CJ to rule in GGMC/CH&PA $3B loan agreement cases
April 13, 2015 |
By KNews | Filed Under News
Chief Justice (Ag), Ian Chang is set to hand down his decisions in the two court cases involving the Guyana Geology and Mines Commission (GGMC) and the Central Housing and Planning Authority (CH&PA). These cases were brought against the entities by Working People’s Alliance (WPA) Desmond Trotman and CH&PA Board Member, Ranwell Jordan. The matters were filed to challenge the purported approval of a loan of $3B by the GGMC to the CH&PA. The action against the two state controlled entities sought to quash the agreement for the loan which the plaintiffs argued were fictitious and unlawful. On Thursday, lawyers representing both sides presented brief arguments when the matter came up for hearing before the acting Chief Justice (CJ). Attorney-at-Law Christopher Ram, who, along with Mr. Brenden Glasford, is representing the plaintiffs, told Kaieteur News that the Chief Justice informed the parties involved that they would be notified shortly of the date for decisions in both matters. Chief Justice (Ag) Ian Chang Chief Justice (Ag) Ian Chang The action arose after an announcement by the Ministry of Natural Resources and the Environment that the Housing Authority had applied to the GGMC for a $3B loan for the Government’s housing programme. Jordan’s affidavit evidence is that there was no decision by the CH&PA for any loan and that the entire matter was a fabrication. He is contending that as a Board Member of the CH&PA, he was not aware that the Housing Ministry was seeking to borrow such funds. Meanwhile, Trotman’s evidence is that the commission has no authority to lend the monies, which are supposed to be transferred to the Consolidated Fund. However, GGMC maintained that the agreement was made at the level of the Board of Directors, following an investment proposal by the CH&PA was financially sound. GGMC said the agreement outlined that the monies will be loaned for one year and would be used for the development of the housing sector, with a five percent interest rate being offered by CH&PA. According to the GGMC, this was 3.2 percent more than what was currently being earned via the commercial banks and other investment options available to the commission. The parties involved had articulated that in the event CH&PA fails to repay the entire amount by the deadline, the Commission has the right to increase the interest rate by seven percent. The body said that the agreement was subject to the terms and conditions enshrined in the Loan Agreement and any additional guarantees required by the Commission. However, according to the actions filed last April, the plaintiffs are arguing that should the $3B Loan Agreement between the Guyana Geology and Mines Commission (GGMC) and the Central Housing and Planning Authority (CHPA) materialize, it would represent the crudest form of financial lawlessness. Based on the grounds listed in the action, the Chief Justice had instructed that GGMC and CH&PA must prove to the court why a Writ of Certiorari should not be granted to prevent GGMC from going ahead with its decision to lend the monies to the Housing authority. Chang also instructed that the Housing Authority should justify why a Writ of Prohibition should not be dispensed to ensure that the mining commission is inhibited from making any further move on the loan on the premise that it is in breach of the law. The Housing Authority was also directed to convince the Court that a Writ of Certiorari ought not to be issued to reverse its choice to present an investment proposal to the Mines Commission and enter into the loan agreement.