Leader of the Alliance for Change (AFC) Khemraj Ramjattan yesterday expressed surprise that Guyana’s envoy to Kuwait had been convicted in 2003 of an offence under the US Securities Exchange Act and said an ongoing investigation will determine the gravity of the matter and ultimately the government’s decision.
Ramjattan, who is also the Minister of Public Security, was speaking at an AFC press conference. Dr Shamir Ally’s conviction would be of particular relevance to the AFC as he had been a member and financier of the party.
Dr Ally was later associated with the APNU+AFC campaign for the 2015 general elections and was selected several months ago for the Kuwait posting. Critics have said that both the party and the APNU+AFC government should have been aware of the conviction and the question is also being raised about why Dr Ally had not volunteered the information when he was being considered for the diplomatic service.
“We have also been indicating to him that he has to ensure that this investigation proceeds as expeditiously as possible so that we can make a decision as regards that,” the AFC leader said at the press conference held at his party’s Kitty Headquarters.
Dr. Ally, according to documentation, had a civil case filed against him and Ronald Lanchoney and Robert Mancuso by the US Securities and Exchange Commission (SEC). He was fined US$10,000 but it was stated that the defendants consented to the entry of the orders without admitting or denying the Commission’s allegation in the action.
“I am certain that Mr. Shamir Ally will defend himself and explain himself to the Minister (Minister of Foreign Affairs, Carl Greenidge) and then through the Minister to Cabinet what has happened,” Ramjattan said.
On Wednesday, Greenidge had said that an investigation had been launched following reports on Dr Ally’s conviction.
“We are trying to establish the veracity and determining the seriousness of the charge,” the Minister had said, while adding that due diligence was followed in the Ambassador’s appointment.
Yesterday, Ramjattan stressed that the investigation must be done to understand the gravity of the matter and inform what actions, if any, should be taken but pointed out that Dr Ally was fined without an admission of guilt.
“We have to be very cautious to a person who is extremely well qualified with professorship and all of that in the university he was lecturing in being a member of town boards and committees and even being made a public notary,” he said
“Of course, it did take us by surprise because we did not know and although the credential checks were made nothing was seen,” he added.
He said some scrutineer “out there” did manage to find the information, which shows that democracy is alive and kicking.
Ramjattan also cautioned that in the context of what has happened the press should be responsible since he has seen that as a result of the incident Dr. Ally has lost voting rights in the US. He said this has never prevented him from serving on a “number of town boards and committees” in North Carolina where he is from. He said he was also appointed as a notary public after the incident.
It was alleged that the three were involved in the dissemination of false financial information by Acrodyne Communications Inc in press releases and Commission filings in 1998, 1999 and 2000. It was stated that Mancuso, Chief Executive Officer of the company; Ally, the company’s former controller and Lanchoney were aware of numerous and significant problems with the company’s accounting controls, but failed to assure that its financial transactions were accurately recorded. As a result of their actions Acrodyne engaged in inaccurate and improper cost accounting and revenue recognition. It was also alleged that starting in the second quarter of 1999 and continuing through the first quarter of 2000, Ally directed that unsupported journal entries be made to the cost of sales and inventory accounts to bring Acrodyne’s financial statements in line with the gross margin percentage he had estimated for the period.
On March 6th 2003, the Commission ordered Acrodyne to cease and desist from future violations of the anti-fraud periodic reporting, and books and records provisions of the Exchange Act.
