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Guyana Stores owes nation hundreds of millions of dollars – AG report
February 13, 2012 By admin
The Auditor General has cited Guyana Stores Limited (GSL) for owing the state some US$2 million (G$407,399,993) in outstanding fees for the purchase of the business when it was privatised by the government back in 2000.
Glenn Lall
The information is stated in the AG’s 2010 report which was handed over to the Speaker of the National Assembly on Friday. Government had sold Guyana Stores for US$6 million, but since October 2000, it has been a tough battle for the owners to pay the full sum. According to the AG, some US$4 million has been paid and the remainder should have been paid over since 2002, but the owners have defaulted.
Kaieteur News Publisher Glenn Lall and Tony Yassin are reportedly the two major shareholders of GSL. It is not clear whether GSL has been struck off the Register of Companies for its lack of compliance.
Recently, shareholders had raised concerns about the operations of GSL. One shareholder has expressed concerns regarding whether GSL was being used as a source of funding for the various business interests of some shareholders. The shareholder added that the lack of disclosure of the true state of affairs of GSL raises considerable concern about what will be left to the minority shareholders and the chances of dividends. It also raises questions on whether the company’s affairs are being managed in the interest of all shareholders, or for the benefit of a few directors.
“Governance is totally out of the window and no one seems to care about it, a minority shareholder who had asked to remain anonymous stated. Another concern was whether GSL had paid its taxes. “With companies in trouble with the GRA, we could wake up and find out that GSL had not paid its taxes to the GRA, and end up losing the company.” GSL at minimum is liable for turnover tax and property tax in any given year. Other taxes are also
applicable. Additionally, “We know that GSL owed substantial taxes to the GRA since privatisation; have these been paid? What about interest and penalties imposed by the GRA”? the shareholder, asked. Some months ago, this newspaper and other dailies reported the government instituting legal action to recover unpaid sums and property from Tony Yassin of GSL and Royal Investments, and the long period it takes for such cases to be determined. The shareholder who complained to this newspaper had also posed a number of questions, among them: Has GSL paid any taxes since privatisation?; If so, how much and is it in compliance with its obligations to the GRA?; How much has been paid in turnover tax, property tax, VAT, duty, PAYE, NIS, and other taxes over the last decade?; Has GSL remitted its NIS and PAYE deductions?; What is the securities council doing to ensure that GSL complies with the law?; What is the Registrar of Companies doing about GSL’s lack of compliance with the statutory filing of its annual return?; Who are the directors of GSL apart from Tony Yassin and Glenn Lall?; How much monies have been paid by GSL to these persons (or any of their companies or affiliates) and for what purposes?; What is the total value of all transactions that are related party transactions?; Is GSL bankrupt given the many legal actions being brought against it by government?; When will GSL publish its audited accounts for the last decade and who are its auditors?.
Guyana Stores owes nation hundreds of millions of dollars – AG report
February 13, 2012 By admin
The Auditor General has cited Guyana Stores Limited (GSL) for owing the state some US$2 million (G$407,399,993) in outstanding fees for the purchase of the business when it was privatised by the government back in 2000.
Glenn Lall
The information is stated in the AG’s 2010 report which was handed over to the Speaker of the National Assembly on Friday. Government had sold Guyana Stores for US$6 million, but since October 2000, it has been a tough battle for the owners to pay the full sum. According to the AG, some US$4 million has been paid and the remainder should have been paid over since 2002, but the owners have defaulted.
Kaieteur News Publisher Glenn Lall and Tony Yassin are reportedly the two major shareholders of GSL. It is not clear whether GSL has been struck off the Register of Companies for its lack of compliance.
Recently, shareholders had raised concerns about the operations of GSL. One shareholder has expressed concerns regarding whether GSL was being used as a source of funding for the various business interests of some shareholders. The shareholder added that the lack of disclosure of the true state of affairs of GSL raises considerable concern about what will be left to the minority shareholders and the chances of dividends. It also raises questions on whether the company’s affairs are being managed in the interest of all shareholders, or for the benefit of a few directors.
“Governance is totally out of the window and no one seems to care about it, a minority shareholder who had asked to remain anonymous stated. Another concern was whether GSL had paid its taxes. “With companies in trouble with the GRA, we could wake up and find out that GSL had not paid its taxes to the GRA, and end up losing the company.” GSL at minimum is liable for turnover tax and property tax in any given year. Other taxes are also
applicable. Additionally, “We know that GSL owed substantial taxes to the GRA since privatisation; have these been paid? What about interest and penalties imposed by the GRA”? the shareholder, asked. Some months ago, this newspaper and other dailies reported the government instituting legal action to recover unpaid sums and property from Tony Yassin of GSL and Royal Investments, and the long period it takes for such cases to be determined. The shareholder who complained to this newspaper had also posed a number of questions, among them: Has GSL paid any taxes since privatisation?; If so, how much and is it in compliance with its obligations to the GRA?; How much has been paid in turnover tax, property tax, VAT, duty, PAYE, NIS, and other taxes over the last decade?; Has GSL remitted its NIS and PAYE deductions?; What is the securities council doing to ensure that GSL complies with the law?; What is the Registrar of Companies doing about GSL’s lack of compliance with the statutory filing of its annual return?; Who are the directors of GSL apart from Tony Yassin and Glenn Lall?; How much monies have been paid by GSL to these persons (or any of their companies or affiliates) and for what purposes?; What is the total value of all transactions that are related party transactions?; Is GSL bankrupt given the many legal actions being brought against it by government?; When will GSL publish its audited accounts for the last decade and who are its auditors?.