NICIL is a case of power run amok

Dear Editor,

The National Industrial Commercial Investments Limited (NICIL) has failed miserably at several levels of scrutiny, and a few are listed below:

1.  Substantial funds held by NICIL are not deposited in the Consolidated Fund.

2.  There have been no audited financial statements for NICIL for over seven years.

3.  Peppercorn prices have been paid for state assets, including the Sanata Textiles Complex, among others.

4.  There are conflicts of interest such as the role played by Dr Ashni Singh who as Chairman of the NICIL Board reports to himself as Minister of Finance.

5.  Some of the government agencies and corporations fall under the direct control of the Minister of Finance.

6.  There has been a failure to disclose monies owed to NICIL and its subsidiaries for state assets sold in the past seven years.

7.  There has been a failure to disclose the investments of NICIL over the period referred to in point 6 above.

8.  NICIL does not appear to recognise that the Companies Act 1991 amended in 1995 is subordinate to the Constitution of Guyana.

It would be tiring of me to list other instances of waywardness to highlight the gimmicks of NICIL and its Board of Directors. Commenting on the body politic in 1980 in ‘People Power no Dictator,’ Dr Walter Rodney, Guyana and the Caribbean’s most brilliant historian noted: “There is a double tragedy in this situation. First there is the tragedy (with some mixture of comedy) of the incompetent, the mediocre and the corrupt making a mess of things. Secondly, there is tragedy in which men and women of ability and integrity have been dismissed or they have run away or they have been reduced to silence.” NICIL and its principals have confirmed Dr Rodney’s statement.

In the May 10, 2012 edition of the Guyana Times, the erudite Dr Roger Luncheon was reported as adding to his illimitable lexicon the term “liquid cash.” I suspect the good Doctor has been advised to avoid and to divert public focus from the $50 billion referenced by “perceived commentators,” a category into which Dr Singh has lumped the critics of NICIL.

Dr Luncheon added that ignoring the articles of association is a waste of time and illustrates the “pandering to the gimmickry of Ramjattan and his acolytes.” But what about his faction ignoring Article 216 of the Constitution of Guyana? The articles of association of the Companies Act are rendered null and void to the extent they are inconsistent with the Constitution of Guyana.

Our esteemed Minister of Finance Dr Ashni Singh who is quite aware that liquid cash and surplus funds could represent materially divergent assets is now in full camouflage mode. He should banish any reference to the Companies Act as he attempts to relegate the requirements of the Consolidated Fund below those of the Companies Act.

Then we have Mr Winston Brassington playing to perfection a facilitating role for former President Jagdeo and Minister Singh. Mr Brassington has been appointed to a number of leadership roles in government agencies.

The issue of cash, cash equivalents and receivables is much more relevant to the NICIL $700 million claim by Mr Brassington. Using a quip from the astute President of the United States “let me make this perfectly clear”: Cash and cash equivalents are bank accounts, marketable securities and treasury bills.

Marketable securities and treasury bills are easily converted to cash and should be deposited in the Consolidated Fund.

Let us not conveniently substitute “liquid cash” for surplus funds as seems to be the plan of the PPP. We do not expect the PPP to sell billions in government assets and place the proceeds in a chequing account.

In another bit of comedy we have the knowledgeable Minister of Finance claiming that “NICIL operates within the law.” NICIL in its current form is a glaring case of power run amok. Guyanese leaders and citizens need to ensure that it is converted to operate in the interest of all Guyanese. It is inexcusable to have substantial amounts of government funds outside the remit of the National Assembly.

NICIL’s gross misconduct amounts to a repudiation of good governance and a violation of the Constitution of Guyana.

And to the defenders of NICIL, I refer them to Thomas Paine: “To argue with a man who has renounced the use and authority of reason is like administering medicine to the dead.”

Yours faithfully,
Nigel Hinds