Government intends to review the controversial agreement that the former administration made with a PPP outfit for the 99-year lease of Red House at a rate of $1,000 per month, according to Minister of State Joseph Harmon.
“Anything like that would be advertised. A lease for in excess of 25 years has to be advertised and so on. It is treated like a transport,” Harmon told Stabroek News last week.
Asked if based on his evidence there was any advertisement, he said, “I haven’t done the full investigation. All I have is a lease for 99 years to this company and that the lease rent is $12, 000 a year.”
Harmon’s disclosure to the National Assembly that the PPP/C government, after renovating Red House to the tune of millions, then leased it for 99 years to a private company has prompted concerns and calls for the deal to be scrapped.
Harmon said the national monument, which was the former home of late President Cheddi Jagan, was leased to the Cheddi Jagan Research Inc., a private company. The members of the company have been linked to the PPP. He said among those listed its executive members are former president Donald Ramotar, Geoffrey Da Silva, Nadira Jagan-Brancier, James Rose, Michael Khan, Kellawan Lall, Navindra Chandarpal, Mohammed Sattaur and Hydar Ally.
Asked if anything can be done to reverse the agreement, Harmon said it will be addressed once the budget is finished. “It might be the better thing for them to give it up, it is easier. They might be persuaded that since this is something that is not in public interest that they might be persuaded to say, let us return this thing back to the state,” he suggested.
Shortly after the revelation, former auditor general Anand Goolsarran called for the revocation of the lease. “Considering that this building was completely refurbished at enormous costs to the state, the shock was even greater to learn that the property was leased since 2012 to this company for a nominal sum of $1,000 per month for a period of 99 years. To add salt to injury, the staff of the centre continued to be paid by the Treasury,” he had said in his Stabroek News column on accountability.
“The agreement should therefore be rescinded, and those responsible should be held personally responsible for this abuse/misuse of public resources, which by definition constitutes an act of corruption,” he urged.
A source close to the present administration says the deal borders on criminal wrongdoing as it is unconscionable that a government could lease a prime piece of real estate for such an amount of money. “Even farmlands cost more than that. We are taking here about land located in the heart of this town’s commercial district…you are going to lease it for $1,000 per month? That is one big fat joke,” the source said.
Further, the source noted that what is even more concerning is the fact that the historic building was leased to a company that is aligned to the PPP. “It makes it even more serious because this thing was leased out to a company that you can say was close to the party. If it were a separate company, with no strings attached, the fuss would not have been so mammoth but this is a PPP government helping out its buddy company… Isn’t that criminal, particular when you are using state resources for your own use and benefit?” the source questioned.
It was pointed out too that the deal was done in secret. “This is absurd and it leaves room for speculation and there were many other deals like this one… deals where the state is being robbed… Why such a small fee? Why not a $20,000 or 30,000 a month?” the source said, while adding that all Guyanese should reject what has happened and protest until the deal is scrapped. “To allow this to happen for the next 99 years will be a slap in the face for all Guyanese,” the source said.
