This Week-in-Review October 27th to November 1st

Accountability

Enact law to prevent public servants, MPs from accepting gifts – Ramkarran: In view of the revelation by Assistant Commissioner of Police Calvin Brutus that he received over $46 million in wedding and Christ-mas presents, former speaker of the National Assembly Ralph Ramkarran last week recommended that there should be a law that precludes government em-ployees and parliamentarians from accepting gifts. “… There has to be [law] because it will continue. In modern societies they can’t even take a plane ticket. I am not saying we should mirror that, but there have to be rules and enforcement of those,” he told Stabroek News. Ramkaran pointed to the United Kingdom’s Gift and Hospitality Policy. He said that this outlines its Civil Service Code which states that civil servants must not accept gifts or hospitality or receive other benefits from anyone which might reasonably be seen to compromise their personal judgement or integrity. “… Public servants across the board must follow the rules and not engage in private business and [there is] a rule against the acceptance of gifts by public servants including parliamentarians that is public and has an enforcement mechanism that is subject to public scrutiny,” he said. Here, Ramkarran said, while there is a Public Service Rules Book, Police Standing Orders and the Police Discipline Act there is no enforcement. Winston Felix, a former commissioner of police, also said that there are guidelines. He, too, pointed to the Standing Orders and Police Discipline Act but noted that the culture here is one where police officers accept gifts and do not report them. “It is explicit in not collecting gifts, but you know here what happens. Police and everyone collect and I keep meh mouth shut and you keep you mouth shut,” he said. In his weekly Conversa-tion Tree column, Ramkaran wrote about his father, a government minister in both 1957 and 1961, who had received Christmas gifts which he returned. “On this latter occasion I distinctly recall that in December, 1961, a large number of Christmas gifts were delivered to our home. I vaguely remember the decision that the gifts were not opened. They were stored in our verandah. Sometime later, but before Christmas, the gifts were returned unopened. Again vaguely, I recall discussion to the effect that government ministers were not allowed to receive gifts,” he wrote. “The PPP built a legacy of ethical administration during its two governments from 1957 to 1964. Of course, there were accusations of corruption, but these were few and far between, were never proved and never gained traction. The PPP’s history of clean government together with the modest lifestyle of PPP leaders between 1964 and 1992, as opposed to that of opposing politicians, entrenched modesty and incorruptibility in administration as part of its character.”

GECOM

PNCR flays GECOM Chair on hiring of voter education, logistics managers: The People’s National Congress Reform (PNCR) last week launched an attack on the Chairperson of the Guyana Elections Commission (GECOM), Claudette Singh over her decision in relation to two appointments. The party alleged  that her recent vote in favour  of the hiring of a Civic and Voter Education Manager and a Logistics Manager showed that she is in the orbit of the ruling People’s Progressive Party (PPP). There was no response from GECOM yesterday to the PNCR statement. The PNCR criticized Singh for agreeing to fill these critical positions with candidates  it described as having “inferior qualifications” compared to other applicants. The statement argued that these selections demonstrate Singh’s abandonment of her duties, stating, “Chairperson Claudette Singh remains a pawn of the PPP …” The party’s statement highlighted that the recent appointments were made “in concert with the three PPP-nominated commissioners”. “This does not provide a proper basis for the conduct of elections that are fair, credible, and can inspire trust in the voting population,” the party asserted, calling again for her resignation and urging that a new chairperson be appointed. In response to the PNCR’s allegations, PPP-nominated Commissioner Sase Gunraj yesterday pushed back against the criticisms, stating, “It is rather ironic that the PNCR has launched an attack on the Chairman of GECOM in relation to her recent vote to appoint a new Civic and Voter Education Manager and a new Logistics Manager…. Differences of opinion on suitable candidates to fill vacancies at the Commission is not new.” He emphasized, while speaking with Stabroek News that the selections of Delon Clarke and Nardeo Persaud, who have both served in various capacities at GECOM, were based on their qualifications and experience.

Banking

Demerara Bank’s after-tax profit up by 37% this year: Demerara Bank Limited’s (DBL) profit after tax for the year 2024 zoomed up by 37% compared to last year’s figure. According to the Bank’s financials published in today’s Stabroek News, profit after tax rose from $4.08b last year to $5.59b for the year ended September 30, 2024. In his review, Bank Chairman Komal Samaroo noted that DBL will be celebrating 30 years in business this year. “This year has been truly exceptional for our bank, marked by outstanding financial achievements that have set new benchmarks in our history. Our remarkable performance reflects the dedicated efforts of the entire team and sound strategic decisions that have driven us to this pivotal milestone. There was a 19% increase in pre-tax profits and Samaroo said that deposits appreciated by 25% from $139b to $174b. Loans and advances grew by 34% from $71.3b to $95.3b. “Despite this robust expansion in lending, the bank has maintained its exemplary record of zero non-performing loans. While banking sector advances grew by $63.3 billion over the last 12 months, I am pleased to report that Demerara Bank contributed $24 billion or 38% of that growth”, Samaroo said. He added that the Board of Directors has recommended a final dividend of $2.40 per share which if approved at the Annual General Meeting and when combined with the interim dividend of $0.60 will result in total dividends of $3 per share. Interest income from loans and advances amounted to $6.33b this year compared to $5.17b last year. Income from investments dropped from $1.63b last year to $871m. Net credit impairment rose from $825m last year to $1.66b this year. Non-interest expenses grew from $1.94b last year to $2.63b this year. Taxation declined from $1.86b last year to  $1.47b this year. Earnings per share in dollars rose from 9.03 last year to 12.34 this year.

Oil & Gas

Govt moving to legally restrict evasion of local content, tax fiats in oil sector: Some oil companies are employing foreign employees and rotating them in order to evade paying taxes and bypass local content requirements here, the government said and plans are on stream to implement legislation to stop this. “They are bringing in rotating workers, a long list of them; foreigners. They are getting work permits for them and we believe they are doing it for two purposes. One is to bypass the Income Tax Act [which says] … you have to be resident in Guyana for six months before you are eligible to pay income tax. So they’re rotating them for six months and then sending them back. They’re bypassing …their eligibility for taxation. Sometimes they bring them back the following year, or new people,” Vice President Bharrat Jagdeo told a press conference on October 30th  . The Vice President said the other reason was to bypass the local content requirements which speak to having only 25% of the total workforce as foreigners and in management positions. “I have seen evidence that is available to the local content secretariat where they have a long list of companies who are rotating workers and a lot of them are in management. Now the law says to qualify for a local content certificate you have to… limit your management to 25%. So 75% of your management has to be Guyanese. In the first couple of years we gave some waivers because some companies had contracts with EM and the change out would have taken some time. But this has become a loophole for some of them to bypass the system,” he explained. However, the government is moving to take strict action with legislation and those found breaking the law will face the consequences which could mean losing their Local Content Certificate, he said. “I spoke with the Commissioner and we are now drafting legislation that will cover that loophole, so that people who come to work in the oil and gas companies can’t use this creative mechanism to evade taxes,” Jagdeo said. The Local Content Act was passed in the National Assembly and assented to by President Irfaan Ali in December 2021. To deliver on its legislative target, it “puts in place regulatory mechanisms to implement, investigate, supervise, coordinate, monitor, and evaluate participation in local content in Guyana”.

Sugar

GAWU concerned at sugar output, blisters management: The main sugar union GAWU last week expressed deep concern over poor production at GuySuCo and launched a stinging attack on the management of the corporation. The Guyana Agricultural and General Workers Union (GAWU) statement came just days after Stabroek News had reported on dismal sugar production figures despite billions of dollars being poured into the industry, the purchase of machinery and the hiring of experts. As the principal bargaining agent in the sugar industry, GAWU said yesterday that it is “deeply concerned over the current trend of sugar production”. As of October 26, 2024, it said that the Guyana Sugar Corporation Inc (GuySuCo) produced 24,711 tonnes of sugar, representing just 39 per cent of its 63,276-tonne target. As much as 60 per cent of the cropping period has been exhausted, and GAWU said it is apprehensive that the deficit cannot be closed in the remaining cropping weeks. “From our perspective, the industry’s sad situation cannot be delinked from the management of its cultivation and agricultural operations”, it argued. Before the commencement of the crop, the union said it drew GuySuCo’s attention to several important issues that required intervention. “It appears that our concerns were brushed aside. Recently, we have expressed concern about the production rate and trajectory. It seems that those charged with agricultural management in the industry have, for reason/s best known to themselves, chosen to turn a Nelson’s Eye”, the union lamented.  Given the conducive weather for mechanised sugar operations over the past few weeks, GAWU said it is puzzled that daily production levels remained constrained.

Investment

Uncertainty hits call centre industry: The business process outsourcing (BPO) sector in Guyana is facing turmoil. Midas BPO has ceased operations, and itel CX (customer experience, another call centre venture, has announced its impending closure, leaving hundreds of employees in uncertainty. Midas, which opened in Linden less than four years ago, abruptly closed its doors, a stark turn for a company that had celebrated hiring around 95 local workers during its first anniversary in 2022. Despite ambitious plans to expand its workforce to 150, the company’s operations proved unsustainable, reflecting broader challenges in the local BPO market. Recently, itel CX, a Jamaica headquartered call centre at Camp and Robb streets, announced to its employees that it would be ending operations. The closure will occur in phases, with all operations expected to conclude by November 30, and the official termination of itel’s Guyana operations set for December 31. The decision was attributed to increased operational expenses and difficulties in acquiring new clients. In a memo dated September 6, itel reassured employees that severance payments and other benefits would be processed before the final employment date. These closures raise serious concerns about the viability of the BPO sector in Guyana, which the government has been keen to expand. While itel described Guyana as a “gem,” it highlighted the rising costs of doing business and the struggle to attract and retain qualified talent, which hampered its ability to maintain contracts with Fortune 500 clients. The loss of jobs at both Midas and itel pose a significant challenge to the government’s optimistic outlook for the sector.

Economics

Agricola small businesses oppose impending opening of Chinese supermarket: Local retail business owners in Agricola, East Bank Demerara have raised a NIMBY (Not In My Back Yard) protest against a Chinese supermarket, citing impending challenges to their livelihoods as community support may wane and their businesses face closure. (NIMBY is a colloquialism, originating in the US, signifying one’s opposition to the locating of something considered undesirable in one’s neighbourhood.) “We been here for years, the Chinese coming here will affect the mom-and-pop businesses,” one shop owner known as Brother Dennis said, reflecting the collective anxiety shared among the group. “People in this community could come to me and say, ‘I don’t have enough money,’ and I could help them out. They can’t do that with the Chinese,” he also told Stabroek News during a recent visit to the community. He noted that the tight-knit relationships built within the community fostered an environment of support that larger businesses could not replicate. Another shop owner, who requested to remain anonymous, highlighted likely economic implications and expressed concern that Chinese businesses did not reinvest in the local economy. “They don’t give back to the community. All the money they get doesn’t go back into the community,” she argued. This sentiment resonated with others, who criticised the lack of community engagement and transparency from incoming Chinese establishments. Concerns also extended to pricing strategies. “They have one price on the shelf, but when you go to buy, it’s more than what’s listed,” a community member who was passing by stated. Further, the resident questioned their compliance with local tax regulations thus: “They don’t even give receipts; how are they paying any VAT?”

Environmental

Crane seepage is some type of hydroxide – EPA preliminary findings: The recent mystery seepage through tiles in several homes at Crane, West Coast Demerara is likely to be some type of hydroxide based on the EPA’s preliminary findings and hydrocarbons have been ruled out. The revelation was made during an interview with Stabroek News last week, which included Executive Director of the Environmental Protection Agency (EPA), Kemraj Parsram; Senior Lecturer at the University of Guyana Chemistry Department and Chemist Patrick Ketwaru; and Head of the Emergency Response Team Joel Gravesande at the EPA’s head office in Georgetown. Over the last month, several Crane residents have  been in limbo after a substance oozed up under tiles in their houses. During the interview yesterday, Parsram stated, “It is nothing of significant concern. If there was, then we would’ve told them to evacuate, but we told them to take precautions, ventilate, and avoid the area until we can give further directions. Our air quality test revealed that the air quality is all within the World Health Organization standards for air quality. There is nothing of significant concern, whether it is sulfur dioxide, volatile organic compounds beyond what is baseline or normal. In fact, it was almost (undetectable). It is not oil, it is not gas. From the observation and the test, it is not petroleum activity, it is not radon gas. It is clearly moisture coming up and moisture interacting with the tile, and the type of tile it is a clay-based tile. Clay and moisture resulted in this chemistry.” The EPA press release said that “Analysis of the samples by Forensic Laboratory and the Pesticides and Toxic Chemicals Control Board (PTCCB) confirmed that no petroleum-based hydrocarbons were found in the samples. Physical observations and expert analysis also indicated that the substance found on the tiles was not petroleum-based.

Crime

Twelve-year-old dies after stabbed by friend, 11: A 12-year-old student of Dolphin Secondary School died on October 29th after being stabbed by a friend at Cummings Park, ‘E’ Field, Sophia, Georgetown.Dead is Kareem Durant of Lot 1338 Cummings Park, ‘E’ Field, Sophia. The 11-year-old suspect has been arrested. Inquiries revealed that Durant and the suspect were friends who would usually play together in the community. On Tuesday night, the suspect was sitting on a pile of PVC pipes which are stored on the parapet at the side of his home, when the victim went up to him and pushed him off of the pipes, which caused him to fall to the ground. The suspect then got up and ran inside his home and informed his older brother, who then approached the victim calling him in the presence of the suspect and enquired about the issue they had earlier.

An argument ensued and the victim left and returned in the company of another male who was armed with a pair of scissors, approached the older brother and stabbed him in the lower back. The suspect saw what happened, pulled a knife from his waist and stabbed the victim in the chest. Durant ran and collapsed on the parapet in front of his home. He was picked up by his older brother and rushed to George-town Public Hospital (GPH) where he was pronounced dead on arrival.

Victoria man fatally stabbed in false name row: The use of a false name resulted in the death of a 47-year-old consultant with the Ministry of Health who succumbed to a stabbing wound last Sunday night at the Georgetown Public Hospital. Dead is Andre Wilson aka ‘Puchie’ of 388 Middle Walk, Victoria, East Coast Demerara (ECD). The incident occurred on October 24 about 17:00 at a shop located at Victoria South, ECD. Police yesterday said that the suspect, a taxi driver is in custody pending a murder charge. Andre’s friend, Clive Lawrence, a US-based Guyanese who’s in Guyana vacationing, told  Stabroek News that last Thursday afternoon he, Wilson and some other friends were hanging out at a shop in the street when he saw the suspect, who everyone knows since childhood. The suspect was driving past them in his car, and Lawrence called out for his friend by the name, ‘Dawg Wind’. Lawrence related that for years everyone in the community called the suspect by that name.  However, the suspect continue to drive and about 20 minutes later, Lawrence relayed that the suspect drove back and approached him and enquired why he had called him the false name. Lawrence said he immediately apologized to him in order to calm the suspect down as it was obvious the man was irate.  At that moment, Lawrence sad that Wilson interjected and asked the suspect, “Why are you acting like that? Why are you trying to beat Clive? `Dawg Wind’ is the name everyone knows you by, why are you trying to beat down Clive?”  Wilson and the suspect then got into an argument over the issue. Lawrence added that, shortly after that a man who was driving his car on the road called for `Dawg Wind’ and everyone started laughing. One person remarked “You trying to beat Clive and that man just called you, `Dawg Wind’”. Lawrence further said that while Wilson was laughing, the suspect rushed to his car, took out his knife, returned to them and stabbed Wilson in the right side of his abdomen. Andre jumped in the trench and the suspect got into his car and drove off. Friends took Wilson out of the trench and rushed him to the Nabaclis Hospital from where the police further rushed him to the Georgetown Public Hospital. Lawrence said he received a call early yesterday morning that Wilson had died.

Police probing armed robbery in Deep South Rupununi, hostages rescued: Police are investigating an alleged robbery under arms and abduction committed on four Guyanese and six Brazilians,  allegedly by  unidentifiable males, all wearing masks and carrying firearms. The incident occurred at about 11:00 hrs On November 2nd at the GGMC’s  Bush Mouth Sub-station at Marudi in the Deep South Rupununi in Region Nine, a release from the police said. A Joint Services team on the ground pursued the suspects who abandoned their vehicle with the persons abducted, all of whom were rescued unharmed, the release said.

In the court

Sarah Browne and Vikash Ramkissoon can serve as parliamentary secretaries –CCJ rules: The Caribbean Court of Justice (CCJ) last week allowed the appeal of Sarah Browne and Vikash Ramkissoon and vacated the ruling by the Guyana Court of Appeal that their appointment as parliamentary secretaries was not valid. The CCJ found that the interpretation of the case involving Desmond Morian v Attorney General, on which the original decision relied, produced “untenable consequences”. The decision was read by Justice Winston Anderson who said that it was unanimous and authored by the CCJ’s President, Justice  Adrian Saunders. Lawyers for Ramkissoon and Browne had argued before the Trinidad-based court of last resort that the local appellate court got it wrong in ousting them from the National Assembly for being unlawful members, since their names, while on their party’s list, were not among the 33 names extracted to take up seats in the National Assembly. Browne’s and Ramkissoon’s contention is that they had been duly sworn in pursuant to Article 186(3) as non-voting members since at the time of their appointments, they were not already elected members of the Assembly. The Guyana Court of Appeal had ruled that since their names were on the party list, but not among the 33 extracted to take up seats in the Assembly, they could not qualify as being non-voting members of the Assembly as parliamentary secretaries. In its judgment of July 25th last, the Guyana Court of Appeal found that the appellants were elected members of the National Assembly within the meaning of Article 186 of the Constitution by virtue of the fact that they were on the list, even though not extracted therefrom and were accordingly not eligible to be non-voting members of the House by virtue of their appointments as parliamentary secretaries. The court went on to hold that since their appointments as parliamentary secretaries came about while they were on a successful list, their appointments were unlawful. The Court premised its ruling on the case of Desmond Morian v Attorney General. Chief Justice (ag) Roxane George SC had relied on that case forming precedent by which she declared she was bound, when she adjudicated the challenge to Browne and Ramkissoon’s appointments. The Court of Appeal later affirmed her ruling.

New magistrate to preside over elections fraud trial: The 2020 elections fraud trial of former staff members of the Guyana Elections Commission (GECOM) is set to restart under Acting Chief Magistrate Faith McGusty. Previously overseen by Magistrate Leron Daly, who has been on extended sick leave, the trial will now begin anew with Magistrate McGusty presiding. Slated to appear before the court are former Chief Election Officer, Keith Lowenfield; former District Four Returning Officer, Clairmont Mingo; former Deputy Chief Election Officer, Roxanne Myers, Volda Lawrence, Sheffern February, Denise Bobb-Cummings, Michelle Miller, Enrique Livan and Carol Smith-Joseph. They are all are charged with conspiracy to defraud the electors of Guyana by declaring a false account of votes cast for the general election which was held on March 2, 2020. Last week, Prosecutor Latchmi Rahamat requested a case management conference to allow Magistrate McGusty to review the volume of charges brought against each defendant. Although Rahamat sought to have this on Monday, November 4, defence counsel cited scheduling conflicts, leading to an agreement for the conference to be held on Wednesday, November 6. The goal is to expedite the proceedings following the conference. The magistrate inquired about the potential use of recording devices during the trial to ensure accuracy, citing previous issues with evidence presentation. And defence attorney, Eusi Anderson, raised concerns over how evidence was handled in prior sessions, to which Magistrate McGusty responded that any hearsay evidence would be excluded from consideration.