The company of controversial Chinese businessman, Su Zhirong, who featured prominently in the explosive VICE News programme on Sunday is one of the 12 that sealed Memoranda of Understanding (MoU) to build hotels here.
This was disclosed on Tuesday by Vice President Bharrat Jagdeo and will raise more questions about Su’s business dealing across a number of sectors in the country. There had been no previous announcement of a MoU in favour of Su. It is unclear what will now happen with Su’s MoU.
Speaking at a press conference where he said that the VICE programme had vindicated him in relation to bribery claims made by Su, Jagdeo disclosed that the government is working towards amending legislation which will increase the number of casinos permitted in any one region. Currently a maximum of three casinos per region is permitted. The government is yet to direct the Attorney General’s Chambers on drafting the amendment, Jagdeo told the press conference.
The proposed hotels and three others presently under construction will see a total of over 1,200 rooms. Only three hotels of this type are permitted per region, according to the extant legislation.
According to Jagdeo, 12 businesses were shortlisted from 18 that responded to a Call for Proposals [CFP] from the Ministry of Tourism [in November 2020] to build hotels here. With seven new hotels expected to be constructed in Guyana this year, Jagdeo told the press conference that, “All of the other MoUs we have, we now have to amend the law to do that.”
The seven hotels to be constructed this year are: Four Points under Marriott at New Access Road, Houston with 150 rooms; Hyatt Place at Providence with 125 rooms; AC Marriott at Ogle with 150 rooms; Pasha Global at Liliendaal with 200 rooms; Best Western to be located at Liliendaal Seafront with 120 rooms; along with King’s Hotel with 40 rooms and Herdmanston Lodge with 60 rooms, both located in Georgetown. Three other hotels, Aiden Hotel with 150 rooms and SleepIn Hotel on Brickdam with 195 rooms located also in the city and Marriott Courtyard at the Cheddi Jagan International Airport, Timehri are already in the construction phase. Jagdeo said that the template MoU signed with the twelve companies grants them a casino licence once the stated criteria are met. The construction of these hotels will put the accommodation industry on stream to meet an expected 2,000-room demand by 2025.
The Gambling Prevention (Amendment) Act of 2006, which is an amendment of the Gambling Prevention Act Chapter 9:02 of 1902, provides for a Gaming Authority and states that only three casino licences may be distributed in each of Guyana’s 10 regions. According to the Act, licences may also be issued to a new hotel or resort complex “with a minimum of 150 rooms” and holding a minimum rating prescribed by regulations. Amendment Act, No 30 of 2006, which is arranged in four sections, makes provision for the insertion of seven more sections – Sections 27 to 33 in the principal act. Section 27 says that no owner or occupier of any place shall permit the place to be operated as a casino otherwise than in accordance with a casino premises licence and Section 28 says that no person shall operate a casino otherwise than in accordance with a casino operator’s licence. Section 29 of the Act says that subject to Sections 27 to 33 and the casino regulations, the Gaming Authority may issue to any person, subject to any condition it thinks fit, a casino premises licence authorizing any place to be operated as a casino and a casino operator’s licence authorising the person to operate a casino. The same section says that no more than three casino premises licences may be issued in respect of any one of the ten administrative regions, and no casino premises licence may be issued except for a new hotel or resort complex with a minimum of 150 rooms allocated for accommodation and holding a minimum rating prescribed by regulations.
The Minister of Home Affairs is responsible for issuing the regulations to establish the gaming authority and to vest it with the necessary powers to carry out its duties and functions, the Act states.
Region Four has already met its casino maximum since there is one at the Princess Hotel, one at the SleepIn Hotel and one set aside under the contract with the Marriott Hotel.
