Attorney General Anil Nandlall has lodged a claim in the High Court seeking to overturn the controversial sale of river frontage to BK Marine which he said should have been valued at $5b but was acquired for a fraction of that figure.
The defendants have been named as BK Marine Inc, former Minister of Finance Winston Jordan, former Chief Executive Officer (ag) of National Industrial and Commercial Investments Limited (NICIL), Colvin Heath-London, NICIL and the Registrar of Deeds.
Nandlall wants a declaration that the Agreement of Sale dated the 23rd of October, 2017 between BK Marine and NICIL for the property situate at Mudlots 1 and 2, Lot F of Mudlot 3 and Lots A, B and D, North Cummingsburg, Georgetown held under Transport No. 634 of 2020 dated the 21st day of July, 2020 is illegal, unlawful, null, void, repugnant and contrary to Public Policy;
Consequently, he is seeking a declaration that Transport No. 634 of 2020 dated the 21st day of July, 2020 was obtained unlawfully.
He is also praying for an Order directing the Registrar of Deeds to set aside Transport No. 634 of 2020 dated the 21st day of July, 2020 on the ground that it was obtained unlawfully or alternatively, an Order setting aside Transport No. 634 as being obtained by an illegal instrumentality.
Further, Nandlall is seeking a declaration that the Vesting Order No. 50 of 2020 made by Jordan and advertised in the Official Gazette on the 28th March, 2020, is unlawful, null, void and contrary to Public Policy.
The Attorney General is also seeking a declaration that the Vesting Order No. 50 of 2020 made by Jordan under the Public Corporations Act and advertised in the Official Gazette on the 28th March, 2020, is null and void and incapable of effecting Transfer of Title of the said properties to BK Marine.
Nandlall also wants the court to declare that BK Marine Inc has been “unjustly enriched” in the sum of approximately $5B which he averred is the true representation of the value of the property in question.
Nandlall is also seeking an order for restitution to the state of the property and for BK Marine do deliver up possession of it.
Damages in excess of $100M are also being sought against Jordan, Heath-London and NICIL for alleged loss and damage suffered.
Nandlall is also seeking damages in excess of $100m from the same defendants for loss and damages suffered as a result of alleged conspiracy and/or breach of the duty of care.
Damages are also being sought in excess of $100 against Jordan for loss and damage suffered as a result of the alleged breach of fiduciary duty owed to the State of Guyana. A number of other orders were sought by Nandlall.
In April last year, NICIL had defended the deal.
It said that the Water Street property sold to BK International days before the March 2nd general election had been won through a bid by the company over a decade ago but was subsequently tied up in a court battle and resolved since 2017
NICIL’s claims were backed up by former Privatisation Board member Lincoln Lewis, who told Stabroek News, “What the coalition government has done is complete what the PPP government started – but for whatever reason failed to do, in moving to give legal transfer to the owner.”
NICIL is now under new management following the March 2nd 2020 elections.
NICIL had said last year that it became the owner of Mud Lots 1 and 2, Cummingsburg, Georgetown via Transport No. 530 of 1947; Lot ‘F’, a portion of Mud Lot 3 three; and Lots ‘A’, ‘B’ and ‘D’ portions of North Cummingsburg, Georgetown through Vesting Order No. 43 of 2003 and 42 of 2003 .
“On December 4, 2006, a lease agreement was entered into between NICIL and BK Inc for a period of 20 years with an option to purchase anytime during the lease period. The purchase price was set at one hundred and ten million Guyana dollars. The option to purchase was contingent on the Lessee obtaining approval from the Mayor and City Council for its intended construction works. This Agreement was signed by former Head of NICIL, Winston Brassington and BK Inc. and witnessed by Marcia Nadir Sharma,” NICIL explained in the press release last April.
“On November 19, 2009, BK Inc. exercised its option to purchase and ceased paying rent. NICIL rejected the offer to purchase. In June 2013, NICIL began legal proceedings against BK Inc. to recover the outstanding rent and the accrued interest. This matter engaged the attention of the Court from 2013 to 2017. Sometime during 2017, BK Inc. submitted an amended offer. In August 2017, the matter was set down by the court pending settlement. In October 2017, NICIL made a counter offer to BK Inc. that included the original purchase price, all outstanding rent, and 50% of the accrued interest. BK Inc. accepted the counter offer,” it added.
In October 2019, NICIL said that it received approval, following which the Vesting Order was prepared, signed and gazetted.”
