This Week-in-Review September 22nd to September 28th

Crime

Police issue wanted bulletins for five over Main St kidnapping: The Guyana Police Force last Saturday issued wanted bulletins for Aaron Alleyne, Alpha Poole, Wayne Barker, Dwayne Griffith, and Osafo Peters over the abduction yesterday of Joshua David, called ‘Bricks’. The kidnapping was said to have occurred on Main Street. The police said that Alleyne’s last known address is West Ruimveldt. Poole’s last known address is Lot 127 D’Aguiar Park.  Barker’s last known address is Lot `G’ Norton Street, Lodge. Griffith’s last known address is Lot 68 Williams Street, Kitty. Peters’ last known address is Williams Street.

Oil & Gas

Gov’t warns of stiff damages if it wins arbitration with gas to energy contractor: As they head to arbitration with government adamant in giving the Wales Gas-to-Energy (GtE) project contractor, Lindsayca/CH4,  a three-month extension instead of the US$50 million it seeks and a longer delay, the company was last week put on notice that it will be charged stiff liquidated damages if it loses. “There is a delay, now because the site was handed over late… we said what we believe is justified is a three-month extension to the contract. We offered that. The company doesn’t want that. They want more money… they want a bit more money and they want a longer extension. They’ve asked for a longer extension.” Vice President Bharrat Jagdeo yesterday told a press conference held at Freedom House, Georgetown. “We have an arbitration now taking place and if we win the arbitration, they would have only by April to deliver this project. They have given a schedule which shows [project delivery] later in the year – that is what Winston Brassington spoke of – but I did not want the public to think that we agreed to their schedule. We have only given an approval for three-month extension. So, if we win the arbitration and we stick with that schedule then there would be liquidated damages,” he added. Jagdeo calculated the liquidated damages at US$11 million-plus monthly, explaining that from whenever the ruling date for an extension, if any, to the company, government will begin instituting the daily penalty.

PNCR/APNU says will review oil pact, silent on royalties: The PNCR/APNU yesterday released a  list of policies, strategies and principles for the petroleum sector and said it would review the controversial 2016 PSA to maximise benefits to the country but it did not explicitly say it would move for renegotiation of the pact or increased royalties. Both groups were part of the 2016 APNU+AFC government that signed the much reviled Production Sharing Agreement (PSA)  which fixed oil royalties at two percent and spared ExxonMobil and partners from paying taxes to the state. The People’s National Congress Reform (PNCR)/ A Partnership for National Unity (APNU) plan was presented yesterday by Opposition and PNCR Leader, Aubrey Norton. According to a release yesterday, these policies et al, are geared to help govern and manage the oil and gas sector in the best interest of the people of Guyana and in accordance with the rule of law. And in addition to its domestic applications, it aims to help utilise the resources of the oil and gas sector to craft a foreign policy which will facilitate the integration of the sector into a strong national economy to help protect the territorial integrity and sovereignty of the nation. The list began by stating that within 90 days of taking office, the PNCR/ APNU administration will constitute an advisory team of pertinent professionals to advise the government on the upstream, midstream, and downstream planning, development and administration of Guyana’s oil & gas (O&G) sector. The second item on its to-do list concerns the reviewing of the existing drafts of the Petroleum Commission Legislation equipped with professionals to manage the O&G sector from application for licences through auction, exploration, production, sales, refining, and gas utilisation for energy conversion. Thirdly, the release stated the intention to eradicate corruption and unethical conduct by government and contractor officials. One of its strategies, it explained, will be to institute an independent Inspector General’s Office with a 24/7 anonymous hotline to involve the public in reporting any knowledge or appearance of corruption. It assured that this office will be adequately resourced and vested with the authority to conduct independent investigations and, where necessary, recommend prosecutions.

Jordan calls on gov’t to publicise deal with Exxon for GtE pipeline: Former finance minister Winston Jordan has said that with no agreement between the government and ExxonMobil made public or shared with the Parliament on how the pipeline for the more than US$2 billion gas-to-energy (GtE) project is being funded, it seems like the government has taken an illegal loan. “We have no agreement in public of what is the arrangement with ExxonMobil for them fronting the pipeline. All we have is statements, from time to time, from [Project Lead Winston] Brassington and [Vice President Bharrat] Jagdeo. Not even calls by the Parliamentary Economic Committee have been answered. There is just nothing, nothing, nothing! How does one start a project and not formalise agreements?” he asked rhetorically in an interview with the Stabroek News yesterday. “The project is estimated at two-point-something billion dollars. There is the US$1 billion for the pipeline and then the other billion plus comes for the plant from the US EXIM Bank loan of US$640 million and other monies for the works and so on. How can you have such an enormous project and the people don’t know the terms of the agreements?” Jordan said that he had “been talking to lawyers” about the legality of the project funding, but was told that without agreements no judgements or advice could be offered. He stressed much speculation surrounds the project and if the government was transparent it would eliminate a lot of the guessing in the public domain. According to Jordan, Jagdeo had said that ExxonMobil would not have advanced money to undertake the pipeline aspect if they did not think it profitable. Therefore, he questioned if the funding for the pipeline would be taken from Guyana’s oil share by ExxonMobil as payment for the fronted works. If this was the case, Jordan said, it would be illegal. “What the institutional arrangements are with a loan and what the NRF ACT says? I am putting in the public domain that if we know this pipeline is going to belong to the government and Exxon will be financing, well whether de facto or de jure, it means the Government of Guyana has incurred a loan or contingent liability. Contingent liabilities have to be reflected in the books; it must be in the estimates… by law,” he said. Jordan said that if there was no legal document and ExxonMobil and the government had a gentleman’s agreement, this should not be as it is significant sums of taxpayers’ dollars and there are processes for handling these. “When it comes to US$1 billion, you don’t have a gentleman’s agreement. If they are acquiring an asset, how is it paying off for this asset?” he queried.

Accountability

Law-based supplier diversity needed for public procurement – Ramkarran: Columnist Ralph Ramkarran has called for an “entrenched, law-based, programme of supplier diversity” in view of the vast expansion of public procurement. Over the years, groups representing Afro-Guyanese in particular have complained about being excluded from public procurement. Writing in the last Sunday Stabroek, Ramkarran said the level and value of public procurement has expanded to such an extent that considering the country’s ethnic diversity a structured programme to ensure diversity is “rapidly becoming a necessity”. In Guyana’s past, Ramkarran said that supplier diversity was not an issue because State and private procurement were too modest to be of financial consequence to the business community, even though there have always been complaints about corruption. However, the restoration of democracy in 1992 coincided with the resolution of Guyana’s debt crisis in the early 1990s and this resulted in a large inflow of resources from the Inter-American Development Bank, the World Bank and other financial institutions and the restoration of economic growth both of which led to an exponential increase in Government spending in both infrastructure development and procurement of goods and services. This situation, he said,  gave rise to two developments: accusations of corruption and of discrimination. Both were stoutly denied by PPP/C governments but the accusations persisted, he said. Ramkarran said that the demands to reform the procurement system were largely resisted. “The visible signs of corruption eventually became so gross that the Constitution Reform Commission was forced to recommend the establishment of a Procurement Commission in the Constitution, which is not really the place for such a Commission. But governmental resistance to the reform of the procurement system led to the proposal. And even though the Constitution was amended to provide for the Procurement Commission in 2001, the Government resisted the appointment of the Commission. The resistance to the Procurement Commission was so deeply entrenched that the 2011 PPP/C Government sacrificed its life instead of appointing it. The AFC undertook to withdraw its motion of no confidence in 2014 if the Procurement Commission were appointed. The government refused and called elections instead. It was the APNU+AFC government that fulfilled the constitutional responsibility of appointing the Procurement Commission after it came to office in 2015. The procurement system that now exists still allows high volume complaints to be made”, he said.

Guysuco

Stabilising Wales soil for gas project took huge amount of sand, loan: Huge amounts of material have had to be purchased to stabilize the soil at Wales for the over US$1b gas to energy (GtE) project, drawing concerns from the opposition and raising questions as to whether all investors in that area will face similar expenses. Project lead for the Wales, West Bank Demerara  GtE project, Winston Brassington, on Thursday made a presentation to an American Chamber of Commerce event at the Marriott Hotel and disclosed that 1.65 million cubic metres (m3) of sand had to be brought in for soil stabilisation. In addition to the sand, he said that 160,000m3 of loam and 25,000m3 of crusher run had to be used for the stabilisation exercise. This would have been at a significant cost which was not disclosed. The need for such soil stabilising has raised the question as to whether Wales was the appropriate spot for this project taking soil characteristics and other factors into consideration or it was purely a political decision to rejuvenate the area in the aftermath of the closure of the sugar estate there by the previous government. And given that government has announced plans for the former Wales Sugar Estate area to be converted into an industrial zone with many factories there, the opposition is questioning whether companies investing in the zone will also have to dole out millions of US dollars to remediate their lands before construction. “We have been asking and asking what exactly was the issue given that there was disclosure from the company and now [government] that there was soil remediation and stabilisation. What exactly was the problem with the soil? Was the soil type not strong enough for the foundation? Was it pegasse, meaning too loose and had to be stabilised? Is there additional costs for this remediation? It is the public’s money and they should know,” geological engineer and former University of Guyana lecturer, Sherwood Lowe, who is APNU’s lead public relations person told the Sunday Stabroek on Friday. “Soils can be resolved through engineering solutions and it seems that it has been, given that there is currently pile driving at the site. However, we are all in the dark on what really happened,” he added.

Bilateral

Blinken restates US support for Guyana’s territorial integrity, lauds its leadership in CARICOM: In remarks prior to a meeting with President Irfaan Ali at the United States Mission to the United Nations, US Secretary of State Antony Blinken pledged support for Guyana’s territorial integrity and lauded this country’s leadership in CARICOM. According to a statement from the White House, Blinken said “Mr. President, thank you so much for being here today. And thank you even more for the partnership that we’ve had between our countries. And I have very fond memories of my visit and the incredible hospitality of our friends and colleagues in Guyana. “And we see this partnership in what we’re doing together. We see it in the work that we’re doing together not only between us but also, for example, in Haiti. Guyana’s leadership in CARICOM has been critical. And together, I hope we’ll continue to support the Multinational Security Support mission for Haiti, to help our friends there deal with the gangs, deal with the violence, and get on a strong democratic track. And we’re grateful for the partnership between Guyana and the United States in supporting those efforts. “We also stand strongly for the territorial integrity in Guyana, and we’ll continue to stand with you on that and on so many other things. But thank you for being with us today”. The statement said that Ali made the following response: “Thank you very much. It’s an honour to be here again to celebrate our strong partnership, but also to reiterate our commitment, our shared values in the region – the rule of law, democracies, ensuring that we do all we can for the people of Haiti, support for a multinational force, but more importantly, ensuring that the people of Haiti can return to normalcy. The humanitarian effort that is required here is of utmost importance to us and on a bilateral basis a strong partnership continues to be built between Guyana and the United States – expanded trade, great collaboration and cooperation in terms of security. And we are committed to the interests of all of us here in the region. And we thank the United States for the very strong support on sovereignty and territorial integrity, and we look forward to expanding and working to ensure the partnership and to grow and strengthen it”.

Accountability

Gov’t defends Schoonord-to-Crane Highway awards: Government last week defended the contract awards for the construction of the $11.8 billion Schoonord-to-Crane Highway insisting that the National Procurement and Tender Administration Board (NPTAB) followed all legal procurement steps. It disclosed that only eight of the 32 bids were responsive. Questions have been raised about the decisions being made by the evaluation committees of the NPTAB. “The NPTAB accepted the recommendations made by the Evaluators based on their representations regarding the respective contractors’ capacity to execute the individual lots in a timely manner, given the urgency within which the project was required to be completed,” a  release from the Ministry of Finance stated. “The NPTAB remains committed to ensuring an open, fair, competitive, and transparent public procurement process,” it added.  There was no word on if any of the contractors had faced any liquidated damages penalties. The road project contract which was inked in September, 2022, for just over $11.8 billion had been awarded to eight contractors via the national procurement process. The winning contractors were VR Construction Inc, Avinash Contracting & Scrap Metal Inc, L’Heureuse Construction and Services Inc, GuyAmerica Construction Inc, AJM Enterprise, Vals Construction, Puran Bros Disposal Inc, and JS Guyana Inc. The release followed a call from Alliance for Change Leader Nigel Hughes that Vice President Bharrat Jagdeo should provide tangible evidence of adherence to the Public Procurement Act regarding the Schoonord Highway construction project, after Jagdeo held a procurement forum issuing a stern warning and pointing out penalties for non-adherence.

Copyrights

Jackie Jaxx, D’Ivan file copyright infringement lawsuit in US against One Communications: Guyanese musicians Jackie Hanover known as Jackie Jaxx, and Ivan Harry performing as D’Ivan, have filed a copyright infringement lawsuit in the US Eastern District Court, New York against telecommunications giant One Communications (Guyana) Inc and singer Tennicia De Freitas, known as Nekeita. According to a joint press release from Hanover and Harry, the lawsuit was filed last Friday. It alleges that the defendants used their songs “Guyana” and “Oh Guyana” without permission during a rebranding event for One communications on September 6, 2024. The plaintiffs claim that their musical works were broadcast and commercially exploited without consent, leading to significant profits for One Communications at their expense. The release said that the lawsuit was filed after efforts to resolve the dispute with One Communications failed. In a pre-action letter to One Communications, shared on Hanover’s Facebook page, attorney Vivian Williams outlined key allegations, including that One Communications solicited De Freitas to perform “Guyana” without the knowledge or consent of his clients. The letter asserted that the unauthorised performance aimed to enhance One Communications’ brand and economic position while broadcasting the performance across multiple platforms, reaching audiences in the US particularly in Brooklyn and Queens. According to the lawyer’s letter, his clients were willing to accept a monetary settlement of US$250,000 as well as a commitment from One Communications to refrain from any further infringements of their intellectual property rights. In addition, they asked that One Communications commit to work on advocacy and awareness of intellectual property rights in Guyana for a year and a public apology as well as similar commitments from DeFreitas. The letter, dated September 12, warned that legal proceedings would be filed if a settlement was not finalised within ten days.

Crime

Police on hunt for suspect in Leonora stabbing deaths: The police are currently on the hunt for a suspect in connection with the murder of two Stewartville residents who were stabbed reportedly by two persons during a scuffle early last Saturday morning in the vicinity of District Club located at Leonora, West Coast Demerara. Dead is Mohamed Kalameeden Nasir, a 30-year-old carpenter of Lot 1 Stewartville, West Coast Demerara, and Arvinda Roopram, a 25-year-old construction worker of Lot 52 Stewartville, West Coast Demerara. The other suspect, the police say, is currently hospitalised and is in critical condition. Enquiries have revealed that about 02.50 hours, Nasir, Roopram, and the two suspects had a scuffle that ensued from a heated argument. As a result Roopram suffered several stab wounds about his body, while Nasir sustained one stab wound to his upper abdomen. Meanwhile, one suspect, a 28-year-old security guard, sustained one stab wound to his upper abdomen, while the second suspect fled the scene. Nasir and Roopram were taken to the Leonora Cottage Hospital by ranks of the Anti-Crime Patrol and pronounced dead on arrival. The security guard was also taken to the Leonora Cottage Hospital, then transferred to the West Demerara Regional Hospital, where he remains under police guard. His condition is regard as critical. So far, several persons have been questioned and police have recovered a black-handled ‘Rambo’ knife, as the investigation continues.