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Show-of-Hands, Secret Ballots and the making of an Elected Oligarchy

 

Posted By Tarron Khemraj On February 9, 2011 @ 5:02 am In Daily,Features |

 

Introduction

 

Recently there have been open debates between senior members of the ruling PPP. Mr. Ramkarran, the respected House Speaker, is in support of a secret ballot to determine the next Presidential Candidate of the PPP. President Jagdeo, however, does not like the idea of a secret ballot, but would prefer that the members of the Central Executive Committee of the PPP show their hands when voting for the next candidate. This is a curious position to take by the President who was elected by secret ballot.

 

One might ask why is the President keen to have members show their hands when voting for the future Presidential Candidate. The answer to this lies somewhere in the series of Development Watch columns I wrote on elected oligarchy. If a leader is going to control the economic space in Guyana then he must maintain control over the executive members of the PPP party, which after winning the national election is able to govern under a Burnham Constitution.

 

This internal party control must be fortified before the leader accedes to the national stage to enjoy Forbes Burnham’s Constitution. The internal control takes the form of generous pay packages and privileges for the family members of the leadership of the PPP. Therefore, the show-of-hands is a control mechanism intended to allow the President to select his candidate. In essence, then, this control system is at the heart of the making of the Guyanese oligarchy. The prize is to win the election in order to enjoy the luxury of non-transparency that comes with the Burnham Constitution. Once the party leader is armed with the Burnham Constitution, he can now control the economic space by showering tax payers’ monies to chosen friends and families.

 

Key Features of the Oligarchy


The elected oligarchy comes into being by the following chain of events. First, Democratic Centralism allows the a few individuals in the PPP to select a Presidential Candidate who is then presented to the party mass supporters and the nation as a whole (this is the reason why the President wants the method of show- of-hands over that of secret ballots. Second, given the entrenched ethnic voting patterns, the Candidate is likely to win the national election and therefore enjoy the immunities of the mildly tinkered 1980 Burnham Constitution. Third, this Candidate then surrounds himself with chosen like-minded individuals. Fourth, generous State sponsored incentives (using the monies of the people) are then offered to chosen members of the business class. This allows the elected oligarchy to control the economic space in Guyana.  Some members of the oligarchy will eventually reach the point of buying out media assets to further dominate the society and public views.

Adverse Effects

As I have noted in previous columns, the oligarchy promotes its own subservient business class. However, in the aggregate the oligarchic government crowds out private investments – hence a crucial reason for the perpetuation of a backward production structure in Guyana. Economic transformation will require effective governance and large amounts of foreign private investments (from multinationals and from the Diaspora).

 

Until this period, the oligarchy does not seem too keen to lose control of the existing tiny economic space. Allowing large inflows of foreign private capital will increase the economic space and make for faster economic transformation. It is this transformation that will allow for better wages and salaries for public and private workers. The citizens of a nation are as rich as what they produce.

The oligarchy also retards rapid economic progress through the group-think syndrome. Once the voting members of the Executive and Central Committees are under the control of a Benefactor-in-Chief, they will not likely raise questions when wrong policies are about to be implemented. The first example would be the Skeldon sugar factory investment when it was known to analysts by the mid-1990s that sugar agreement could come under threat because of the new WTO rules.

 

Second, the financing of the LCDS, enshrined in REDD schemes, is uncertain and cannot provide the level of funds for structural production transformation of the economy. In other words, the society does not do as well as it could with greater freedoms. This is shown by negative total factor productivity (TFP) growth in recent years as some studies have shown. As I mentioned, some time ago TFP measures how well a country is utilizing its resources. With negative growth, it means the country is doing a poor job in utilizing its human and other resources optimally.

Baseline Constitutional Reforms


The only way to break away from such a control mechanism exerted on the country by a few individuals is to have deep Constitutional reforms. One such reform could include abandoning the Executive Presidency. A second reform would be to ensure that a party leader never gets to select the Members of Parliament as the present list system allows.  The party list system allows the party leader – possibly under the control of a Benefactor-in-Chief – to select like-minded Parliamentarians who will not raise too many objections to misrule. However, the leader shoots himself in the feet because it is not possible to get alternative viewpoints on potential policy failures.

 

The bigger problem is the country is taken down sub-optimal investment paths.
Therefore, Constitutional reform must allow the situation where Members of Parliament are elected directly by the people. Parliamentarians must be made accountable to a specific geographic location rather than a leader or political benefactor. One way to facilitate this would be to have an upper and lower house of Parliament.

 

In this arrangement, in my opinion, there is no need to jettison the system of proportional representation.  The Prime Minister could be elected via proportional representation while the Parliamentarians are elected on the same ballot but for a specific geographic location. There are other arrangements that have to be implemented to prevent oligarchies from emerging after free and fair elections. The crucial point is Guyana’s democracy is deeply flawed and it does not serve well the developmental needs of the country.

FM

Oligarchic Government and the Crowding Out of Private Investments

 

Posted By Stabroek staff On August 25, 2010 @ 5:01 am In Features | 


By Tarron Khemraj


Introduction


In past columns in this series on elected oligarchy, I argued that the primary channel through which the Jagdeo elected oligarchy retards progress is through the stifling of independent private investors and the pursuit of sub-optimal government investment projects. This column develops this thesis further by providing data to show that the government’s investments have a negative effect on private investments at the macro level.

 

The case of Mr. Robert Badal presents a clear example. Here the PPP government intends to utilize taxpayers’ monies and subsidize a foreign brand so as to bring competition against the Pegasus, which is owned by a local investor, Mr. Badal. It is not that I am against competition, but should the State – which is presently in the hands of elected oligarchs – use the monies of the people to engineer the destruction of domestic investors which it dislikes? Regardless of the political views of investors, they create jobs that ordinary Guyanese need. If the Marriott wishes to invest on its own, then that is wonderful for Georgetown and Guyana. I am sure there are better uses for the subsidy.   On the other hand, the President has been busy favouring some investors who are friends. Some examples include former Buddy’s, Queens Atlantic Investment Inc and the road contract to access the proposed Amaila hydro project. The critical question which remains is whether this has benefitted the country in the aggregate. There is no way to assess the overall job creation of the oligarchic economic strategy as Guyana does not compile unemployment data on a regular basis as do Jamaica, Trinidad and Tobago, Barbados and The Bahamas. Therefore, I will use published data to show that in the net the public investments of the PPP government since 1992 have been detrimental to private investments, which many would agree are essential for economic progress.

 

Sub-Optimal Investment Projects


When the Jagdeo oligarchy is not crowding out private businesses, it is busy making economic decisions that could hardly be seen as optimal in terms of long-term economic transformation. As these columns have repeated, economic transformation must commence with production transformation. The masses are as rich as what they produce. An ACCA accountant lives a better life than an accounts clerk with only CXC because the ACCA was able to upgrade his/her skills. The same principle applies to the economy as a whole. If the country continues to concentrate on primary products, then it will stay poor.

 

At times these decisions appear devoid of logic. Take for instance the road project and the Amaila hydro electricity project. A contract was awarded to build the road but it was reported by the Stabroek News on August 10 that the IDB is yet to determine the feasibility of the project. Earlier the President noted that the Chinese government is willing to fund the hydro project. These reports raise all types of questions and suspicions. For example, is the Chinese government willing to part finance a project without a feasibility study? If that is the case, what is the quid pro quo? What is the back up plan for the road that would be built should there be no financing for the hydro? Is US$15 million enough to build new roads through swamps and virgin forests? Is this entire episode an election year gimmick?

 

Of course, perhaps the best example of a sub-optimal investment would be the Skeldon investment which dives Guyana deeper into sugar production rather than moving mainly into ethanol or low calorie sweeteners. These columns have argued many times why renewable energy is better than sugar. The use of bagasse for energy would materialize in any case whether the factory produces sugar or ethanol.

 

The Crowding Out of Private Investments


I have provided micro level examples of a trend to crowd out some private investors who are not on the “right” side of the political divide. I will present some data in support of a suggestive macro level negative effect of the government’s public investments. Before doing so let me present the popular economics textbook story of the crowding out thesis. The thesis goes like this: the government first borrows heavily to finance its investments. When it does so it causes interest rates to increase and therefore makes it hard for private investors to finance their investments. There is a quantity effect also as the government competes for the scarce stock of investment funds (or national savings) to finance its spending, private investors find it more difficult to obtain funds.

 

While I will not discount the quantity effect in Guyana given the tendency for the banks to demand large quantities of excess liquid assets (short-term Treasury bills), my argument is more a political economy argument. The Jagdeo government has decided to create its own private sector using state largesse. This private sector was termed the Newly Emerging Private Sector (NEPS) by the President himself. In other words, we have a situation where an oligarchic government crowds out private investors that could also be creating jobs. The crowding out, therefore, results from a quest to control the economic space, which eventually results in the total domination of the political space. The quest of domination of course has its own financial rewards as those who obtained favoured treatment must either shut up politically or pay up to finance election campaigns, build homes for the oligarchic leaders, provide fancy cars, and other things. It is therefore a classic oligarchy where we have the interaction of the political and economic sphere in the pursuit of total domination.

 

To obtain a macro effect, I use Bank of Guyana data to calculate the annual percentage of GDP accounted for by private investments and government investments. I use annual data from 1993 to 2009. I obtained a simple correlation of -19%. The scatter plot (Figure 1) below shows a case where as government investments increase private investments decline. This is shown by the negatively sloping trend line. The old saying goes that correlation does not imply causation. However, I have proposed the causative channel of an elected oligarchy crowding out the private sector in the pursuit of political and economic domination. The scatter plot is certainly consistent with my argument.

 

Figure 1. The crowding out of the private sector


Conclusion

What matters at the end of the day is for government investments and spending to crowd in (increase) private investments rather than crowd out (decrease) private investments. The net effect matters for long-term production transformation and jobs creation. Indeed, some of the members of the NEPS have benefitted from the Jagdeo consolidation of power. However, others have suffered, some were frustrated, and some investors lost money. What matters is the end result or the net effect of the power consolidation.

 

I am still optimistic that the State can become a developmental one rather than a semi-predatory one. We have to study the roles played by the developmental states of Taiwan, South Korea, Japan, Mauritius and other places and shun the methods of the predatory and semi-predatory ones. In the Guyana context, at least three important tasks will have to be accomplished to reverse its current semi-predatory instincts: (i) Constitutional reform; (ii) the formation of a meritocratic public service; and (iii) the Freedom of Information Act. These themes will be picked up in the next column.

FM
Originally Posted by TK:

Show-of-Hands, Secret Ballots and the making of an Elected Oligarchy

 

Posted By Tarron Khemraj On February 9, 2011 @ 5:02 am In Daily,Features |

 

Introduction

 

Recently there have been open debates between senior members of the ruling PPP. Mr. Ramkarran, the respected House Speaker, is in support of a secret ballot to determine the next Presidential Candidate of the PPP. President Jagdeo, however, does not like the idea of a secret ballot, but would prefer that the members of the Central Executive Committee of the PPP show their hands when voting for the next candidate. This is a curious position to take by the President who was elected by secret ballot.

 

One might ask why is the President keen to have members show their hands when voting for the future Presidential Candidate. The answer to this lies somewhere in the series of Development Watch columns I wrote on elected oligarchy. If a leader is going to control the economic space in Guyana then he must maintain control over the executive members of the PPP party, which after winning the national election is able to govern under a Burnham Constitution.

 

This internal party control must be fortified before the leader accedes to the national stage to enjoy Forbes Burnham’s Constitution. The internal control takes the form of generous pay packages and privileges for the family members of the leadership of the PPP. Therefore, the show-of-hands is a control mechanism intended to allow the President to select his candidate. In essence, then, this control system is at the heart of the making of the Guyanese oligarchy. The prize is to win the election in order to enjoy the luxury of non-transparency that comes with the Burnham Constitution. Once the party leader is armed with the Burnham Constitution, he can now control the economic space by showering tax payers’ monies to chosen friends and families.

 

Key Features of the Oligarchy


The elected oligarchy comes into being by the following chain of events. First, Democratic Centralism allows the a few individuals in the PPP to select a Presidential Candidate who is then presented to the party mass supporters and the nation as a whole (this is the reason why the President wants the method of show- of-hands over that of secret ballots. Second, given the entrenched ethnic voting patterns, the Candidate is likely to win the national election and therefore enjoy the immunities of the mildly tinkered 1980 Burnham Constitution. Third, this Candidate then surrounds himself with chosen like-minded individuals. Fourth, generous State sponsored incentives (using the monies of the people) are then offered to chosen members of the business class. This allows the elected oligarchy to control the economic space in Guyana.  Some members of the oligarchy will eventually reach the point of buying out media assets to further dominate the society and public views.

Adverse Effects

As I have noted in previous columns, the oligarchy promotes its own subservient business class. However, in the aggregate the oligarchic government crowds out private investments – hence a crucial reason for the perpetuation of a backward production structure in Guyana. Economic transformation will require effective governance and large amounts of foreign private investments (from multinationals and from the Diaspora).

 

Until this period, the oligarchy does not seem too keen to lose control of the existing tiny economic space. Allowing large inflows of foreign private capital will increase the economic space and make for faster economic transformation. It is this transformation that will allow for better wages and salaries for public and private workers. The citizens of a nation are as rich as what they produce.

The oligarchy also retards rapid economic progress through the group-think syndrome. Once the voting members of the Executive and Central Committees are under the control of a Benefactor-in-Chief, they will not likely raise questions when wrong policies are about to be implemented. The first example would be the Skeldon sugar factory investment when it was known to analysts by the mid-1990s that sugar agreement could come under threat because of the new WTO rules.

 

Second, the financing of the LCDS, enshrined in REDD schemes, is uncertain and cannot provide the level of funds for structural production transformation of the economy. In other words, the society does not do as well as it could with greater freedoms. This is shown by negative total factor productivity (TFP) growth in recent years as some studies have shown. As I mentioned, some time ago TFP measures how well a country is utilizing its resources. With negative growth, it means the country is doing a poor job in utilizing its human and other resources optimally.

Baseline Constitutional Reforms


The only way to break away from such a control mechanism exerted on the country by a few individuals is to have deep Constitutional reforms. One such reform could include abandoning the Executive Presidency. A second reform would be to ensure that a party leader never gets to select the Members of Parliament as the present list system allows.  The party list system allows the party leader – possibly under the control of a Benefactor-in-Chief – to select like-minded Parliamentarians who will not raise too many objections to misrule. However, the leader shoots himself in the feet because it is not possible to get alternative viewpoints on potential policy failures.

 

The bigger problem is the country is taken down sub-optimal investment paths.
Therefore, Constitutional reform must allow the situation where Members of Parliament are elected directly by the people. Parliamentarians must be made accountable to a specific geographic location rather than a leader or political benefactor. One way to facilitate this would be to have an upper and lower house of Parliament.

 

In this arrangement, in my opinion, there is no need to jettison the system of proportional representation.  The Prime Minister could be elected via proportional representation while the Parliamentarians are elected on the same ballot but for a specific geographic location. There are other arrangements that have to be implemented to prevent oligarchies from emerging after free and fair elections. The crucial point is Guyana’s democracy is deeply flawed and it does not serve well the developmental needs of the country.

Why don't you propose baseline constitutional reforms which will place a legal firewall between politics and the military machinery.  Oh, that might very well offend your buddy Redux.

FM
Originally Posted by baseman:

. . . baseline constitutional reforms which will place a legal firewall between politics and the military machinery

ahmmm . . . what is the existing "legal" nexus between "politics and the military machinery" that your "firewall" is supposed to address?

 

again, take your time mein Herr

FM
Originally Posted by baseman:
Originally Posted by TK:

Show-of-Hands, Secret Ballots and the making of an Elected Oligarchy

 

Posted By Tarron Khemraj On February 9, 2011 @ 5:02 am In Daily,Features |

 

Introduction

 

Recently there have been open debates between senior members of the ruling PPP. Mr. Ramkarran, the respected House Speaker, is in support of a secret ballot to determine the next Presidential Candidate of the PPP. President Jagdeo, however, does not like the idea of a secret ballot, but would prefer that the members of the Central Executive Committee of the PPP show their hands when voting for the next candidate. This is a curious position to take by the President who was elected by secret ballot.

 

One might ask why is the President keen to have members show their hands when voting for the future Presidential Candidate. The answer to this lies somewhere in the series of Development Watch columns I wrote on elected oligarchy. If a leader is going to control the economic space in Guyana then he must maintain control over the executive members of the PPP party, which after winning the national election is able to govern under a Burnham Constitution.

 

This internal party control must be fortified before the leader accedes to the national stage to enjoy Forbes Burnham’s Constitution. The internal control takes the form of generous pay packages and privileges for the family members of the leadership of the PPP. Therefore, the show-of-hands is a control mechanism intended to allow the President to select his candidate. In essence, then, this control system is at the heart of the making of the Guyanese oligarchy. The prize is to win the election in order to enjoy the luxury of non-transparency that comes with the Burnham Constitution. Once the party leader is armed with the Burnham Constitution, he can now control the economic space by showering tax payers’ monies to chosen friends and families.

 

Key Features of the Oligarchy


The elected oligarchy comes into being by the following chain of events. First, Democratic Centralism allows the a few individuals in the PPP to select a Presidential Candidate who is then presented to the party mass supporters and the nation as a whole (this is the reason why the President wants the method of show- of-hands over that of secret ballots. Second, given the entrenched ethnic voting patterns, the Candidate is likely to win the national election and therefore enjoy the immunities of the mildly tinkered 1980 Burnham Constitution. Third, this Candidate then surrounds himself with chosen like-minded individuals. Fourth, generous State sponsored incentives (using the monies of the people) are then offered to chosen members of the business class. This allows the elected oligarchy to control the economic space in Guyana.  Some members of the oligarchy will eventually reach the point of buying out media assets to further dominate the society and public views.

Adverse Effects

As I have noted in previous columns, the oligarchy promotes its own subservient business class. However, in the aggregate the oligarchic government crowds out private investments – hence a crucial reason for the perpetuation of a backward production structure in Guyana. Economic transformation will require effective governance and large amounts of foreign private investments (from multinationals and from the Diaspora).

 

Until this period, the oligarchy does not seem too keen to lose control of the existing tiny economic space. Allowing large inflows of foreign private capital will increase the economic space and make for faster economic transformation. It is this transformation that will allow for better wages and salaries for public and private workers. The citizens of a nation are as rich as what they produce.

The oligarchy also retards rapid economic progress through the group-think syndrome. Once the voting members of the Executive and Central Committees are under the control of a Benefactor-in-Chief, they will not likely raise questions when wrong policies are about to be implemented. The first example would be the Skeldon sugar factory investment when it was known to analysts by the mid-1990s that sugar agreement could come under threat because of the new WTO rules.

 

Second, the financing of the LCDS, enshrined in REDD schemes, is uncertain and cannot provide the level of funds for structural production transformation of the economy. In other words, the society does not do as well as it could with greater freedoms. This is shown by negative total factor productivity (TFP) growth in recent years as some studies have shown. As I mentioned, some time ago TFP measures how well a country is utilizing its resources. With negative growth, it means the country is doing a poor job in utilizing its human and other resources optimally.

Baseline Constitutional Reforms


The only way to break away from such a control mechanism exerted on the country by a few individuals is to have deep Constitutional reforms. One such reform could include abandoning the Executive Presidency. A second reform would be to ensure that a party leader never gets to select the Members of Parliament as the present list system allows.  The party list system allows the party leader – possibly under the control of a Benefactor-in-Chief – to select like-minded Parliamentarians who will not raise too many objections to misrule. However, the leader shoots himself in the feet because it is not possible to get alternative viewpoints on potential policy failures.

 

The bigger problem is the country is taken down sub-optimal investment paths.
Therefore, Constitutional reform must allow the situation where Members of Parliament are elected directly by the people. Parliamentarians must be made accountable to a specific geographic location rather than a leader or political benefactor. One way to facilitate this would be to have an upper and lower house of Parliament.

 

In this arrangement, in my opinion, there is no need to jettison the system of proportional representation.  The Prime Minister could be elected via proportional representation while the Parliamentarians are elected on the same ballot but for a specific geographic location. There are other arrangements that have to be implemented to prevent oligarchies from emerging after free and fair elections. The crucial point is Guyana’s democracy is deeply flawed and it does not serve well the developmental needs of the country.

Why don't you propose baseline constitutional reforms which will place a legal firewall between politics and the military machinery.  Oh, that might very well offend your buddy Redux.

 

The military has to be ethnically balanced and the National Service reintroduced. However, the bigger crisis facing the nation is the police force which lacks credibility and is compromised by the most corrupt PPP. The military had many Rodneyites. Did the military overthrow the PPP? What am I missing? 

FM

Two years on…Indian logging firm still to build processing plant

 

Posted By Stabroek editor On January 1, 2013 @ 2:47 pm In Local | No Comments

 

Start-up logging company, Vaitarna Holding Private Incorporated (VHPI) has not yet set up a promised wood processing plant here but company director Chethan Narayan has assured that such a facility is on the cards and the company is doing the groundwork.

 

“We are still working on it,” Narayan told Stabroek News when contacted last week. VHPI is a subsidiary of the India-based Coffee Day Group. Coffee Day, through its Dark Forest subsidiary, in 2010 acquired the State Forest Exploratory Permit (SFEP) for 391,853 hectares of forest originally awarded in 2007 to US-based Simon and Shock International Logging Inc (SSILI), after buying out SSILI.

After the acquisition, the company registered in Guyana as SSILI. Subsequently, Dark Forest acquired the 345,961 hectares concession which was originally awarded to Caribbean Resources Limited (CRL). The government accepted an offer of $600 million for the Timber Sales Agreement (TSA). The company was registered as VHPI and has been harvesting and exporting logs from this concession.

The total area held by Coffee Day is 737,814 hectares of forest.

The company has committed to set up a processing plant here with V G Siddhartha, owner of the Coffee Day group, saying in May that a processing centre for logs will be set up here but the main facility will be in India.

 

Narayan told Stabroek News that they are doing the groundwork for the setting up of the plant but could not give a time frame as to when the processing centre will be set up. “We are working on the commercial (aspect),” he said adding that they have to look at the cost, type of production, capacity, market and so on.  “We are working on it,” he assured.

 

He disclosed that the Guyana Forestry Commission (GFC) had asked about a month back for a practical plan for setting up a sawmill and this was submitted. In addition, their five-year operational plan includes the setting up of a sawmill, the director said. In the meantime, the company continues to harvest logs from its CRL concession and he noted that it is a new venture. Narayan said that the company has 15 pieces of equipment on the ground and logs are exported and some sold locally.

 

He noted that in terms of setting up a plant, the company has to look at every aspect. He point out that Vaitarna’s concessions make it the second largest in Guyana and “our setup should be big.”

 

Meantime, the company has completed all the prerequisites to convert its SFEP for the SSILI concession to a TSA which would allow it to harvest logs and is now awaiting approval from the GFC. “We can get (the) TSA at any moment,” Narayan said adding that they have done all the studies to a high standard.

 

Siddhartha has said that the company has exported logs from Guyana to India and China. The export of unprocessed logs has long been a concern of activists who argue that Guyana could earn more from processing logs here and exporting the products. Former forestry minister and now Minister of Natural Resources and the Environment, Robert Persaud had said last year that there would be no large scale export of logs by Vaitarna. (Gaulbert Sutherland)

FM

12 armed ranks guard Jagdeo round the clock

 
JANUARY 1, 2013 | BY  | FILED UNDER NEWS 

 

 
Over a year after he demitted office Former President Bharrat Jagdeo continues to live like he’s still the head of state, especially when it comes to his security detail.


No wonder opposition politicians are clamouring for a review of his benefits, which they claim are placing a heavy burden on the taxpayers of the country.

 

Flashback: Jagdeo inspecting a Guard of Honour by police ranks while he was Head of State.

 

Kaieteur News has managed to ascertain that the former President still has his full complement of security personnel, consisting of fulltime members of the Guyana Police Force.

 

This situation is even more troubling especially when it is taken into account that the Guyana Police Force is short on ranks to effectively protect citizens.
At present the force is operating with approximately 3500 ranks to serve a population of about 720,000 persons.


This works out to about one rank to every 205 persons.
But reliable sources have informed that Jagdeo alone currently has a total of 12 guards on a 24 hours basis.


There are eight who are split up over two 12 hours shifts at his mansion in Pradoville 2 (Sparendaam, East Coast Demerara) while four others act as personal security to the former President.

 

Contrast this with the fact that the Leader of the Parliamentary Opposition has claimed that the government is failing in its obligation when it comes to the provision of security for that office.

 

An act of parliament mandates the government to provide a “rent free office” for the Opposition Leader, and security for both the provided office and the home of the Opposition Leader.


However, that provision is lacking, as $1M is owed to a security firm for services offered to the Opposition Leader for the period January-June of the year.
A Partnership for National Unity officials noted that security service from the police was not authorized until June last year, hence the need to solicit private services.

FM
Originally Posted by TK:
Originally Posted by baseman:
Originally Posted by TK:

Show-of-Hands, Secret Ballots and the making of an Elected Oligarchy

 

Posted By Tarron Khemraj On February 9, 2011 @ 5:02 am In Daily,Features |

 

Introduction

 

Recently there have been open debates between senior members of the ruling PPP. Mr. Ramkarran, the respected House Speaker, is in support of a secret ballot to determine the next Presidential Candidate of the PPP. President Jagdeo, however, does not like the idea of a secret ballot, but would prefer that the members of the Central Executive Committee of the PPP show their hands when voting for the next candidate. This is a curious position to take by the President who was elected by secret ballot.

 

One might ask why is the President keen to have members show their hands when voting for the future Presidential Candidate. The answer to this lies somewhere in the series of Development Watch columns I wrote on elected oligarchy. If a leader is going to control the economic space in Guyana then he must maintain control over the executive members of the PPP party, which after winning the national election is able to govern under a Burnham Constitution.

 

This internal party control must be fortified before the leader accedes to the national stage to enjoy Forbes Burnham’s Constitution. The internal control takes the form of generous pay packages and privileges for the family members of the leadership of the PPP. Therefore, the show-of-hands is a control mechanism intended to allow the President to select his candidate. In essence, then, this control system is at the heart of the making of the Guyanese oligarchy. The prize is to win the election in order to enjoy the luxury of non-transparency that comes with the Burnham Constitution. Once the party leader is armed with the Burnham Constitution, he can now control the economic space by showering tax payers’ monies to chosen friends and families.

 

Key Features of the Oligarchy


The elected oligarchy comes into being by the following chain of events. First, Democratic Centralism allows the a few individuals in the PPP to select a Presidential Candidate who is then presented to the party mass supporters and the nation as a whole (this is the reason why the President wants the method of show- of-hands over that of secret ballots. Second, given the entrenched ethnic voting patterns, the Candidate is likely to win the national election and therefore enjoy the immunities of the mildly tinkered 1980 Burnham Constitution. Third, this Candidate then surrounds himself with chosen like-minded individuals. Fourth, generous State sponsored incentives (using the monies of the people) are then offered to chosen members of the business class. This allows the elected oligarchy to control the economic space in Guyana.  Some members of the oligarchy will eventually reach the point of buying out media assets to further dominate the society and public views.

Adverse Effects

As I have noted in previous columns, the oligarchy promotes its own subservient business class. However, in the aggregate the oligarchic government crowds out private investments – hence a crucial reason for the perpetuation of a backward production structure in Guyana. Economic transformation will require effective governance and large amounts of foreign private investments (from multinationals and from the Diaspora).

 

Until this period, the oligarchy does not seem too keen to lose control of the existing tiny economic space. Allowing large inflows of foreign private capital will increase the economic space and make for faster economic transformation. It is this transformation that will allow for better wages and salaries for public and private workers. The citizens of a nation are as rich as what they produce.

The oligarchy also retards rapid economic progress through the group-think syndrome. Once the voting members of the Executive and Central Committees are under the control of a Benefactor-in-Chief, they will not likely raise questions when wrong policies are about to be implemented. The first example would be the Skeldon sugar factory investment when it was known to analysts by the mid-1990s that sugar agreement could come under threat because of the new WTO rules.

 

Second, the financing of the LCDS, enshrined in REDD schemes, is uncertain and cannot provide the level of funds for structural production transformation of the economy. In other words, the society does not do as well as it could with greater freedoms. This is shown by negative total factor productivity (TFP) growth in recent years as some studies have shown. As I mentioned, some time ago TFP measures how well a country is utilizing its resources. With negative growth, it means the country is doing a poor job in utilizing its human and other resources optimally.

Baseline Constitutional Reforms


The only way to break away from such a control mechanism exerted on the country by a few individuals is to have deep Constitutional reforms. One such reform could include abandoning the Executive Presidency. A second reform would be to ensure that a party leader never gets to select the Members of Parliament as the present list system allows.  The party list system allows the party leader – possibly under the control of a Benefactor-in-Chief – to select like-minded Parliamentarians who will not raise too many objections to misrule. However, the leader shoots himself in the feet because it is not possible to get alternative viewpoints on potential policy failures.

 

The bigger problem is the country is taken down sub-optimal investment paths.
Therefore, Constitutional reform must allow the situation where Members of Parliament are elected directly by the people. Parliamentarians must be made accountable to a specific geographic location rather than a leader or political benefactor. One way to facilitate this would be to have an upper and lower house of Parliament.

 

In this arrangement, in my opinion, there is no need to jettison the system of proportional representation.  The Prime Minister could be elected via proportional representation while the Parliamentarians are elected on the same ballot but for a specific geographic location. There are other arrangements that have to be implemented to prevent oligarchies from emerging after free and fair elections. The crucial point is Guyana’s democracy is deeply flawed and it does not serve well the developmental needs of the country.

Why don't you propose baseline constitutional reforms which will place a legal firewall between politics and the military machinery.  Oh, that might very well offend your buddy Redux.

 

The military has to be ethnically balanced and the National Service reintroduced. However, the bigger crisis facing the nation is the police force which lacks credibility and is compromised by the most corrupt PPP. The military had many Rodneyites. Did the military overthrow the PPP? What am I missing? 

You are a naive joker.

FM

Chinese firm still to set up laptop assembly facility

 

Posted By Stabroek editor On January 2, 2013 @ 5:04 am In Local |

 

The Chinese electronics giant, Haier, has not yet begun assembling laptops here as a result of several factors including the re-organisation of the company’s structure in China.

 

“It’s all in place, it’s just a matter of when to do it,” said Brian James, the Chinese firm’s local partner, when contacted by Stabroek News last week. He said that the firm has not yet begun assembling laptops or other electronic appliances. At the unveiling of the company’s assembly line at Industrial Site, Ruimveldt, in June, James had said that Haier was working to have operations from its new base up and running within two months.

 

Quizzed about the delay, he said that the “temporary halt” is as a result of supplying the second and third tranches of laptops for the One Laptop Per Family (OLPF) programme as well as re-organisation within the Haier structure in China. James said that the finalization of plans and the models to be assembled is being done. However, he could not give a timeline as to when the assembling will begin because no decision has yet been made on this aspect.

 

Company officials had said that the assembly line will be capable of producing 200,000 laptops and monitors and 150,000 television sets a year. The replica OLPF project assembly line was engineered to be eco-friendly with minimal power consumption, according to officials.

 

It was said too that the assembly line would be mostly man powered and 70 technicians would be responsible for the putting together of all products. The assembly building would also house the components and the finished products ready for sale. Different stations were designed to ensure quality products including burn stations that will test all electrical components for faults and assess durability, according to the company.

 

James had said that the US$2 million investment in the plant is not just about computers as the company will focus on assembling other appliances. He had said the venture could mean substantial savings on products for consumers. Haier is targeting the Caribbean market as well as the country’s neighbours and the existing business agreement between Guyana and Brazil will aid the entity.

James had told Stabroek News in February that in addition to the plant, the company plans to establish an industrial park within five years in an investment pegged at US$10 million.

 

Last year, Haier won a US$7.56 million contract for the supply of 27,000 netbooks for the OLPF project. (Gaulbert Sutherland)

FM
Originally Posted by baseman:

TK, you are filled with envy and bitterness.  I don't understand as you would not return to Guyana anyway even if the PNC/AFC wins.  Why the hatred, it mystifies.

 

I guess the oligarchy thread must be making the exploiters and the representative of the exploiters uncomfortable. You see some of us did okay all on our abilities and have no reason to envy others who are clubbing and scheming to control the people's resources. What you interpret as bitterness is just an expression of our duty to repay those folks in the motherland who gave us a free education. 

FM

I have to say this is one of the more clever incidences of expropriation by the oligarchs. No doubt Moti, the oligarchs and the Oligarch-in-Chief got their piece from the deal. The Guyanese people got nothing and lost money. Now an insurance company has to pay up. Everyone realized Moti was a bogus thing and did not have the experience. How come this insurance company did not see that? Who at the insurance company made the decision when school boys/girls knew something was amiss? 

==========================

 

Amaila Falls Road Project…Gov’t wants court to force payment of US$1.5M bond

 
JANUARY 5, 2013 | BY  | FILED UNDER NEWS 

 

The government wants the court to force insurance company Hand in Hand to pay US$1.5 million after it fired Makeshwar “Fip” Motilall from the Amaila Falls road project.


The former Bharrat Jagdeo administration had handed Motilall a US$15.4 million to build the road leading to Amaila Falls where the government plans to construct a mega hydro power plant.


However, with Motilall unable to get the job done, he was fired last January, a month after the new Donald Ramotar Government took office.
A performance bond was posted by Hand in Hand Insurance Company to the value of 10 per cent of the contract, or US$1.5. With Motilall failing to perform and out of the way, the government sought to get the US$1.5 million, but to no avail.
“We are dealing with that in the courts,” Minister of Transport and Hydraulics Robeson Benn said yesterday.


He said that there was a “valid” performance bond and there were “issues with performance on the contract” and so the government is moving to secure the bond.
Sources had indicated that Motilall’s performance bond expired ever since July 2011.


That bond was negotiated and brought into force when the contract with Motilall was signed in January 2010, with duration of eight months. But Motilall was never able to meet that deadline and had several extensions until the plug was pulled in January 2011.


When the validity of that bond expired in July 2011, Motilall was expected to secure another, but he did not and that was used to fire him.


In an agreement he had signed, it was agreed that “failure of Synergy Holdings Inc to present to the Government of Guyana a valid performance bond from an acceptable institution to the value of 10 per cent of the contract price on or before January 10, 2012 will result in the immediate termination of the contract.”


A claim by the government did not mean that the insurance company would automatically pay, but that it would have to carry out its investigations, as is done in all cases of persons making a claim.


Motilall, following the announcement of the termination of the contract with Government, had claimed that he was owed in excess of US$1M.
Winston Brassington, the Head of the National Industrial and Commercial Investments Limited (NICIL), who had played an integral role in the project had said that the government received what it paid for.
“…Government has received value for money based on the work completed,” he had said. Brassington had said that the government retained 10 per cent of all valuations.”


He said, too, “The Agreement for Completion to the contract with Synergy, executed in December 2011, provided certain additional safeguards, including assigning the rights to the equipment to Government.”


Hand-in-Hand, in an official announcement following the termination of the contract, had stated that “the position of an insurance company with regard to any insurance policy or claim is strictly confidential and would not be disclosed by the insurance company unless required by law or legal process.”


The insurance company had also stated that “If a claim is made under a performance bond, it goes through our claims verification and investigation process…This process is performed in respect of each and every claim regardless of size.”


Large claims are submitted to the Board of Directors of Hand-in Hand for its consideration.

FM
Originally Posted by TK:
Originally Posted by baseman:

TK, you are filled with envy and bitterness.  I don't understand as you would not return to Guyana anyway even if the PNC/AFC wins.  Why the hatred, it mystifies.

 

I guess the oligarchy thread must be making the exploiters and the representative of the exploiters uncomfortable. You see some of us did okay all on our abilities and have no reason to envy others who are clubbing and scheming to control the people's resources. What you interpret as bitterness is just an expression of our duty to repay those folks in the motherland who gave us a free education. 

Your interpretation of your duty is to repay the gratitude of the nation by re-imposing the PNC on the backs of the people.  The Guyanese people will decide that anyway as you will never return to fix any problems.  The majority of Guyanese don't share your position.

FM
Originally Posted by baseman:
Originally Posted by TK:
Originally Posted by baseman:

TK, you are filled with envy and bitterness.  I don't understand as you would not return to Guyana anyway even if the PNC/AFC wins.  Why the hatred, it mystifies.

 

I guess the oligarchy thread must be making the exploiters and the representative of the exploiters uncomfortable. You see some of us did okay all on our abilities and have no reason to envy others who are clubbing and scheming to control the people's resources. What you interpret as bitterness is just an expression of our duty to repay those folks in the motherland who gave us a free education. 

Your interpretation of your duty is to repay the gratitude of the nation by re-imposing the PNC on the backs of the people.  The Guyanese people will decide that anyway as you will never return to fix any problems.  The majority of Guyanese don't share your position.

 

 

Me Fada seh after he read this post, where they found a Gadaha (donkey) like Baseman from.

 

No body want to impose nothing on Guyana.

 

When the people vote next time they will kick the PPP so far that even baseman will have to run miles to find them.

 

Then we gun jail all them ali baba tieves.

FM
Originally Posted by Devindra:
Originally Posted by baseman:
Originally Posted by TK:
Originally Posted by baseman:

TK, you are filled with envy and bitterness.  I don't understand as you would not return to Guyana anyway even if the PNC/AFC wins.  Why the hatred, it mystifies.

 

I guess the oligarchy thread must be making the exploiters and the representative of the exploiters uncomfortable. You see some of us did okay all on our abilities and have no reason to envy others who are clubbing and scheming to control the people's resources. What you interpret as bitterness is just an expression of our duty to repay those folks in the motherland who gave us a free education. 

Your interpretation of your duty is to repay the gratitude of the nation by re-imposing the PNC on the backs of the people.  The Guyanese people will decide that anyway as you will never return to fix any problems.  The majority of Guyanese don't share your position.

 

 

Me Fada seh after he read this post, where they found a Gadaha (donkey) like Baseman from.

 

No body want to impose nothing on Guyana.

 

When the people vote next time they will kick the PPP so far that even baseman will have to run miles to find them.

 

Then we gun jail all them ali baba tieves.

Tell yuh fada, he stupidyness fall pun he son.  Yuh muma muss be crying, she marry waan stupidy man and geh waan stupidy son. 

FM

Guyana Marriott costs three times more than Jamaica

 

JANUARY 6, 2013 | BY  | FILED UNDER NEWS 

 

-   Government remains mum on investors
Quick Facts
·       Jamaica project – US$23M versus Guyana project US$58M
·       Average cost per room in Jamaica – US$176, 923 verses Guyana cost US$294, 416
·       Guyana’s project cost is 152 per cent more than Jamaica
·       Jamaica project is privately funded (private equity) versus GOG investment


Full disclosure on Jamaica project, little disclosure on Guyana project

Construction cost of the Guyana Marriott hotel is more than three times the comparative cost of a Jamaica Marriott.


The cost for constructing the Guyana “Marriott” Hotel and Casino is projected as at almost US$60 million, while the Jamaican project has been announced at US$23 million. Guyana projects to build 197 rooms while the Jamaican project is 130 rooms.


Using the Jamaican cost, the comparative cost for Guyana project should be in the vicinity of US$35 million.


Taking the average cost per room, if one were to use the overall cost in Jamaica and divide it by the projected number of rooms, it would mean that the cost per room is US$176,923. The comparative price in Guyana should be the same. But, Guyana is building a room for US$294,416.


International construction companies peg an average cost for a 130-room hotel at US$22.8 million which matches the Jamaica project cost. According to one analyst, “Guyana defeats logic in its projection of costs on its projects.”


The Guyana “Marriott” project should be cheaper than a comparative Jamaican projects for many reasons including the low labour cost and the free land. It must be noted that the Jamaica cost includes the cost of land whereas in Guyana the land is Government-owned and therefore would be free to the Government project.
Despite pressure by opposition parliamentary parties and a Parliamentary motion to halt Government funding for the project, the government is stubbornly pushing ahead with the project.


With existing hotels in Guyana struggling to fill their rooms, it is strange that government is insisting that the Guyana “Marriott” hotel is viable, but it is refusing to make public the studies which justify the project.
The government is so far using tax dollars to fund the project. It has already handed over US$10million (G$2 billion) to SCG Shanghai Construction Group International (Trinidad and Tobago) Ltd, which was awarded the contract to build the hotel.


Private investors are expected to contribute US$27 million.
The government has some special arrangement that guarantees the private investors that they would get their money if the project folds.


So, if in a scenario where the project fails and the value of the property depreciates to a value below what the investors have plugged, then the investors will get back their money, and there would be nothing to return to NICIL. Taxpayers’ dollars would go down the drain.


The government will participate in the project, by way of equity, in the sum of US$4 million. This will be committed through NICIL, one of the investment arms of the government which holds its assets.


The equity contribution determines the government’s strength in Atlantic Hotels Incorporated – the company created to see the project through. As it stands, the government is currently the sole shareholder in the company.


However, apart from the equity contribution, financing for the project would also come from “subordinate loan stocks” of US$15 million invested by NICIL.
Adding the US$2 million, NICIL will end up spending in development costs for the project, including design and other preliminary studies altogether, US$21 million into the project.


So, in total, the amount of money the government is pushing into the project is just about what the Jamaica hotel project is costing, and just about what it should cost in Guyana to complete the project, industry experts say. The additional US$40 million remains a mystery to everyone.

FM

The tragedy of NICIL – Act 1

 

Posted By Christopher Ram On January 6, 2013 @ 5:07 am In Features,Sunday | 

 

Introduction


If NICIL – the National Industrial & Commercial Investments Limited – was a play, it would be one that challenges Othello and King Lear for the dubious distinction of saddest tragedy ever written.  And this is how the dramatis personae would be introduced:


Chairman of the Board: Dr Ashni Singh has the distinction of reporting to himself; credit for the undermining of the last vestiges of confidence in public accounting; lead authority on the use and mostly abuse of the Consolidated Fund and its offspring the Contingencies Fund; and credit for the largest financial sector failure under his watch;

 

Director:  Dr Roger Luncheon, who thinks running a government and country is an opportunity to display verbosity and jest; who has merrily led the country’s National Insurance Scheme to the brink of the cliff and then casually denies reality; and who cannot distinguish a government company from a private company;

business page

 

Executive director: Winston Brassington, who has been the architect or centre of almost every concoction or government initiative in the past fifteen years – the Queens Atlantic Investment Inc and its illegal tax holidays (later accepting the assignment to teach a private sector icon about the country’s tax laws); railroading the most costly financial package in setting up the Berbice River Bridge Company Inc and inducing and bribing investors with generous tax incentives; and the longest transitioning from the public sector to the private sector in Guyana’s history;

 

Auditor General: the benign Deodat Sharma, who moves from the stream of auditing (or not auditing) government transactions to the ocean of auditing where statutes on taxation and governance rule; where familiarity with deferred taxation and ever-changing IFRSs challenge the most seasoned accountants; who audits some of the country’s largest (government) companies in accordance with the Companies Act 1991 which does not recognise him as qualified to do such audits;
Regulators: such as the Registrar of Companies who was frightened off from demanding annual returns from the company for close to twenty years; the Commissioner General of the Guyana Revenue Authority who has not been able, for more than twenty years to collect a penny of Corporation Tax from Dr Luncheon’s “private company” despite several billion dollars of profit before taxation; or Property Tax despite the company owning at various times some of the most valuable state assets; or Capital Gains Tax despite the company acquiring premium assets at nil value and disposing of them at market value (except in the case of some friendly sales); and the national accounting regulator who has sat on two complaints for the equivalent of one year, unable or unwilling, maybe because the financial interest of its members, to pronounce on alleged egregious breaches of ethical and accounting rules and the Companies Act.

 

Making hay of delay


Apparently the Institute, applying a logic best understood by them only, decided to treat with the two complaints sequentially. From follow-up enquiries on these complaints, there appears some equivocation or evasion on whether or not this approach was reversed following stalling tactics employed by counsel retained by Ms Gitanjali Singh to deal with the complaint against her on the fundamental question of conflict of interest. After all, more than Ms Singh’s conduct is at stake here and it was no surprise that she resorted to Senior Counsel.

 

Minor players whose names or faces are supposed to lend credibility to NICIL: These include former Chairman and Minister of Finance Mr Saisnarine Kowlessar who would hardly have suspected how the company would come to define and represent some of the very values he represents; Mr Geoff DaSilva, Head of Go-invest, Ms Sonya Roopnauth, Budget Director and Ms Marcia Nadir-Sharma, NICIL’s Company Secretary, ever ready to sign corporate documents and defend the most offensive of corporate practices.


Ms Nadir-Sharma we recall was on television in September 2012 on the NCN’s outstandingly ironic debate on corruption, vociferously denying that NICIL had been in violation of the Companies Act and then rushing just over one year later to sign off on the statutorily mandated directors’ report for nine years – 2002 to 2010 inclusive – bearing no date but only the month:  November 2012. Consequently, what NICIL and its directors could not and did not do in years could suddenly be done in just two months, a demonstration of political expediency trumping the law and governance. It is probably more than idle speculation that NICIL might have been taking advantage of the craven slothfulness of the Institute of Chartered Accountants which has delayed any consideration of a number of issues on the financial statements of the company and the conflicts of interest between the company and the Audit Office.

 

The plot


More important to the players however is the plot to take an entity established by the PNC government of Desmond Hoyte to oversee the privatisation process and make it in an instrument of circumventing the Constitution and other laws of Guyana. More specifically, it ensures the ignoring of Article 216 of the Constitution that requires all government revenue to be placed in the Consolidated Fund and bypass Article 217 which requires parliamentary approval for all public expenditure. The plot is devilish in its simplicity: vest state assets in the company which it then sells and uses as its own money to do as it pleases, whether to develop Pradoville 2, divert sewerage or mismanage road contracts or build a hotel.

Sitting in the pit of the  theatre of the absurd are the politicians, including the main opposition party APNU, demonstrating a failure to understand or appreciate the deviousness with which their concerns over NICIL and other financial issues have been circumvented, and announcing in late 2012 that the government had become “more accountable”; the professional class more concerned about their economic well-being or about being victimised for their courage rather than standing up and speaking out for the financial well-being and fiscal rectitude of the country; and the public bewildered and bemused that the kind of maladministration for which NICIL has become a poster child continues to this day.

 

Financial summaries


Against this background Business Page commences a review of the financial statements and directors’ reports of NICIL for the years 2002 to 2010, the last year for which annual reports have been tabled in the National Assembly by Dr Ashni Singh. To carry out this function Dr Singh seamlessly changed hats from being the Chairman of NICIL to that of Minister of Finance. Here is a summary of the financial statements of the company – not the consolidated accounts of the group – for the ten years 2001 to 2010 as disclosed by the audited financial statements.


Statement of financial position
   2001    2004    2007    2010    
G$ M    G$ M    G$ M    G$ M    
Non-Current Assets                        4     3,206     3,578     3,553
Current Assets                                                                            0     3,567     3,834     4,840
Total Assets                     4     6,773    7,412    8,393     

Capital & Reserves                                                                       (52)    5,214     5,300     4,924
Non-Current Liabilities                                                                  -             2        133        289
Current Liabilities                56     1,557     1,979     3,180
Total Equity & Liabilities                                                     4     6,773     7,412     8,393   

Statement of the Comprehensive Income
2001 to 2010    
G$ M
Revenue                                 13,081  
Profit Before Taxation                                   8,599
Taxation                                                                                                                               (473) 
Profit After Taxation                                                                                                      8,126 

Statement of Cash Flows
    2001 to 2010    
                                     G$ M    
Investing Activities  
Acquisition of Investments                         (4,401)
Acquisition of Property, plant& equipment                                                          (2,321)
Disposal of Investments                             2,065
Proceeds from Disposal of Property, plant & equipment             990
Movement in Investments                                                                                                  222
Reclassification of fixed assets                         29  
Net Cash flows from Investing Activities                                                   (3,415)   

Financing Activities
Prior period adjustment                                                                                                            (56)
Restatement to reflect unrecorded assets                                                                      3,381
Dividends Paid                                                                                                                          (7,577)
Grant Received                                 2
Revaluation Reserve                                                                                                                 1,044   
Net Cash flows from Financing Activities                                                         (3,205)    

 

However, before addressing and analysing these I will use next week’s column to conclude the twenty year review of the banking sector in Guyana which I started last month. I do apologise for the untidiness of not completing that review before beginning the examination of NICIL’s financials, but my own efforts at data collection and research were less efficient than I had anticipated.

FM

Nokta’s noctiluca and Anthony’s antonomasia

 

JANUARY 16, 2013 | BY  | FILED UNDER FEATURES / COLUMNISTSFREDDIE KISSOON 
 

The lead letter in Monday’s edition of KN described a situation where a citizen by the name of Shyam Nokta (the son of a member of the executive committee of the PPP) has a private company that does environment and climate research. At the same time, he is a consultant with the Office of the President (OP) to which he applies for consultancies in the same area.


We don’t have to even mention for one second that this is a conflict of interest. But a conflict of interest can exist on paper only. Let me explain. Let us say that I work with the President and I have a printing company that tenders for Government printing jobs. Suppose I never received a successful tender, then it means that a conflict of interest never occurred.


So is Shyam Nokta in a conflict of interest? Only if he receives contracts from OP. It is for Nokta and President Ramotar to deny that any contracts were offered to Nokta. If there is silence the opposition should act; but not only the opposition, civil society too.


This Nokta conflict of interest thing surfaced two years ago and not even one citizen picked it up. Times like these my mind focuses on that defunct body called the Guyana Human Rights Association (GHRA).With a large office on Hadfield Street, I wonder who funds that outfit which a man and wife have headed for the past thirty years and to which no one goes to complain and from which we don’t hear about any investigation into human rights violation. More on the GHRA in future columns.


Now we have a new kid on the block, Transparency Institute (TI).
Does Transparency Institute see an impropriety in the Nokta connection with OP? If yes, it must publicly state so. I am now calling on Transparency Institute to make a statement on this issue. This column’s support for TI will stop in the future if TI does not see the wisdom of commenting on this intriguing situation. Guyanese cannot go on watching organizations telling them that they have their interest at heart, but choose to be diplomatic, evasive, subtle or even silent when wrongdoing is right in front of our eyes.


It may not only be Shyam Nokta who may be in a conflict of interest cocoon with OP, but also the son of another member of the PPP executive whom I am told has a private business and gets a lot of OP contracts for internet and other cyberspace work.


Not to mention, he is very wealthy, with the expensive purchase of prime real estate – not too far from the Guyana Police Force – from a foreign diplomatic mission in Guyana.


I keep telling individual members of the opposition parties that I associate with, that with each passing day, the enormity of wealth possessed by the PPP leaders, their second-tier cadres, their third level activists, their devout supporters and those generally associated with the PPP is going to be so widespread that it will be tantamount to buying out Guyana.


Let us move from Nokta’s noctiluca, to Anthony’s antonomasia. Mr. Ruel Johnson has publicly stated that there are indications that Minister Frank Anthony is planning libel action against him.


If this is so, then I hereby offer free legal advice to Frank Anthony. I hope Mr. Anthony takes it and refrains from seeking wisdom from one of his colleagues, a lawyer that rose from being an obscure attorney in landlord-tenant cases and then fell into infamy by publicly exclaiming that “I is a man that is do illegal things.”
Here are my wise words to Anthony. When a President, Prime Minister, Army Chief, Police Chief, or Cabinet Minister sues another citizen for libel, the defence lawyer automatically puts the plaintiff’s (the person who sued) integrity in the witness box.


All kinds of past decisions, past mistakes, past controversies are aired in court, because office-holders like Presidents, Prime Minister and Ministers are powerful people whose policies and judgements may have twists and turns that the defence lawyers will want to highlight in court.


If Minister Anthony thinks that he is going to sue for libel and not be made to feel the heat in the kitchen, he is wrong. The first thing that will run through the mind of the defence lawyer is “I am going to deal with this guy, I have the evidence.”
It has been reported in the newspapers  by Malcolm De Freitas, of the Theatre Guild that the Carifesta  Secretariat still owes the Guild over a million dollars. Weren’t you the Minister in charge of Carifesta? Is the money paid as yet? Just asking!

FM

The good guy versus bad guy theory is sickening nonsense

 

JANUARY 20, 2013 | BY  | FILED UNDER FEATURES / COLUMNISTSFREDDIE KISSOON 
 

Mr. Ralph Ramkarran has written a Stabroek News column entitled, “The PPP’s enduring fears” in which every paragraph, from start to end, is a narrative on Guyanese history from 1950 to 2013. Guyana’s history is painted in a zero sum drama of the good guy, the PPP, haunted and hunted down by the bad guy, the PNC. This is a simple, written article in which the writer takes the unashamed position that from the fifties onwards, the PPP has been enduring the wrath of the PNC.


It is one of the most shameless, disgraceful, propagandistic, unpolished and senseless essays ever written on this country’s history. No Guyanese citizen with a proper education should let this crude description of this country’s contemporary history go unanswered.


Mr. Ramkarran traces the post 1950 evolution of the PPP and tells us that PPP since then has been locked in a battle to survive because of the relentless pursuit of a terrible, evil party that wants power, the PNC.


Before I reply, let me offer you his periodization schema of the PPP’s will to survive the repression of the PNC. Phase 1 – the suspension of the PPP Government in the early fifties and the Jagan – Burnham split. Phase 2 – the violent harassment of the Jagan Government from 1957 onwards. Phase 3 – the PNC’s partnership with imperialism (Ramkarran’s word) to destroy the PPP. Phase 4 – the PNC’s 28 years of rigged elections and oppression of the PPP. Phase 5 – PNC’s use of violence after each election from 1992 onwards to bring down the PPP Government. Phase 6 – the present alignment of the PNC with imperialism (again, Ramkarran’s word) which drives continual fear in PPP leaders.
Here is my point by point rebuttal of this abominable distortion of sixty years of Guyanese history.


1- The PNC and the PPP took opposing sides in the Cold War. Why not use the word Americans versus Soviets instead of imperialism. In 1950, twelve years before his government encountered difficulties with the Americans, Cheddi Jagan gave an interview to a QC magazine (Lictor) in which he praised the government and politics of the second most diabolical, evil human that history created, Joseph Stalin.


For Ramkarran, the Americans were imperialist. But the world knew that Stalin was far worse than any American president.


2 – In the sixties, Premier Jagan faced a popular uprising led by the urban working class, the business community and middle class East Indians. Their grievances were directed against a government they claimed was racist, anti-working class and hostile to private entrepreneurship.


To dismiss the popular struggle against Premier Jagan in the sixties as the machination of imperialism is not worth the paper it is written on.


3- The period of PNC rigged elections was derived from the same fear of oppression and domination that Ramkarran sees in the PPP. PNC leaders told the world that a free poll would result in an Indian domination of administration, state power and the economy, thus virtually reducing African Guyanese to nobodies in their own homeland.


Look at the PPP record since 1992 and we can clearly see, as David Hinds puts it – both groups were afraid of being dissolved by the other.


4- Post-election violence was not a simple act of PNC wickedness as Mr. Ramkarran wants us to believe. As early as 1994, PNC leaders were alarmed at widespread illegal purges of the public service and the wider state realm. Genuine ethnic fears fuelled the fire of post-election violence since 1992. While President Jagan earned the sympathy of the nation after he came to power in 1992, early warning signs of what PNC leaders in the fifties and sixties dreaded most terrifyingly were beginning to show all over Guyana. Look where we’re at in 2013. Were these PNC leaders right?


5- The PNC is not and has not been the demonic monster that Mr. Ramkarran makes this organization out to be. The PNC has produced the best president of this country, far outstripping the achievements of all PPP presidents. It was a PNC leader that accepted free and fair elections that brought the PPP to power.

 

6- The PPP is the political party that has been at the receiving end of imperialism’s (Ramkaran’s word) generosity. In 1992, the Americans facilitated the PPP into power and since then the PPP has faithfully adhered to the American-shaped economic programme carried out by the IMF known as structural adjustment.


7 – It may be possible that more PPP leaders have children and family connections with “imperialist” countries than the PNC’s.


Space does not permit further rebuttal of Mr. Ramkarran’s good guy versus bad guy nonsense. Suffice it to say, it is sickening and obnoxious, because it is such a barefacedly twisted account of our country’s history.


One last point – in my experience in living with both PNC and PPP Governments, the PPP has produced more corrupt, more immoral and less patriotic leaders. We need to the deconstruct word “evil.”

FM

Jagdeo shares out airwaves to friends…Bobby Ramroop has nine TV and radio channels Mirror newspaper gets five radio channels Deputy Permanent Secretary in Robert Persaud’s Ministry gets five too

MARCH 16, 2013 | BY  | FILED UNDER NEWS 

 

 

Just before he left office, former President Bharrat Jagdeo farmed out the airwaves for his friends, those close to the government and a few others, it was revealed in the National Assembly yesterday.

This action was an abuse of power, said one parliamentarian. Further, it was revealed that while the government has been inviting applications for TV stations, just a few more channels are available to be assigned.
Prime Minister Samuel Hinds revealed that Dr Ranjisinghi Ramroop, the man Jagdeo publicly declared to be his best friend, has Channel 28 and three other links to that station, which could effectively allow him to broadcast across the country.
Further, Hinds made it clear that the very month Jagdeo left office (November 2011) he, Jagdeo, gave Dr Ramroop five radio frequencies. The President acts as the Minister of Information and it is under his hand that licences are issued.
The Prime Minister was responding to questions posed by Cathy Hughes, Parliamentarian with the Alliance for Change. Her questions were sparked by mounting controversy over the granting of radio and TV licences, particularly to Ramroop and China Central TV.


Yesterday, Hinds said that China Central TV does not have a licence; that its programmes are broadcast on channels assigned to NCN.
Regarding new radio licences granted under Jagdeo, the Prime Minister revealed that the New Guyana Company Limited, which publishes the Mirror newspaper, and belongs to the ruling People’s Progressive Party (PPP) was granted five radio frequencies. The contact person for New Guyana Company Limited was listed as Dharam Kumar Seeraj, a Member of Parliament for the PPP.


In addition, a certain Telcor and Cultural Broadcasting Incorporated, was granted five radio frequencies. The contact person for that company was given as Mr Omar Lochan, who is believed to be a relative of Priya Manickchand, a senior government Minister. Lochan is listed as the Deputy Permanent Secretary of the Ministry of Natural Resources and the Environment, under Minister Robert Persaud.
Apart from those, in the month before he left office, Jagdeo gave one radio frequency each to other persons. These are NTN Radio (Anand Persaud), Rudy Grant, Wireless Connections (Maxwell Thom), Hits and Jams Entertainment (Rawle Ferguson), Alfro Alphonso and Sons Enterprise (Alfro Alphonso), Haslyn Granham and Little Rock Television Station (Rockliffe Christie).


In December, 2010, Jagdeo also granted two close associates of the PPP permission to broadcast television signals on the 2.5 GHz band, which allows for cable TV operations and internet-related services.


These persons were Vishok Persaud, the son of longstanding PPP stalwart Reepu Daman Persaud, and Brian Yong, who mounted the PPP platform in 1996.
Regarding television stations, the Prime Minister said that only six more television stations can be assigned using current formats for television broadcast in Guyana.


Hinds said that determining the availability of channels for broadcasting depends on many factors. These include transmitter power and specifications, height of antenna, and location of proposed transmitters.
He said that given the propagation characteristics of sound broadcasting signals in the medium frequency (MF) and high frequency (HF) bands frequency availability is not based on national considerations only. International frequency usage and results of international notification and coordination are some of the considerations that would determine frequency availability, Hinds stated.
Frequency usage in the very high frequency (VHF) and ultra high frequency (UHF) bands etc., in border areas, would also be informed by coordination with neighbouring countries, the Prime Minister claimed.


He said that to give a rough approximation (from a radio frequency standpoint) in the Georgetown area (the area with the highest demand), at least 10 more channels in the VHF band (FM sound broadcasting) can be assigned.
One more VHF channel can be assigned for television broadcasting and in the UHF band approximately five channels are available for assignment for television broadcasting.


However, he said that countless other radio and television channels could be made available when there is a change in broadcasting formats.
According to the Prime Minister, if Digital Terrestrial Television Broadcasting (DTTB) is introduced here, there is the potential for “hundreds of television and sound feed programmes/channels.”

 

He said DTTB is now common in many countries worldwide and the analog format is expected to be brought to an end worldwide in the not too distant future. The switch-off date for analog TV signals is June 17, 2015, for many European and African countries.


Guyana television broadcast is still analog (a broadband taking up much frequency space) .This country will be following the transition to DTTB, Hinds said, but a date has not yet been set.
He said that this analog to digital TV broadcasting switchover, while offering many benefits to viewers (including the capacity for additional television feeds/programmes), will introduce a very different scenario and the National Frequency Management Unit is currently working on this issue.

FM

Dem boys seh…Jagdeo people preparing fuh defend he

MARCH 16, 2013 | BY  | FILED UNDER DEM BOYS SEHFEATURES / COLUMNISTSNEWS 

 

 

De bandits get ketch again. And is not de regular bandits who police does hunt. De police frighten this set because all of dem is big ones. Dem is de people who hold Government office. De main one is Jagdeo and he laughing all de time. He think he smart everybody when he share out dem radio licence.


De man select de people who he had to give because he want to shut down all who does criticize he and de government. He decide that de best way to mek sure that only he voice people hear was to give he friends de radio station.


All who is he friend and powerful he give five channels suh dem can send dem signal right across de country. He know that de private media can only reach a certain section. Newspaper got de reach but is not everybody can read. But everybody can hear. And this is why Jagdeo mek sure that he friends and he party get de radio.


Is only Donald couldn’t see that because he eye fasten under de cow tail. But he can hear and he now hearing how people feel bout de radio channel wha Jagdeo give away. He now know why people never trust Jagdeo. He sit down wid Hoyte and promise that nobody gun get radio or TV till dem set up a broadcast authority.
Hoyte lef de meeting but he seh that he don’t think he can trust Jagdeo. Hoyte now turning in he grave. Before he dead people beg he fuh trust Jagdeo and he try. That is why he dead. He try fuh do de impossible.


Jagdeo do exactly wha he promise he wouldn’t do. He share out radio and TV licence but he share to he friends and he family. De few people who like a sport, he give dem one one fuh broadcast in dem village. And dem smile. He friends can broadcast to de whole country but not dem other people who look like Hoyte.
And Donald ain’t see this.
Talk half and light fire under Donald tail

FM

BK sand mine faces objections at Yarrowkabra

 

Posted By Staff Writer On March 16, 2013 @ 5:23 am In Local News |

 

The Environmental Assess-ment Board (EAB) will on Monday hold a hearing at Yarrowkabra on the Linden-Soesdyke Highway to determine whether a proposed sand mine project by BK International will affect the operations of Bulkan’s Timber Works and whether there is need for an Environmental Impact Assessment prior to giving the go ahead.

 

Howard Bulkan, the owner of Bulkan’s Timber Works, told Stabroek News that if the sand mine is located next to his business, then he would have no choice but to shut down and send workers home.

Howard Bulkan

Howard Bulkan

 

Speaking to this newspaper last night, Brian Tiwari of BK International said he saw no problem with Bulkan’s Timber Works since the sand mine operation will be located some 2,000 feet away. He said he believed the company is just out to create mischief.

Bulkan said that he wrote to the EAB on December 18, 2012, requesting that there be a hearing to determine the validity of his complaint against the proposed development next to his business. He said that after being asked by the Environmental Protection Agency (EPA) to resubmit his application following his first submission, he was able to convince the EAB to arrange a hearing. This will take place on Monday at 4:30pm.

 

In a letter to Executive Director of the EPA Dr Indarjit Ramdass, Bulkan’s Timber Works and Superior Shingles and Wood Products through attorney RN Poonai raised concerns about the safety of workers and equipment and the effects on persons who depend on these companies for a living.

 

“The proposed project site borders the old glass factory at Yarrowkabra out of which the above mentioned companies operate. This compound contains many old, tall steel structures (water towers, rusting building frames, silos, etc) given the nature of the previous manufacturing entity that operated here. My clients engaged the opinion of an engineer who advised that based on the angle of repose of sand and the consistent volumes of rainfall that occur in this area, the minimum safe distance that the edge of the sand mine should start is two and a half times the distance of the intended depth of the mine away from the any given point in the compound of my clients,” said the letter from Poonai.

 

“Given the physical properties of sand, my clients are very concerned about the safety of their approximately 100 employees should any of these structures become undermined and collapse.”

 

The letter also raised concerns of possible damage to highly expensive and sensitive wood working equipment and of the adverse effects of sand particles blowing into the factories, on the manufacturing process and the products.

Brian Tiwari

Brian Tiwari

 

The attorney’s letter also pointed out that members of the Yarrowkabra Charcoal Burners Association – an organisation comprising mostly single mothers – rely on the free raw material provided by Superior Shingles and Wood Products to earn a living. “The granting of a permit to mine sand has the real potential to put these women out of work and I believe their concerns should be addressed…,” Poonai said.

 

The letter said too that given the nature of the area, an Environmental Impact Assessment should be done to ensure that the project would not adversely affect the natural vegetation and wildlife. The letter was copied to Tiwari and Dawn Braithwaite, Chairperson of the Yarrowkabra Charcoal Burners Association.

Bulkan said his business not only supports the women in the association and the factory workers but also small loggers out of Linden who supply Wallaba logs for the operations.

FM

Breaking News…Brassington buys 50,000 shares for NICIL, and 2.25 million shares in brother’s name

MAY 18, 2012 | BY  | FILED UNDER NEWS  

http://www.kaieteurnewsonline....-over-of-gncb-trust/

 

NICIL take over of GNCB Trust


Executive Director of the National Industrial and Commercial Investments Limited (NICIL) Winston Brassington, just one day after challenging the opposition members to prove the allegations of corruption against him, is again the centre of another scandal.


This time, Brassington is coming under fire for a transaction that he might have initiated in the name of his brother, Jonathan Brassington, for 2.25 million shares in Hand in Hand Trust Corporation.

 

Brassington was the head of NICIL when it acquired the Guyana National Cooperative Bank (GNCB) Trust. NICIL then sold the GNCB Trust to Hand in Hand Insurance Company.

 

On October 13, 2003, the insurance company passed a special resolution to change the name of the new asset to Hand in Hand Trust Corporation. NICIL, still headed by Brassington, became a major shareholder in the company.

 

NICIL held 250,000 shares in the Trust; the majority of shares was held by Hand in Hand Fire Insurance Company.
In 2009, by order of a resolution passed by the Board of Directors at Hand in Hand Trust Corporation, “the Board authorized an increase in the Trust Corporation Share Capital from $250M to $750M and further authorized the issuance of Preferred/Ordinary Shares to cover the increased Share Capital.”

 

This meant that the Trust increased the volume of shares from 2.5 million to 7.5 million at $100 per share. Immediately, Jonathan Brassington bought 2.25 million shares for $225 million. This purchase gave him a one-third ownership in Hand in Hand Trust Company.

 

By September 2009, Winston Brassington who still represented NICIL as a major shareholder in the Trust company, signed for these shares on behalf of his brother who was at the time and still remains overseas. Jonathan Brassington became the second largest shareholder in the Trust company after Hand in Hand Fire Insurance Company which held just over three million shares. At the same time Brassington, acting on behalf of NICIL, increased its share holdings to 300,000.


Alliance For Change (AFC) Khemraj Ramjattan has labeled this transaction as another in a string of incestuous dealings. He says, “Winston Brassington signed a special resolution on behalf of a Jonathan Brassington who some time in 2009 became the owner of 2,250,000 of the shares in Hand-in-Hand Trust Co. Inc….With this 45 per cent take of the share issue in 2009, a Brassington became the second largest shareholder in a Brassington-privatised company…This is not only corruption: it meets the test of fraud.”


Ramjattan says that what is even more alarming is the fact that this transaction took place mere months before the company plugged a multi-million-dollar investment in the Berbice Bridge. This investment has since been described as a ‘cash cow’ for its investors. “The same Hand-in-Hand Trust is part of the Group which invested hundreds of millions of dollars in the Berbice Bridge Company. Winston Brassington was the financial architect of this project.”

 

The AFC Chairman in responding to Brassington’s challenge to prove corruption says that, “I would advise Mr. Brassington to consult with an attorney before making any further statement to the press…What he is doing, over and above misusing moneys that belong to the Consolidated Fund and therefore the people of Guyana, goes beyond financial incest; it goes beyond corruption: it is financial fraud.”


Ramjattan is also questioning why Brassington is now setting a condition for his resignation when his resignation had been announced several months earlier.
“I hope that Mr. Brassington has not changed his mind so that he can prevent access to the files and records that will conclusively establish the mounting evidence of fraud, corruption and illegalities surrounding NICIL which has surfaced with every passing day.”

FM

Jagdeo orchestrated plot to take over airwaves

MARCH 18, 2013 | BY  | FILED UNDER NEWS 

 

 

…grants cable licences to two buddies

…Vishok Persaud, Brian Yong set up shop before licence was granted 
Apart from shocking disclosures that President Bharrat Jagdeo handed his friends and associates and political party multiple radio and TV licences, the granting of cable licences has shed light on a plot to snap up the entire telecommunications sector.
He granted cable licences to Vishok Persaud, the son of PPP stalwart Reepu Daman Persaud and to Brian Yong, a very close confidante.
The granting of cable licences allows the licencees to offer what in the United States and other countries is called triple play—internet, television/radio and telephone services.


Even without being coupled with cellular service Cable on the 2.5 GHz Band is a virtual monopoly in the telecommunication sector for whoever owns the licence. When a consumer accesses Cable with the triple play then regular landline services can become irrelevant.


The cable by itself monopolises the interactive flow of information and that is what Jagdeo has given to his two buddies.
Searches reveal that Jagdeo handed out the cable licences to control the electronic media.


Prime Minister Samuel Hinds, Thursday, disclosed that the former President granted the two persons cable licences on the 2.5 GHz band in December 2010. These were E-Networks, under Vishok Persaud, the son of Reepu Daman Persaud, a stalwart of the ruling People’s Progressive Party; and Brian Yong, who Jagdeo invited to mount the PPP platform in the 2006 elections.

Bharrat Jagdeo

 

Both Vishok Persaud and Brian Yong are known to be close to Jagdeo and Winston Brassington, the man who manages Government’s investments.
The service offered by the two men, such as 4G requires both the availability of licensed airwaves – also called spectrum – from the government, and considerable private investment in infrastructure.


The revelations by the Prime Minister show that Jagdeo granted licences to facilitate the development of the already established business of his friends.
In early December, 2010 Persaud introduced his company’s WiMax 4G Network, opening up a wireless digital communication system to provide broadband wireless access, satellite services providing internet access and voice services to miners and companies in the interior, and other services.
This means that Persaud launched his service the very month that he was granted a licence. From all indications Persaud moved to set up his infrastructure knowing that he was assured of a licence from Jagdeo.


In normal circumstances, a person would await the granting of a licence before investing in infrastructure.
The case of Persaud resembles the scenario under which Yong was granted his licence. Yong received his licence in December, 2010.
He too started developing his business with the assurance that he would get a licence.

Vishok Persaud

In January, 2009, Yong’s company signed a deal with O3b Networks, the developer of a new fibre-quality, satellite-based, global Internet backbone.
At that time, Yong boasted that “with less than 1% penetration of broadband Internet usage in Guyana, we feel we have a moral obligation to provide all Guyanese Internet access for educational, commercial, and medical purposes.”
Sure enough, Yong ventured into the business offering broadband satellites and cable TV and was granted his licence.


The 2.5 GHz band, under which Persaud and Yong were licenced, is currently used for electronic news gathering services (including television outside broadcasts). Spectrum in this band is being relocated worldwide to meet increasing demands for wireless broadband services.
Using the provisions of the 2.5 band, a number of initiatives can be undertaken, such as the rapid, unplanned deployment of links to cover breaking news events; planned use of group links employing a variety of techniques to provide specialist coverage of particular events; and electronic field production, which could be used to provide elements of a television production.
In other words, these two businesses could dominate the mass media landscape of the entire country.

 

Brian Yong

 

 

FM

Who says that Jagdeo cared about all the people?

 

MARCH 17, 2013 | BY  | FILED UNDER FEATURES / COLUMNISTSMY COLUMN 

 
Radio is perhaps the most convenient of the means of communication. Since its somewhat accidental discovery it has taken the world by storm. Drivers find it a convenient companion as they travel, people in remote lands keep abreast of developments in every corner of the world through radio and most of all it allows for the easy dissemination of information.


Not so long ago people in Guyana kept abreast with the rest of the world through radio. Many were the nights when neighbours gathered around the single radio around for such simple delights of soap operas, and the pop tunes. The information that most people wanted were the announcements of deaths and the messages.


The sports fanatics followed every detail, be it boxing or cricket. The people at the other end had a command of language. They had to be very good to transmit the images they were seeing through the use of words. Radio made for the development of people.
I shall not attempt to examine the other uses because for many today, they are ancient.


It is true that radio is not as pervasive as it once was. The telephone, particularly the cellular phone which has become smarter to the point that it is a radio, a telephone and an encyclopedia all in one, has taken the pride of place. Of course the phone is much more, not to speak about its role as link for social gatherings.
But radio is still the easiest of the mass communication systems. Because of its capability to transmit messages over long distances to a multitude of people at the same time it became a worthwhile tool for politicians and entertainers alike.
Guyana had many radios. There were the so-called ham radios which allowed private operators to listen to chats and other information from around the world. The first news out of Grenada after Hurricane Hugo came via ham radio. But I am getting ahead of what I really want to look at. Guyanese get almost all of their ready news from radio.


In other countries people are informed of traffic jams, weather conditions, and the news by radio as they drive. When planes went into the World Trade Centre, radio gave those on the road immediate information and probably saved more lives because those who would have been in the vicinity a few minutes later, diverted.
In Guyana, people are provided with what passes for news on television and most get these pieces of information at nights, hours after the event would have happened. The state radio, because of its misconceived role, provides tidbits on what the government wants to be known on the hour. But they cannot compete with the private media.


It took decades, but the government has come to recognize that its state-controlled media facilities are no match for the private media who, though few, do make an impact on the people of the country. It is widely believed that the private media had so significant impact on the nation that they influenced the final outcome that saw the government, for the first time, having a parliamentary minority.


During his tenure as President, Bharrat Jagdeo recognized that he had an uphill task to maintain his grip on information. Many believe that he was emulating Forbes Burnham who had an ubiquitous presence in the country by way of the only daily newspaper and the only radio station. The nation, for the most part heard what he wanted them to hear.


Desmond Hoyte opened up the media and before he died there were many private newspapers and television stations. More voices were heard with different messages. However, the most pervasive of them, radio, remained in Government hands.


Jagdeo had a television station controlled by Robert Persaud, three others by sympathisers of his party, but he still had to wonder at the power of the private media. The result is that he got a newspaper going, but that is still to get off the ground.


Before he demitted office he decided to liberalise radio. This decision was hailed until Jagdeo kept his promise. He picked his friends, and close associates to own these new channels. Again he wanted to ensure that his message and that of his party reach everyone at the same time. The private media would have to catch up some twelve hours later and Jagdeo, being a clever man, knew the advantage of time.


It did not matter that there were numerous pending applications by people who seriously wanted radio to give people something other than government propaganda. Jagdeo handpicked those who would get radio.


The insult to those who had applied more than a decade ago was that Jagdeo’s best friend, Dr Ranjisinghi Ramroop, got five channels. Jagdeo’s party got five more and Robert Persaud got five. What does this tell us? Jagdeo wants to control the airwaves and he calls this acting in the best interest of the people.


Chandra Narine Sharma who was moved to a television channel that automatically accommodated a radio frequency was actually told that he could not advertise his radio. Anthony Vieira, who was sick of the sole state radio station, opted to start his broadcast. The result was that the government swooped down on him and seized his radio.


Vieira moved to the courts and found that he had a right to broadcast. That is a landmark decision and I am surprised that no other individual has opted to capitalize on that court ruling. Had they done so this mass allocation of radio stations to friends and family would not have occurred.


There is the contention that the National Frequency Management Unit, which is responsible for allocating the spectrum, would have deemed squatting illegal, and would have moved against the radio. But Cabinet Secretary Dr Roger Luncheon actually told the nation that the NFMU is a rubber stamp. He said that it can never tell the government not to or to refuse any move by the government.


Desmond Hoyte knew about the power of radio and he got Jagdeo to agree that nothing would be done until there was a Broadcasting Authority. Jagdeo turned his back on that promise to satisfy his penchant for nepotism.

FM

Media refuse to accept biased distribution of radio licences

MARCH 18, 2013 | BY  | FILED UNDER NEWS 

…Press Association calls for overseas intervention


Revelations that former President Bharrat Jagdeo farmed out radio and television licences to his friends and others close to the government just before the last elections have sparked widespread concerns and a statement of defiance from privately-owned media houses.
Yesterday, the Guyana Media Proprietors Association (GMPA) and Guyana Press Association (GPA) issued statements calling for an immediate reversal of the allocations.


Several private media houses and personalities who had applied for licences and are seen as critics of the government were bypassed by Jagdeo. The former President approved the licences as Minister of Information shortly before his constitutional term in office ended in November, 2011.


According to GMPA, the “lawlessness” must end. The body said that it is “appalled at the revelations in the National Assembly on the recent allocation of radio licences.”Three of the stations issued licences under Jagdeo have already started broadcasting.


GMPA said that the manner in which the allocations were made “flies in the face of freedom of expression. It will not be accepted. It would effectively limit objective voices. It smacks of deceit, duplicity, and downright discrimination. Effectively, then President Jagdeo breached the agreement between himself and Desmond Hoyte in 1997.” GMPA is convinced that there was deliberate bias in the process when Jagdeo refused to issue licences to the others.


“We demand the right to free and independent voices.”
Already, members of the GMPA have met to discuss the way forward.
Meanwhile, the GPA in a separate statement, said it is disturbed over what appears to be the unfair distribution of frequencies, weighed in favour of the governing party.

Media owners who were ignored.

The association yesterday called on overseas media bodies to intervene.
On Friday, the Association of Caribbean Media Workers (ACM), of which GPA is part, also said that it is monitoring the situation and is concerned. The association’s President, Wesley Gibbings, who is based in Trinidad, said that the ACM has been keeping an eye on the developments.  The body is preparing to issue a statement shortly.


“It is equally disturbing that the Government of Guyana is creating a media environment of monopoly ownership and control that leaves media workers limited options on employment and creative outlets for their skill and talent,” the GPA stated
An under-pressure government, with a one-seat minority in the National Assembly, was forced to disclose specific details of the licences granted following questions by the Opposition demanding answers.


GPA also pointed out that Prime Minister, Samuel Hinds, in releasing details of the allocation, did not explain why for over two decades there has been no national plan to allow for investment in the sector by Guyanese and CARICOM nationals.
It referred to recent disclosures that China’s CCTV was allowed to use a channel, reportedly allocated to the state-owned National Communications Network (NCN) under strange circumstances.


“The Guyana Press Association is also concerned that at least one TV channel has been farmed out to essentially carry international content from a foreign power that clearly does not bring employment or other tangible benefits to the Guyanese media fraternity.”
GPA called on the Government to correct the “obvious lapses” in the administration of the broadcast/telecommunications sector in the country.
“The Guyana Press Association would like to see the elected representatives from both sides of the House (the National Assembly) engaged with other stakeholders in the process to redress the deficiencies in the sector. 

 
“We encourage the involvement of Caribbean and Commonwealth media advisers in this task to ensure the equitable distribution of the resources of the electromagnetic spectrum that would redound to the benefit of all media workers and those involved in the creative industry.”


The granting of the licences to close friends and party members by Jagdeo is widely seen as a move by the party to further consolidate its control on the media.Following the ruling party’s loss of its control of the National Assembly, the private media was blamed.

FM

Mines body lending $3b to housing authority

 

Posted By Staff Writer On January 30, 2015 @ 5:30 am In Local News |

The Guyana Geology and Mines Com-mission (GGMC) has signed a loan agreement for $3B with the Central Housing and Planning Authority (CH&PA) which observers say transgresses the GGMC Act and would also violate the constitution.

 

A joint statement last night from the GGMC and the CH&PA said that following the submission of an investment proposal by the CH&PA in January 2015, the agreement was signed. The statement said that the proposal is for the investment of $3b to be loaned to the CH&PA for a period of one year and to be used for the development of the housing sector.

The statement seemed to have been hurriedly issued as a result of the two agencies becoming aware that the media was in possession of documents on the loan agreement.

The joint statement said that the Board of Directors of the Commission met and deliberated on the proposal submitted and it was noted that the interest rate being offered by CH&PA was 5% which was 3.2% more than what was currently being earned via the commercial banks and other investment options open to the Commission.

 

“At the level of the Board of Directors, it was agreed that the investment proposal was financially prudent and sound. In this regard, the Board agreed to the granting of the loan subject to the terms and conditions enshrined in the Loan Agreement and any additional guarantees required by the Commission”, the statement said. It did not say when the loan agreement was signed.

 

It added that “The CHPA project is pivotal to the realization of the Government of Guyana strategic target of allocating 30,000 lots under the Adequate and Affordable Housing Programme in order to maintain momentum in the provision of service land in several areas on the East and West Demerara.”

 

According to documents seen by Stabroek News, the Permanent Secretary in the Ministry of Natural Resources and the Environment, Joslyn McKenzie on January 19th, 2015 forwarded a draft of the loan agreement to the Chairman of the GGMC, Clinton Williams for him to review.

Earlier, the Permanent Secretary of the Ministry of Housing and Water, Emil McGarrell had forwarded the loan agreement draft to McKenzie and Minister of Housing and Water, Irfaan Ali for their review.

 

All public funds are to be accounted for through the Consolidated Fund and the relevant withdrawals made as per the appropriations act. This proposed agreement between the two agencies would run afoul of this and appears to be an attempt to expedite developments in the housing sector as Parliament is suspended and a budget for 2015 is unlikely to be presented soon.

 

Exclusively

 

The draft loan agreement states that the loan shall be used “exclusively for the specified purpose relating to Cabinet Decision CP (2015) 1:2:R titled `Proposal for the Investment of Three Billion Dollars from Guyana Geology and Mines into the Housing Sector”.

The agreement sets out that the loan shall bear interest at the rate of 5% per annum calculated on the reducing balance in quarterly arrears beginning on the last day of the first quarter. The principal amount of the loan together with all the accrued interest under the agreement is to be paid in full by the close of business on December 31, 2015. Sources say that the agreement would breach Section 10 of the Guyana Geology and Mines Commission Act which deals with the authority of the commission to make loans. That section specifies that the loan must pertain to the functions of the GGMC such as mineral exploration.

Observers say neither the CH&PA nor the GGMC has any business entering any such loan agreement and the move underscores concerns in opposition circles and the general public that with no Parliament in place there is a great risk to public funds in the period leading up to general elections.

 

The European Union recently withheld $5.8b in funds for Guyana for a number of reasons including the absence of budget oversight.

The government has been accused before of permitting agencies like NICIL to withhold sums that should be deposited in the Consolidated Fund and spending these monies unauthorisedly. The funds held by the Guyana Lotteries Commission have also been spent for many years without going through the Consolidated Fund.

 

Concerns had previously been raised about the GGMC expending funds on interior roads without these funds having been sourced via the Consolidated Fund.

In his column in the February 23rd, 2013 edition of Stabroek News, former Auditor General Anand Goolsarran had said that the government had transformed NICIL into a parallel treasury, retaining and using funds meant for the Consolidated Fund at the discretion of its directors in violation of the Constitution. Goolsarran said that in order to regularise matters at NICIL, it must be realigned to what it was prior to 2002 or alternatively its operations must be wound up.

 

He recommended too that it must be ascertained how much should has been paid over to the Consolidated Fund from 2002 to present, against what has actually been paid.

He also recommended an investigation and appropriate disciplinary action against the concerned officials, if it can be established in a court of law that there had been a violation of articles 216 and 217 of the Constitution.

 

The two articles provide for the establishment of the Consolidated Fund (Article 216) and set out instances for withdrawals from it and other public funds (Article 217).

FM

Loan was investment opportunity – GGMC

 

Posted By Stabroek editor On January 31, 2015 @ 1:18 pm In Local News |

Under fire over a speedy $3b loan this month to the Central Housing and Planning Authority, the Guyana Geology and Mines Commission (GGMC) today said that it saw the lending as an investment decision.
It cited the rate of interest of 5% on the loan which it said was 3.2% higher than commercial banks, ignoring the fact that the additional interest expense would have to be footed by taxpayers anyway.
Opposition coalition APNU has already said that the loan is illegal. Analysts have pointed out that there is nothing in the GGMC Act that reasonably permits the loan and that two state agencies should not be permitted to enter such a transaction outside of the Consolidated Fund. Such inter-agency transactions, analysts note, would lead to chaos in the public accounts and make a mockery of Parliamentary oversight.
The GGMC also said that it has engaged in many such transactions since 2006.

The GGMc statement follows:

The Guyana Geology and Mines Commission has noted the recent comments in relation to the just concluded Loan Agreement with CHPA and wish to advise that the GGMC Act No. 9 of 1979 is an Act that provides for the establishment and the functions of the Guyana Geology and Mines Commission and is cited as the Guyana Geology and Mines Commission Act 1978.

The provisions of the First Schedule have effect as to the constitution and proceedings of, and otherwise in relation to, the Commission. Sections 10 to 19 of the Act provide the legal framework for the Commission to undertake the granting of loans. More specifically, the relevant Sections are quoted below:

Section 10 states “Subject to such conditions as it may deem fit to impose in particular cases the Commission may, out of its funds and resources, make loans in accordance with the provisions of this Act in that behalf, in the performance of its functions”.
As it relates to the Commission’s functions alluded to in the latter part of Section 10, Section 4 of the Act clarifies these functions. Specifically, Section 4 (1) (f) of the Act provides the Commission with the latitude to undertake activities that would further the business of the Commission and the promotion of its functions by stating “to carry on all activities, the carrying on of which appears to the Commission to be requisite, advantageous or convenient for, or in connection with, the exercise of its functions”.

The Commission undertaking to provide a loan to the Central Housing and Planning Authority (CH&PA) was done purely as an investment opportunity given that the rate offered was 5%; 3.2% greater than the rate currently enjoyed at the commercial banks. In addition, it was seen another opportunity to contribute to the growth and development of the nation.

Further, this should not be perceived as an isolated case of monies being expended or utilized in support of other agencies and for the development of the people of Guyana and the country, given that the Commission has historically provided financial assistance to other entities. This can be evidenced from the listing of financial assistance below that was provided to entities by the Commission over the period 2012 – 2015:

The rehabilitation works to the Bartica Pavilion at a cost of approximately GYD$932,291
The procurement of the Continuous Operating Reference Station (CORS) at a cost of GYD$80,039,806 for the implementation of eight (8) stations over a period of six (6) months which will facilitate real time GPS surveys for all agencies and Ministries.
The transfer of GYD$70,000,000 in 2013 to the Office of the Prime Minister to improve electricity supply at Mahdia, Port Kaituma, Mathews Ridge and Moruca as follows:
GYD$25,000,000 to Mahdia Power & Light Inc. to improve electricity generation and supply.
GYD$25,000,000 to Port Kaituma Power & Light Inc. to improve electricity generation and supply.
GYD$20,000,000 to Mathew’s Ridge Power & Light Inc. to improve electricity generation and supply.
The funding of the restructuring of the Environmental Protection Agency (EPA) by the Commission at a cost of USD$240,000 in 2014.
The transfer of GYD$2.0 Billion from the Guyana Geology and Mines Commission to the National Protected Areas Trust Fund in 2014.
Financial support of USD$450,000 as financial support to Iwokrama International Centre for Rainforest Conservation and Development.
The transfer of GYD$1.0 Billion from the Guyana Geology and Mines Commission to the National Treasury.
The provision of the sum of GYD$756,745,475 to Ministry of Public Works for the undertaking of Road Works in 2012.
Remedial road works at a cost of GYD$3,136,680, to ensure that it is safer for travel by way of reducing its slope.
Payment of GYD$288,309,350 to the Ministry of Public Works for the rehabilitation of roads in 2012.
The transfer of GYD$61,418,000 to the Ministry of Public Works for emergency works under its Hinterland Program.
The transfer of GYD$21,065,925 to the Ministry of Public Works for rehabilitation works conducted to airstrips at Ekereku Bottom (Region 7), Lethem (Region 9) and Imbaimadai (Region 7).
Rehabilitation and widening of road from Mathew’s Ridge to Baramita, Northwest District at a cost of GYD$25,763,826.
Rehabilitation of the Arakaka to the M4 (Manikura Junction) to the M2 (18 Miles) Road costing GYD$31,374,288
The payment of GYD$35, 576,056 for contractual road works in Tamakay.
The Rehabilitation of the road from Brain Sucre Junction to Tumatumari and Micobie Village, Region No. 8 costing GYD$89,691,706.
The payment of the sum of GYD$37,595,974 by GGMC under the Hinterland Road Programme to the Ministry of Public Works to facilitate the rehabilitation of the Ituni-Kwakwani Road.
Rehabilitation of the road from Tamakay to Ottomung Head and Tamakay Junction to Puruni Roadway costing GYD$169,056,450
The rehabilitation of the road from Brian Sucre Junction to Blackwater at a cost of GYD$329,099,606.
The payment of the sum of GYD$168,478,322 to the Ministry of Public Works to cover variation/additional works for the Karasabai-Monkey Mountain Road Rehabilitation.
The payment of the sum of GYD$18,661,000 to the Ministry of Public Works to facilitate the rehabilitation of the log bridge 18 miles before Kurupukari.
Funding of emergency rehabilitation works from Itaballi Landing to 12 miles before Itaballi at a cost of GYD$79,450,000
Funding of emergency rehabilitation works from 12 miles before Itaballi to Puruni Landing at a cost of GYD$60,243,410.
Rehabilitation of Mahdia Internal Roads and emergency works at a cost of GYD$35,888,775 in 2013.
Funding of emergency rehabilitation works for the road from Toraparo Junction to Pappyshou Landing at a cost of GYD$54,026,940
Rehabilitation of the Aremu Road – Phase 1 costing GYD$129,475,767 in 2013 and continued in 2014.
Construction of a Bridge at Tiger Creek costing GYD$8,541,800 in 2013.
Rehabilitation of the road from Matthew’s Ridge to Baramita costing GYD$60,000,000.
Rehabilitation of the road from Arakaka to the M4 (Manikura Junction) to the M2 (18 Miles) Road costing GYD$73,000,000.
Rehabilitation of the Puruni Road costing GYD$47,100,000.
Rehabilitation of the Oku Bridge costing GYD$17,500,000.
Rehabilitation of the Tamakay Road costing GYD$65,000,000.
33. In addition, contributions were made by the Commission to the Consolidated Fund as follows:

Year Amount
2006 $800 million
2010 $2 billion
2011 $2 billion
2012 $2 billion
Total $6.8 billion

The information outlined above clearly indicate the support that has been provided over the years across the natural resources sector in keeping with the mandate of the Commission.

FM

Why should TK bother about the culture of the PPP?

 

It is the People who choose the Party which will govern the country not a chosen few.

 

On May 11,2015, the People will once again exercise their franchise.  They will choose the party capable of running the country.

 

Elections will fair and free

R
Originally Posted by Ramakant-P:

Why should TK bother about the culture of the PPP?

 

It is the People who choose the Party which will govern the country not a chosen few.

 

On May 11,2015, the People will once again exercise their franchise.  They will choose the party capable of running the country.

 

Elections will fair and free

The election will be free and unfair. We are concerned with the culture of the PPP because its choices have implications for everyone living inside Guyana and even inside Caricom. Is that clear enough?

FM

Unfair distribution of radio licences nurtures a bitter society – Sir Fenton Ramsahoye S.C

MARCH 1, 2015 | BY  | FILED UNDER NEWS 

 

By Kiana Wilburg

Distinguished Guyanese Scholar, Dr. Fenton Ramsahoye, S.C

Distinguished Guyanese Scholar, Dr. Fenton Ramsahoye, S.C

Fenton Ramsahoye, QC, strongly advocates for the monopoly over Guyana’s telecommunications sector, particularly the radio frequencies by a select few, to come to an abrupt end.

Dr. Ramsahoye commented on the current mismanagement of the spectrum and warned that should a restructuring of the current arrangements fail to occur sooner rather than later, it could have detrimental effects for freedom of expression in the Guyanese society.

The former attorney general stated that partisan use of the spectrum is unconstitutional and is a misuse of the national asset. He stressed too, that it denies equality of treatment to which every member of the population is entitled.

The lawyer said, too, that the spectrum and how it is managed, currently, needs to be restructured and that it should not be used as a weapon. Failure to do this, he said, would only lead to a fractured nation and increase division.

Former President Bharrat Jagdeo days before demitting office, gifted several radio and cable frequencies to cronies, relatives and family.

A number of frequencies went to PPP’s newspaper, The Mirror; to Jagdeo’s best friend, Dr. Ranjisinghi “Bobby” Ramroop, and another five to an overseas-based sister of Natural Resources Minister, Robert Persaud. Persaud is also Jagdeo’s nephew-in-law.

The applications for radio frequencies by independent newspapers, Kaieteur News and Stabroek News, and televisions stations like CNS 6, WRHM 7, Capitol News, HBTV 9 and RBS 13 were ignored by Jagdeo.

President Donald Ramotar had given his word to the nation that he would review those licences but since he assumed office, it remains an unfulfilled commitment, even in the face of strong protests by the independent media.

In giving his views on the matter, Ramsahoye, said that the Jacob Rambarran case which is with the Guyana Court of Appeal raised the question of the ownership of the spectrum and if its use should be regulated by an autonomous body.

The Queen’s Counsel said that that particular subject raised in the case was also one that was brought up in another, in India. That matter in India which spoke to the use of the spectrum started because of a debate over how the Cricket matches should be aired over radio.

In the India Supreme Court, Ramsahoye said that two things were mentioned that are relevant and important to the Guyanese situation. The first he cited was that the spectrum is owned by all the people of the country and secondly, that its use should be regulated by a self-governing body where all of the people are represented.

Ramsahoye said that he strongly believes that Guyana ought to accept those principles for they are firmly rooted in the soil of democracy.

He said that such a process would ensure the dissemination of information in a free and fair manner.

Ramsahoye stressed that while there is a monopoly over the airwaves by those in power and people believed to be supporting them; freedom of speech is being hindered.

He emphasized that in allowing freedom of speech, one of the fundamental characteristics of any democratic state, ensures that the country is ruled by a representative and responsible government.

He said that such a process would lead to a society being better able to make informed judgments and decisions.

Significantly too, the Queen’s Counsel said that it is only democratic for people to have access to all information and not partisan views. “Partisanship”, he said, “only nurtures and ensures a bitter society.”

He said that one can only expect such as an inevitable consequence with the way the spectrum is being managed in Guyana.

The celebrated scholar added, too, that freedom of expression implies that the means of imparting and receiving information may be constitutionally used. But the use of those means must be regulated in the interest of order.

Dr. Ramsahoye articulated that this means of regulation of the use of the spectrum which is a national asset must lead to honourable and fair dealing in which all of the people have the right to impart and receive information about matters which concern the public.

Members of the political opposition have made solemn promises to revoke, review and regularize the licenses granted as well as the policies governing it.

Specifically, Prime Ministerial candidate for the coalition A Partnership for National Unity (APNU)/Alliance For Change (AFC) front, Moses Nagamootoo, recently said that the partnership is concerned with the deliberate hijacking of the airwaves and of several news outlets.

“We will also move to ensure that the Broadcasting Authority is reformed and sanitized to purge it of party and political contamination. And therefore, that body will be tasked to review the frequency allocation and to consider applications on their merit.”

FM

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