June 01,2016 Source

Months after a controversy erupted over the outstanding US$5 million owed for the sale of government shares in the Guyana Telephone and Telegraph Company (GTT), the National Industrial and Commercial Investments Limited (NICIL) is still to provide answers.

The last word from government was that a report on the issue was with NICIL and that the contents were to be made public.

Stabroek News was unable to get an update from NICIL up to Monday.

It was Minister of Natural Resources Raphael Trotman who first disclosed that the whereabouts of the money was unknown.

At a post-Cabinet press conference in April, he said the money had been collected and that State Minister Joseph Harmon had obtained documents which showed that it was paid over prior to the APNU+AFC coalition taking office. “So, we are trying to track down to whom, how and where,” he had told reporters.

Asked for an update on Monday, Trotman said that he may have misinterpreted the meaning of “fully paid.”

He explained that he had only reported what he understood following the return of Harmon from China. Harmon had travelled with a NICIL representative for talks on the outstanding balance.

Trotman told Stabroek News that when he heard about money being paid in full, his assumption was that it was the $30M (a US$25 first payment followed by the balance).

“But apparently there was some document that shows that the company said it was excused from paying that extra (US$)5, which would mean that my understanding of paid in full was not (US$) 30,” he said.

Trotman later said that the issue was not his area of concern and that he was only performing a function at a post-Cabinet briefing.

On April 28, NICIL, in a statement signed by the Chairman of the Board Maurice Odle, outlined in detail the agreement that had been made between the NICIL and Hong Kong Golden Telecom Company Limited (HKGT). It said that that on November 8, 2012, US$25 million was wired to NICIL’s and the balance of US$5 million became due and payable to NICIL on October 22, 2014.

“Despite several written requests by NICIL, HKGT has still failed to pay the balance of the purchase price,” the release said, while adding that NICIL, in an attempt to bypass the court which would be costly and time-consuming, approached the Guyana government for help in encouraging the payment of the outstanding balance through diplomatic channels.

“To NICIL’s knowledge, neither HKGT nor its related companies have alleged that the balance of US$5 million was paid. What was alleged by the purchaser’s signatory to the agreement was that following a series of communications with the former Guyana Ambassador to China (to be authenticated) HKGT was assured that they were not required to pay the balance of US$5 million, because the HKGT had not been granted the same minority protection rights enjoyed by NICIL (i.e. two, instead of one, representatives on the GT&T Board of Directors) which HKGT alleged were promised to them. HKGT also alleged that the decision to waive the US$5 million was contained in a side agreement,” NICIL said.

NICIL said that another press release would be issued at the end of the verification process. It is unclear whether this process has started.

Former president Donald Ramotar has since distanced himself from the controversy, while maintaining that he knew nothing about the money.

However, President David Granger, during a recording of “The Public Interest,” had made it clear that it is Ramotar who has to provide the answers.

“You have to ask Mr Ramotar where the money is,” he said. “I don’t know where it is. I would like to find out but the money went missing under the previous administration and it is certainly missing and that is what Mr Harmon’s mission was all about. We are trying to find out ourselves,” he added.

Ramotar, in a response to what Trotman had said, stated, “The claim by the APNU+AFC government that the money was received is a lie and I challenge the government to present the documents it has received (under suspicious and questionable circumstances) so that the veracity of the evidence can be tested and authenticated.”

He said that the release of this information is suspicious and that the sale of the shares was executed between NICIL and the Hong Kong company.