The Private Sector Commission (PSC) has expressed “great concern” about government’s continued refusal to pay Dipcon Engineering Services Ltd sums owed since 2009 despite several court judgments in the company’s favour and questioned government’s respect for the judiciary and the principle of separation of powers.
“The private sector must, at all times, be confident that the principles of sanctity of contracts reinforced by the independence of the Courts will be honoured by the State,” the PSC stressed in a statement last evening adding that for both foreign and domestic investors to do business with any degree of confidence, they must be confident that the rule of law, administered by an independent judiciary, will, at all times, be upheld and respected by the government of the day. According to the PSC, the intervention of President David Granger to protect the Minister of Finance, Winston Jordan from the law rather than to encourage him to pay the amount owed and thereby follow the rule of law, sends a message that businesses and private investors can be wronged with impunity.
Jordan had been given up to Monday by Justice Priya Sewnarine-Beharry to pay the US$2,228,400 owed to the Trinidad-based construction company, failing which he would be liable to imprisonment for 21 days. In addition, the judge imposed court costs, which have to be borne by Jordan in the sum of $3 million.
Instead , President Granger invoked his power under Article 188(1)(b) of the Constitution to grant Jordan, both in his personal capacity and in his capacity as minister, “respite of the execution of the punishment until all appeals and remedies available to him and the State have been exhausted.”
The decision was published on Monday in the Official Gazette and was signed by State Minister Dawn Hastings-Williams.Article 188(1) empowers the president to grant to any person concerned in or convicted of any offence under the law of Guyana, “a pardon, either free or subject to lawful conditions.”
Article 188 (1)(b) adds that the president may “grant to any person a respite, either indefinite or for a specified period, of the execution of any punishment imposed on that person for such an offence.”
The case against Jordan was filed by Dipcon through Attorney Timothy Jonas after a string of failed attempts to recover the money, despite previous court orders.
In its request to the court to grant an administrative order compelling the minister to pay, Dipcon in its application by letter dated December 28th, 2015, to the Registrar of the Supreme Court, transmitted the order made by Justice Rishi Persaud to the minister, who it argued, “thereupon became obligated… to direct, by warrant under his hand, that the amount awarded thereby to be paid.”
The company has argued that the minister, in breach of his statutory obligation, “deliberately and contumaciously refused and failed to comply with his obligation” under the State Liability and Proceedings Act and has subverted the said order of court to pay the said judgment or any part thereof.
Jonas had noted that though both the Court of Appeal and CCJ had upheld Justice Persaud’s ruling, Jordan has repeatedly acted in defiance of all those judgments.
