Dear Editor,
I wish to compliment the Guyana Manufacturing & Services Association (GMSA) on the position it has taken on the Rudisa CCJ award and call on Guyanese again to get behind the government to bring Rudisa back to the table.
From my calculations Rudisa would have a net liability in favour of Guyana to the tune of over US$15 million. Here are my calculations: –
Penalty for under invoicing –
Rudisa’s under invoicing was equivalent to the environmental tax and the penalty under the Customs Act is three times the value of the under invoicing. Thus this penalty would be US$18 million
VAT on the under invoiced goods – US$96 million
Profit taxes on CCJ Award of US$6 million. Remember it’s CIDI the Guyana company that paid the environmental tax – US$ 2.4 million
From my calculations Rudisa would owe Guyana a net of US$15.36 million. This could buy 50,000 laptops or give education assistance for two years.
This brings me to the letter of August 13 from Ganesh Mahipaul. I am in total agreement with Mr Mahipaul, we must honour the CCJ decision. However, the testimony from Rudisa officials accepted they under invoiced. Thus my saying that Guyana should not pay a cent to Rudisa because the net effect would be Rudisa/CIDI will owe us.
But I want to give a reminder that our Guyana Consumers Association needs to join in and sue CIDI for the same amount of the award.
As for Guyana Manufacturers, they have to come together and fight manufacturers in Trinidad and Suriname and any other Caricom country that subsidizes their manufacturers who sell to Guyana, their energy cost being the area to argue.
Serious work needs to be done by the GMSA and they should look at the same treaty and press cases at the CCJ and the Caricom Competition Commission. Unfair competition, third degree price discrimination, under invoicing are all possibilities.
Yours faithfully,
Manzoor Nadir
