Former Minister of Finance, Winston Jordan has expressed shock at the government’s recent invitation for a lottery services provider as up to when he left office in 2020, the Canadian Bank Note-owned Guyana Lottery Company, was well positioned to meet the target set out in the 10-year contract it had signed with his government.
“We had signed with them a five-year with an option for a second five-year. We had specified the conditions of the second five years… that is, we would have had to get royalties of a certain amount, plus they would have committed to a national project of $50 million…,” Jordan told Stabroek News yesterday.
“I thought they would have been given the second five years and I was surprised to see that we were going out for tenders. It was kind of automatic if they achieved the target and I believe that they had been well in advance…,” he added.
According to Jordan, he had visited the company in January of 2020 when he was in Ottawa and they had looked at financials and targets. He said from what was shown to him, the company was set to surpass its targets. “ I remember going there in January of 2020; in Ottawa; and we were going over and punching the numbers and so forth, and they were well on their way to achieving the targets set in the contract, which would have allowed them to exercise their right for the second contract,” he contended.
The former Minister of Finance said that as part of its contract agreement, the company donated to the people of this country, an upgraded and extended maternity wing at the Georgetown Public Hospital.
“In the first case, the maternity wing at the GPHC, they would have built that and provided the furniture and everything.”
He also spoke of the base of the Indian monument at Palmyra in Berbice, which would have also been a contribution by the company.
Last month, government issued a Request for Proposals (RFP) for prospective companies desirous of providing lottery products and services to provide a financial projection for five years showing the estimated revenue government will receive from the proceeds, among a number of other requirements.
This newspaper had been told that the contract with Canadian Bank Note had expired and it was for this reason the advertisement was placed. Jordan however explained that only the first five years of the 10-year contract would have expired.
This newspaper reached out to the Canadian Bank Note-owned Guyana Lottery Company and its representative who identified herself as Donielle Barnes responded that the company would not be commenting. “We have no comments on that,” she said.
Government’s tender documents for the lotto contract , which was seen by this newspaper, gives an introduction, tender preparation costs, and takes the prospective applicant through general terms and conditions, detailing instructions of how to submit tenders and a sample of how the bids will be evaluated. “Tenderers wishing to be considered are required to complete all sections of this document according to these instructions and submit a proposal that describes their capability to deliver, install, test, customize, commission, operate and support their solution to meet Government’s anticipated service launch date and maintenance thereafter.” The document further requires that the technical, operational and any other support requirements, as well as the terms and conditions under which the proposed lottery games will be offered by the tenderers, must also be described in the proposal.
Of the business need for the service, the document states that the Government of Guyana is seeking a “full-service lottery gaming solutions service provider with: (a) the ability to offer multiple games through various channels: retail, mobile retail, online; (b) the capacity to offer: commercial services, marketing, operation of multiple sales channels, and access to a suitable platform; (c) a proven track record of: (i) compliance with government fees and payments; and, (ii) growing government fees, players shares, and allowing regulators transparent access to system information: (d) membership in the internationally recognized lottery and gaming body and experience operating in a similar market; (e) obtain retailer terminals, supporting systems, and services that are operationally sound, incorporate the highest level of integrity and security, and minimize risk for the Lottery…” The successful bidder also must, “(g) obtain a system that is sufficiently flexible to meet the Lottery’s evolving requirements; (h) ensure that all proposed systems and services are ready to be operational by the agreed schedule; and, i) maximize net lottery proceeds for the Government of Guyana.”
Gamblers must also have the opportunity to play online, among other channels. “The Lottery gaming service provider or gaming service provider will be required to offer a full-service Lottery solution exclusively to domestic players through various channels in licensed premises, mobile sales, and online (via website or software application). The service provider will also be required to offer multiple number lottery-type games, including but not limited to one number, two number, three number games, jackpot type games, and other games approved by Government of Guyana.”
Under the late President, Cheddi Jagan, the Government of Guyana and Canadian Bank Note (CBN) in 1995 inked an agreement for the establishment of a national lottery here, under the Government Lotteries Act. Under this agreement, CBN had to pay licence fees equivalent to 24% of gross revenue annually, while government undertook not to permit another lottery of similar scope during the life of the agreement. Then in 1996, the Guyana Lotteries Commission was established and by cabinet’s decision it managed the receivable licence fees and ensured that amounts spent were within the national sector and in accordance with the guidelines for access to the lottery funding.
Over the years, proceeds received from Lotto games by the Lotteries Commission were used to make payments approved by Cabinet. The proceeds were retained in a special bank account and no amounts were ever paid over to the Consolidated Fund. The Auditor General has been critical of this policy, and has said multiple times that it [proceeds not being paid into the Consolidated Fund] is a violation of Section 43 of the Fiscal Management and Accountability Act. That Section of the Act states, “except as otherwise provided in this Act or in any other law, at the end of each fiscal year, any unexpended balance or public moneys issued out of the Consolidated Fund shall be returned and surrendered to the Consolidated Fund.”
‘Expanded’
Jordan said that while he could not at the time remember how much exactly had been contributed from fund over the years, it would be reflected in the Auditor General’s report over the respective periods, Nonetheless, he says that it was a significant sum and that more monies were expected as the lotto company was poised to introduce new games.
“Because they were given permission to expand and introduce new games and so on, the revenue intake to government would have expanded. The AG report would state how much have been garnered,” Jordan pointed out.
He explained that “the monies in the lotto fund are spent on projects identified and then towards the end of the year, a sizeable sum of the balance is transferred to the consolidated fund.”
