A statement by the Private Sector Commission (PSC) on Thursday condemning an APNU motion to have the government move to lower tolls to cross the Berbice Bridge was not discussed with its constituents.
Sources say that this lack of consultation by the PSC with its constituents on a matter that was seen as very important has raised disquiet. Sources within the private sector say that an explanation will be sought from the PSC and a full discussion of the issues is expected.
The motion submitted two weeks ago by APNU to parliament seeks to have the government instruct its representative on the board of the Berbice Bridge Company to demand an immediate lowering of tolls.
The motion in the name of A Partnership for National Unity (APNU) MP Joseph Harmon and seconded by Amna Ally has a clause that says “Be it resolved that the National Assembly call on the Government of Guyana to instruct its representative on the Board of Directors of the Berbice Bridge Company Inc to demand an immediate reduction in tolls charged by the Berbice Bridge Company Inc for crossing the Berbice River in the following manner.”
The motion which is to be debated at an upcoming session of Parliament, seeks to have the present toll for motor cars and minibuses slashed from $2,200 to $1,000. It also wants the toll for a 50-seater bus cut from $12,800 to $9,000 and for a 30-seater bus from $7,200 to $6,000 among other adjustments.
Arguing for these changes the motion says that the Berbice Bridge was built with significant investment by the Government of Guyana which through the National Industrial & Commercial Investments Ltd (NICIL) is a preferential shareholder and a member of the Board of Directors of the Berbice Bridge Company Inc.
On Thursday, the PSC excoriated the motion without naming APNU.
It said “The Private Sector Commission of Guyana notes with deep concern a recent call by some members of Parliament that the Government interfere in the management of the Berbice Bridge Company, a Private Sector Company and concessionaires for the Berbice Bridge, and force Tariff reductions.
“The PSC will vigorously oppose any form of non-regulatory interference in the management of Private Sector companies, which in this instance if allowed to proceed will negate against attracting private investment in similar infrastructural projects.
“The Berbice Bridge Company is owned 80% by Guyanese Private Sector interests, including pension funds and 20% by an institutional investor, the National Insurance Scheme (NIS), that also holds non-voting preference stock in the Company and provides one of the few opportunities for a good investment return on Guyanese workers’ NIS contributions and may also be considered critical to the future life of the Scheme. As far as we are aware, the Government directly or indirectly has no investment in, or liability relating to, the bridge at this time.
“The Bridge Company attracted investment by offering a minimum return to investors who were prepared to take the financial risk; this must not be interfered with. The company’s safety and maintenance records are well above average, as are customer facilities at both ends of the Bridge. The Company is managed by a Board of Directors representing the investment interests; no one Director can determine or undermine the decision of the full Board, Government or not.”
Since the PSC statement was issued, business analyst Christopher Ram said the PSC is completely misguided on the matter. In a letter to Stabroek News, he referred to the PSC contention that “As far as we are aware, the Government directly or indirectly has no investment in, or liability relating to, the [Berbice River] bridge at this time.” Ram described this as “mindboggling ignorance given all the public revelations and exchanges over the Bridge Company’s ownership and performance.”
Ram argued that “The ownership structure of the company is made up of ordinary share capital of $400 million and preference shares of $950 million. The holders of the ordinary shares are NIS, New GPC, Queens Atlantic and Secure International Finance Company each having $80 million each, and Hand-in-Hand and Demerara Contractors each holding $40 million.
“What this means is that the Government, inclusive of the NIS, owns 76% of the issued shares of the company. Apparently, the PSC’s awareness, or lack thereof, also does not extend to knowing that NICIL, a government agency, owns what is called a Special Share in the company. The Articles of Amendment of the company expressly provide that in respect of specified matters, `no action can be taken by the [Bridge] Company, without the affirmative vote of the holder of the Special Share.’ And because the PSC claims not to know that the Government has this $950 million investment in the Bridge Company, it does not need to address the illegality of NICIL granting the Bridge Company an annual subsidy of around $110 million of dividends forgone.
“When purporting to speak for the private sector, the PSC is expected to be a little more careful with facts. Failure to do so may not embarrass those who cause such statements to be made but reflects poorly on the rest of the private sector”, Ram said
