The High Court recently ordered the Guyana Telephone and Telegraph Company (GTT) limited, to pay over to the National Industrial and Commercial Investments Limited (NICIL) the more than US$3M owed in garnishment for the outstanding sum for the sale of the government’s shareholding to a Chinese company.
The amount represents a garnishment order for payment of all dividends due and owing to Hong Kong Golden Telecom Company Limited (HKGT) accrued upon the 4,125 shares issued to it by the GTT.
Those shares in turn represent the final dividend of the sum of US$775.76 per share by the GTT for the year ending December 31st, 2019 which stand charged to NICIL by an order of court dated July 15th, 2019 against HKGT, as well as any other dividends to be paid in the future by the GT&T.
Justice Franklin Holder who presided over the challenge brought by NICIL against HKGT, Golden Mabole International Investment Group Company Limited, Ma Bole and the GTT; further ordered that the US$3,200,010 garnished, or its equivalent in local currency at the Bank of Guyana exchange rate at the time of payment be garnished, as well as any other dividends to be paid in the future by the GTT.
Justice Holder ordered that the US$3,200,010 be paid within 14 days from which the judge made the order on January 13th—as well as any future dividends becoming due and owing to HKGT within 14 days of becoming due and owing.
The judge has also awarded court costs to NICIL which has to be borne by the defendants/respondents— HKGT, Golden Mabole International Investment Group Company Limited, Ma Bole and the GT&T.
NICIL, the claimant/applicant was represented by attorneys Devindra Kissoon, Natasha Vieira and Nicholas Carryl.
In November, 2018, the Government ordered NICIL to take legal action to recover the outstanding US$5 million from HKGT for the purchase of government shares in GTT.
This disclosure was made by Minister of State Joseph Harmon during his post-Cabinet press briefing on November 30, 2018.
“Cabinet has passed this matter onto the Ministry of Finance to advise NICIL to proceed to take the legal steps that are necessary for us to be able to recover this sum of money,” Harmon said. The two sides had been locked in negotiation for in excess of two years to resolve the situation.
The shares were sold to the Chinese firm in 2012. The deal was entered into by the then PPP/C administration but only US$25 million of the agreed US$30 million was known to have been paid.
In March 2016, Harmon and a delegation controversially travelled to China to engage in discussions regarding the outstanding money.
While it was later stated that Harmon had obtained documents which showed that the money was paid over prior to the APNU+AFC coalition taking office and efforts were underway to track the money, NICIL had said that it had not received the outstanding balance. The government later clarified that no such documents were received.
