-CH&PA says its transactions transparent
The Ministry of Housing last year sold prime lands at Ogle and near to ExxonMobil’s headquarters, for $30 million per acre to a local company whose director is controversial United States-based Guyanese businessman, Edul ‘Ed’Ahmad, Alliance For Change presidential candidate, Nigel Hughes, has charged.
Hughes yesterday shared excerpts of the document on his Facebook Page as he questioned how the company was able to get such low rates for prime lands and why the same isn’t afforded to citizens of this country.
“Can CH&PA [Central Housing & Planning Authority] indicate where a citizen can purchase an acre of land in Plantation Ogle near to ExxonMobil’s intended Head Office, from CH&PA for ($) 30M. A house lot in some residential locations exceeds ($)30M. We demand that the Minister with responsibility for CH&PA issue an immediate statement on the authenticity of this agreement,” he stated.
“Can the CH&PA disclose the list of names of persons who have been able to purchase land at Plantation Ogle at the same rate as NEW GLOBAL INVESTMENT INCORPORATED,” he also posted.
Stabroek News yesterday reached out to Minister of Housing and Water, Collin Croal, and Chief Executive Officer of the CH&PA, Sherwyn Greaves, for a response to Hughes’ charges but calls and messages went unanswered.
However, last night the CH&PA issued a statement without referring to Hughes’ allegation or to Ahmad. It said its processes are above board and transparent.
The CH&PA said it… “unequivocally asserts that the acquisition of commercial lands is an open process, available to any interested companies or individuals.
“CH&PA guarantees that all transactions follow established protocols rigorously, including those concerning the recent sale of commercial lands. The Ministry publicly advertised a call for Expressions of Interest from housing developers, and multiple companies not only expressed interest but also met the outlined criteria unequivocally.
“In our commitment to enhance the housing drive through Public Private Partnerships, we moved decisively to sell the lands.
“Concerning pricing, a uniform rate of $30 million per acre was established for all developers. There were absolutely no preferential rates or special considerations afforded to any entity.
“Per our standard procedures, all companies acquiring prime commercial lands are strictly required to adhere to the stipulated agreements regarding property use. Any deviation from these agreements will incur penalties, as detailed in the contractual arrangements.
“The CH&PA stands firmly committed to ensuring a fair and transparent process for the allocation of both residential and commercial lands, fully aligned with national development goals. We urge the public to remain vigilant and not be misled by external narratives aiming to create discord or undermine the integrity of this process”.
Complaints have surfaced in the public that select businessmen have been able to snatch up prime lands in and around Georgetown. Critics have argued that even if there are other bidders the favoured businessmen succeed as the government is in charge of appointing bid evaluation committees and controls the national tender board.
According to the agreement, the deal was made last year July where Ahmad signed on behalf of the company, New Global Investment Incorporated (NGIC), and Chief Executive Officer of the CH&PA signed for his agency.
“THIS AGREEMENT OF SALE AND PURCHASE (hereinafter referred to as the “Agreement”) is made and entered into at the City of Georgetown, in the County of Demerara, in the Republic of Guyana, this 17th day of July, 2024, by and BETWEEN: 1. THE CENTRAL HOUSING AND PLANNING AUTHORITY, a body corporate incorporated under the provisions of the Housing Act, Chapter 36:20 of the Laws of Guyana, with its registered office situate at 41 Brickdam and United Nations Place, Stabroek, Georgetown, Guyana (hereinafter called “the Vendor”), which term shall where the context so admits include its representatives and assigns of the One Part, represented herein by Mr. Sherwyn Greaves, Chief Executive Officer. -and-2. NEW GLOBAL INVESTMENT INCORPORATION, a company duly incorporated under the Companies Act, Cap 89:01, with its registered office situate at Lot 8 Ruimveldt Industrial Estate, Georgetown, Guyana (hereinafter referred to as “the Purchaser”), which term shall include its representatives and assigns of the Other Part, represented herein by Mr. Edul Ahmad, Director/Secretary,” the document states.
The document stated that CH&PA was selling the property on the agreement that Ahmad’s company meets a number of stipulations in its planning, investing, and development of the property.
“(i)constructing upscale residential developments, within the residential zone only, consisting of residential dwellings, townhouses and apartments, in accordance with the project proposal submitted (the “Project Proposal”) and design plans (the “Design Plan”) to be submitted: (ii)installing drainage (including concrete drains) and irrigation, roads (including internal roads), and street lighting (the “Infrastructure Works”) within 18 months of the date of this Agreement; subject to availability of site access, timely issuance of Approvals, weather conditions, local labour availability or where an event of force majeure occurs, which delays the completion of the Project, which said time will be extended by the Vendor upon the Purchaser’s request;” the agreement states.
It added, “(iii)substantially completing 70% of the residential constructions within 3 years of the date of this Agreement; subject to availability of site access, timely issuance of Approvals, weather conditions, local labour availability or where an event of force majeure-occurs, which delays the completion…”
Ahmad was arrested on July 21st, 2011 in New York on a range of charges but later entered a plea agreement with the government and on October 13, 2012 pleaded guilty to bank and wire fraud conspiracy before Judge Irizarry. Dubbed by the US government as the leader of an extensive mortgage fraud scheme, he was in 2017 sentenced to two years in jail.
Owing to the fact that he is a naturalised US citizen, Ahmad was able to return to his home in New York after serving his time.
In 2014, Ahmad was also at the centre of controversy here when lands that had been assigned to him at Leonora, West Coast Demerara for a wood processing plant were quietly transformed into a housing project. Ahmad had acquired the land from the Guyana Sugar Corporation via government-holding company NICIL in February 2011.
PPP/C governments have routinely faced questions over the handling of prime lots of land and this led to charges against senior functionaries as it related to swathes of land under NICIL that were sold to private businessmen.
The creation of the Pradoville housing scheme on the East Coast of Demerara also led to charges and an investigation of government officials.
