The APNU+AFC government yesterday said that a special team is to be set up to ensure the prosecution of criminal offences connected to the sale of land at the ‘Pradoville 2’ scheme, where former President Bharrat Jagdeo and a string of current and former senior officials have houses.
The decision came after a perusal by Cabinet of the audit of the ‘Pradoville 2’ scheme, which was one of dozens of audits that had been commissioned by the government on entering office last year.
In addition, government will also hand over the audit report and another into the hosting of World Cup Cricket in 2007 to the Guyana Police Force for their own investigations into alleged criminal matters. A special prosecution team is also to be set up for the World Cup Cricket audit.
“Cabinet, upon examination of the reports, concluded that in both cases, there were indications of criminal culpability that required further investigation,” Minister of State Joseph Harmon yesterday told a post-Cabinet press briefing.
Harmon did not say which auditing firm or person conducted the two forensic audits. The Minister of State said that Cabinet also agreed that in each case, a special prosecutor’s team would be established.
Minister of Legal Affairs Basil Williams is now entrusted with putting together the two teams and at next week’s Cabinet meeting will submit the names. Said Harmon, “The Honourable Minister of Legal Affairs would submit to Cabinet, within one week, on the composition of such a team…the reports will be handed over to the police for criminal investigations to commence into those matters.”
Harmon added that the prosecution team would not be limited to local personnel as it would have a “wider sweep” and that government was “looking to bring persons who are capable of handling these matters.”
“Yes, we are looking at the region, in the first instance as well and then further afield. I did indicate to you that we are getting offers of assistance, not just from the region but out of the region, and because the question of corruption and the question of transparency in government is something that is international and we are getting assistance in that regard,” he noted.
The Attorney General had previously spoken about possible civil action in connection with the ‘Pradoville 2’ scheme at Sparendaam, East Coast Demerara but said that he would first have to see the evidence. Nonetheless, he has said that he favoured criminal prosecution because it will allow for all the evidence to be reeled in.
SARU
An investigation was done earlier on the `Pradoville 2’ scheme by the State Assets Recovery Unit (SARU). That investigation had discovered that the lands were sold for far less than they were worth. Among those who benefited from the arrangement were former president Jagdeo and former PPP/C ministers Jennifer Westford, Priya Manickchand, Clement Rohee and Robert Persaud. Former Guyana Defence Force Chief of Staff and current presidential advisor Gary Best and Director of Public Prosecutions (DPP) Shalimar Ali-Hack are also on the list of beneficiaries.
Manickchand, the SARU report said, sold her land to Dave Naraine for $100 million on February 21, 2013, three years after the purchase of the said land, without any written permission from the Central Housing and Planning Authority (CHPA), thereby being in breach of Clause C of the conditions attached by CHPA.
It added that Persaud’s land was transferred into the names of relatives. On September 18, 2014, the said land was sold to LSR Company for $90 million without any written permission from CHPA, thereby breaching the attendant conditions of ownership.
The document further said that the overseer of the Industry/Plaisance NDC had indicated that no rates have been paid since occupancy of the land.
SARU’s investigations also revealed that a decision was taken by Cabinet in 2010 for the land to be privatised. This decision was done without any authorisation and approval from the relevant bodies. Several feasibility studies were conducted at the behest of Cabinet and huge sums of monies were spent to develop the land.
The unit, in its recommendation, said the owners of the land could be held liable for misconduct in public office and that the Attorney General could institute proceedings against them.
Best had confirmed ownership of lands at `Pradoville 2’ and said that he was aware of an investigation. Best, who retired from the army in 2013 and is currently Presidential Advisor on the Environment, had previously declined to comment further given that the matter was engaging the attention of the AG and might be referred to the DPP.
He said that when a conclusion had been reached, whatever are the findings, “It will take its normal course.” When he bought the land in September 2012, he was heading the army.
Former President Jagdeo had pointed out that he would not say much on the issue as it was sub judice but stressed that the public has an incorrect understanding of the transactions. He owns almost two acres of land in the scheme and he currently resides there.
Jagdeo had said that it was unfair to calculate the profits made on homes sold by ministers in the controversial housing scheme by using the value of the empty land as the base. “They did not sell a land. They sold a land and a house. They bought the land from the government so when you talk about this 2000 percentage profit margin you are comparing the selling price (of land and house) with the land price,” Jagdeo had said in defence of his former ministers.
Harmon pointed out that among the “criminalities” found in the audit were that the lands were transferred for significantly less than market value.
”The audit found that there were plots of lands that were transferred at not market prices (and that) the valuations that were given were unusual for that time and that location. The audit also looked at the transfer of a particular piece of land that is not from what is now known as Pradoville 2 for the price for which it was transferred and then compared that to the price which the previous administration almost gifted themselves those portions of land,” the Minister of State explained.
The `Pradoville 2’ scheme has been deeply controversial for many years and it was believed that the Jagdeo administration was instrumental in instructing the relocation of a state television antenna from the land to the West Demerara so that the area could be parcelled off for housing.
