NICIL discussion exposes critics’ unsubstantiated claims
Georgetown, GINA, May 22, 2012
NCN hosts panel discussion on the NICIL issue. From left to right: Publisher of the Kaieteur News Glenn Lall, Chartered Accountant Christopher Ram, Head of the Presidential Secretariat Dr. Roger Luncheon, Chief Executive Officer of NICIL Winston Brassington, and Minister of Finance Dr. Ashni Singh
The eagerly anticipated panel discussion on the National Industrial and Commercial Investments Limited (NICIL) took place tonight live in the studios of the National Communications Network, bringing to the fore the public debates on NICIL, its function and mode of operation.
The panel consisted of NICIL’s Chief Executive Officer Winston Brassington, Minister of Finance Dr. Ashni Singh, Head of the Presidential Secretariat Dr. Roger Luncheon, Chartered Accountant Christopher Ram, Publisher of the Kaieteur News Glen Lall and the newspaper’s Editor in Chief Adam Harris.
Notably absent were Leader of the Alliance for Change (AFC) Khemraj Ramjattan and Executive Member Moses Nagamootoo.
A brief background presented by Dr. Singh, indicated that the company was incorporated in 1990 and served as a holding company for Government’s equity investments in other companies. In 2002, a Management Co-operation Agreement was signed appointing the Privatisation Unit (PU) as exclusive manager of NICIL, for the collecting and accounting of privatisation proceeds, rents, dividends and other income of the combined entity will be done in the name of NICIL.
Clarifying his interest in NICIL, Ram stated that he had requested a copy of the Management Co-operation Agreement which he did not receive, along with NICIL accounts for 2006 to 2011. He referred to this as tardiness in supplying financial information.
Dr. Luncheon said since he had received the request between 15.00 hrs to 16.00 hrs today after the weekly Cabinet meeting, he had informed Ram that the information would be provided to him as soon as possible.
Dr. Luncheon added that there is need to pinpoint the issues and give explanations after the misinformation and misinterpretation published by the private media. He made specific reference to the Kaieteur News which carried articles which he considered scandalous and libelous.
The publication by the newspaper that NICIL has $50B which should be paid into the Consolidated Fund was denied by the company and Lall was asked whether he had any way to substantiate what his paper published. He stated that the information came from the politicians and this was supported by Harris who said that the information was pulled out of a weekly column done for the Kaieteur News by the AFC.
Harris claimed that the AFC explained to him that the information was taken from NICIL’s annual reports up to 2003.
Brassington described this method of computing as ‘jumbie Arithmetic’ which saw the AFC taking the gross revenue for NICIL and all its subsidiaries being put together to come up with such a figure.
Minister Singh stated that definitive pronouncements had been made in the public domain, which are reckless and irresponsible in the face of lack of information. He expressed disgust at the fact that such a definite statement could be made on the back dated financial reports of the company.
In an effort to divert attention from the irresponsible action of making unsubstantiated claims, the Kaieteur News publisher then turned to Government’s investment in the Marriot Hotel.
It was again explained by Dr. Singh, that all the information about this project was already in the public domain having been presented to the National Assembly. The project is a public/private partnership like the Berbice River Bridge, in which the Government will invest US$19M of the total $58M. The remainder will be financed by private investors.
Ram then diverted to the Berbice Bridge and what he referred to as high tolls. He insisted on comparing what obtains there to the toll for the Demerara Harbour Bridge, a Government subsidized entity. Again he was set straight when it was explained that the rate was fixed based on, for instance, what a car (inclusive of having passengers) paid to use the ferry.
Ram then again went back to the NICIL issue and wanted to know whether there was any comingling of funds of the PU and NICIL. Brassington patiently explained that the PU did not own property and that NICIL acts as an agent for Government. He also informed Ram that an updated report on the PU will be issued before the end of June.
Overall, both Ram and Lall admitted by their responses and statements during the discussion, that they did not have enough information on which to base the definitive statements which were made over the past weeks on NICIL.
As the discussion came to an end, Ram chose to then ask about an independent audit of NICIL.
Minister Singh expressed disappointment that Ram would raise such an issue at the end of the programme, but stated that the Auditor General remains the auditor of NICIL in accordance with the laws of Guyana.
He added that there are a number of Parliamentary mechanisms to allow for additional scrutiny one of which is the Public Accounts Committee (PAC) which is chaired by a front bench opposition member. This provides extremely good oversight of the work of the Auditor General’s office. Minister Singh noted also that the PAC is the ultimate accountability mechanism, it can summon accounting officers, public officials, ask questions and receive answers.
He also pointed to the Economic Services Committee which serves the same purpose.
Brassington stated that NICIL has done everything in its power to ensure its accounts are audited. “We have submitted in a timely manner our accounts to the Auditor General (AG). We have completed up to 2005 consolidated accounts. The Minister of Finance had tabled over 80 sets of audited accounts for NICIL and its subsidiaries. The AG has said by end of June he is looking to have the consolidated accounts for NICIL completed all the way up to 2010.”
The NICIL, CEO added that there were “lots of personal attacks on my integrity… I have done my job with integrity and honesty …I’m willing to go before to the Economic Services Committee. I have done nothing wrong.”
In wrapping up, Dr. Luncheon stated that while using NICIL as an example, “the way the issue is treated in the media really epitomizes some of the weaknesses and some of the more objectionable practices. Our two colleagues here have made the point incessantly tonight that I suspect that they will continue making...’we don’t have information, the government is not forthcoming’…and I would want to make the same point that in the context of this lack of information and lack of forthrightness by this Administration on what basis is this profusion of info about; … it is just poured out and anybody who reads cannot help but believe that these journalists, critics are privy to information, sound information that they are offering to the public and yet they come tonight and sit in front of the public and confront us with the situation ‘we are speculating, we are forced to speculate”.
In the context of the lack of information and forthrightness by the Administration, as claimed by the panelists, Dr. Luncheon pointed out that, “It seems to me and this is something that must be repudiated, that the press is actually saying that we don’t have information so we are going to write anything we feel like writing to force the administration to come clean … I want to know whether if this is indeed an approach whether if this indeed motivates Glen Lall in his criticism of government policy and government operations and I feel if this is so, it is utterly reprehensible and needs to be confronted,” Dr. Luncheon stated.
Journalism 095, 096 and 099 are required before you get to Journalism 101 (Intro to Basics).
