2004, government holding company National Industrial and Commercial Investments Limited (NICIL) recorded revenues of $26.9 billion and profit after taxes of $1.6 billion, compared to revenue of $30 billion and profit of $12.5 billion in 2003.
Despite its substantial income, in 2004 the company also received a subvention of $1.2 billion from the government. The majority of its revenue that year ($23.5 billion) came from the sale of goods, of which $15.5 billion were from the sale of fuel and lubricants. In 2003, revenue from the sale of goods amounted to $14.5 billion while $11.3 billion were earned from the disposal of subsidiaries.
The 2004 Consolidated Annual Report of NICIL is the latest available publicly and was tabled in the National Assembly Thursday by Minister of Finance Dr. Ashni Singh. It comes amid heated exchanges among the political parties and some financial experts as to how the entity treats its finances. A debate on this is scheduled to take place at the end of the month.
In the report, NICIL declared the financial statements of all of its subsidiaries and the state of all investments made.
The Audit Office of Guyana audited the financial statements of NICIL for the year 2004 and produced a report on February 21, 2012. The audit report said that the consolidated financial statements “present fairly in all material respects the financial position of the National Industrial and Commercial Investments Ltd as of December 31, 2004 and the results of its operations and cash flows for the year then ended in conformity with International Financial Reporting Standards and the Companies Act 1991.”
According to the report, NICIL is a holding company with subsidiaries and among these were Linden Electric Company, the Guyana National Cooperative Bank (Trust) Corporation, National Edible Oil Company Ltd, Guyana, National Shipping Corporation, the Guyana Oil Company Limited, Guyana National Printers Limited, Guyana National Newspapers Limited, Property Holdings Inc, National Communications Network and the Aroaima Mining Company.
The report said that for the year 2004, the Group’s revenue amounted to $26.997 billion and profit after taxation amounted to $1.633 billion. Earnings per share amounted to $15,995. For that year the Directors approved a dividend to its shareholders in the amount of $622.5 million.
In the notes to the financial statements, NICIL said that effective January 1, 2002, a management cooperation agreement was signed appointing the Privatisation Unit as exclusive manager of NICIL. “It was agreed that that the collecting and accounting of privatisation proceeds, rents, dividends and other income of the combined entity will be done in the name of NICIL. It was also agreed that all costs and expenses of the combined PU/NICIL will be regarded as costs of NICIL.”
A motion to compel NICIL to deposit its finances into the Consolidated Fund will be debated on May 30, having been deferred from Thursday because of time. The motion, brought to the National Assembly by Shadow Finance Minister and APNU MP Carl Greenidge, seeks also to make provision for an independent financial audit of NICIL and the Privatisation Unit.
