The State has paid the $226M National Drainage and Irrigation Authority (NDIA) debt owed to Guyana Tractor and Equipment (Guytrac) in full.
Under the previous administration, Guytrac which is owned by businessman Hareshnarine Sugrim, was awarded a contract to supply the NDIA with heavy-duty equipment but the PPP/C Cabinet withdrew its no objection to the agreement.
As a result, Guytrac commenced an action on June 1, 2015, suing the NDIA and the Attorney General for breach of contract.
Under this Administration, Attorney General, Basil Williams agreed to settle the matter after Justice Diana Insanally awarded damages for breach of contract to Guytrac just over $300M.
The State had originally intended to appeal the case but soon after, a settlement was reached and the appeal was withdrawn.
Guytrac agreed to transfer the equipment to NDIA. Kaieteur News has learnt that over the past few weeks, the sum of G$226,161,235 was handed over to Guytrac.
The amount includes damages for loss of profit because of the breach of the contract on the part of the defendant; and interest on any award at the rate of six percent per annum from the date of filing to the date of judgment and at the rate of four percent per annum until fully paid.
Earlier this year, the Attorney General defended the decision to settle the case with Guytrac.
Williams said that in light of the Order of the Court and the manner in which the case was conducted by former Deputy Solicitor General, it was in the best interest of NDIA and the Government of Guyana to amicably resolve this matter.”
The AG disclosed that based on the instructions of NDIA, Government decided to pay $226M to Guytrac for the heavy-duty equipment.
Williams said that the government “in the public interest” negotiated that the settlement would not include damages for loss of profit in the sum of $44.6M; damages in the sum of $19M; interest on any award at the rate of six percent per annum from the date of filing to the date of judgment and at the rate of four percent per annum until fully paid as per the Judge’s order.
The AG noted too that Guytrac agreed to forego in excess of $63M.