Govt. inks MoU with ‘Ghost Company’…It’s a stark reminder of the Fip Motilall rip-off – AFC

  Alliance for Change (AFC) General Secretary, David Patterson has expressed disbelief and dissatisfaction at reports that the Cabinet unanimously agreed to the signing of a Memorandum of Understanding (MoU) with a company that seemingly doesn’t exist. At an AFC press conference held at Sidewalk Café yesterday, Patterson told media operatives that this move by the government is a stark reminder of the Fip Motilall Amaila Falls deal. “It has happened before; we have seen it with Fip Motilall.”

AFC’s David Patterson

Secretary to the Cabinet, Dr. Roger Luncheon had last week announced Cabinet’s approval to the signing of the MoU with a Canadian company that was later identified as Natural Globe Inc. That MoU is to secure the company’s setting up of a US$30M recycling plant in Guyana. Upon checks, Kaieteur News discovered that the company has no record of its existence on the internet. As the newspaper sought explanation and clarification, the owner of the ‘company’ Mohamed Osman, said that his company refrains from advertising to avoid copycats who might want to steal ideas. Patterson said yesterday that he cannot comprehend how an entire Cabinet of over 20 Ministers and other Government Officials, including the President, could have agreed on a Memorandum of Understanding (MOU) with such a company. Patterson added that this is a glaring example of what the Government can do if it’s no objection in the awarding of contacts is continued. The Politician once again called for the immediate establishment of the Public Procurement Commission as he reiterated his party’s non- support for Cabinet to maintain its “no objection” power in the procurement process. Even though Makeshwar ‘Fip’ Motilall initially benefited from the US$15.4M contract, in particular the construction of the access road, it is still unclear the actual amount of money he walked away with from the Amaila Falls Hydro Electric Project. It is also still unclear whether Government conducted due diligence on Motilall to ascertain if he was deserving of an interim licence for Guyana’s hydro-electric power development, a huge undertaking requiring massive investments. Winston Brassington, Head of the Technical Team for the Project, who was Government’s representative at a public consultation, dodged queries on both matters. Synergy Holdings Inc. was granted an interim licence on July 29, 2002, for the development of a Hydro-electric power station and reservoir, and the construction of a transmission line to the coast to sell electricity. Motilall later sold his interim licence to Sithe Global Amaila Holdings Inc. In relation to the “ghost company,” Patterson said he could not stress enough how bad it is that “this agreement got the blessing of the entire cabinet.” It seems as if government and Opposition will go head to head on this one, as the Opposition is maintaining that there must be a Procurement Commission and only that body will award contracts, while Government remains steadfast in its position of maintaining its input in the awarding of contracts, and has tabled an amendment in the National Assembly to ensure same.