Managing Director of Guyana Water Incorporated (GWI), Dr Richard Van West-Charles has admitted that he had indeed breached the procurement rules at the water utility company.

Chairman of GWI Board of Directors Nigel Hinds

He made the admission on Saturday during an interview with Guyana Times whilst claiming that Chairman of the Board of Directors, Nigel Hinds, resigned since he could not get his own way.

Van West-Charles, said he has learnt of the resignation letter, which he understands was done voluntarily.

According to Dr Van West-Charles, he respects the decision of the now former GWI Chairman and wished him well in future, though he was at the time uncertain as to whether Hinds had also resigned as a Director on the Board or was simply relinquishing the Chairmanship.

Unilateral

Responding to allegations by Hinds that he, as Managing Director was in the habit of abusing his powers, Dr Van West-Charles admitted that he did in fact breached the procurement rules when he ordered the immediate obtaining of safety gear for staff members undertaking work on the sewerage network.

The Managing Director is claiming that he breached the rules for the “safety” implications of staff members undertaking such tasks.

Addressing the public debate about his attempts to overpower the Board of Directors, Van West-Charles claimed that Hinds’ unilateral actions is that prompted him to solicit legal advice on the powers reposed in not just himself, but the individual members of the Board and the Board as a collective.

Guyana Times was told that Hinds essentially could not get his own way, hence the resignation.

However, this newspaper has seen a copy of the legal opinion sought by Van West-Charles.

In that document prepared by Satram and Satram Law Firm, it was pointed out that the Board’s power as a collective supersedes any individual Director and or managing director.

The Board members, he was informed, act and take decisions on behalf of the company’s shareholders – the owners of the company which in this case is the people of Guyana through the State.

The legal opinion sought has since advised that the GWI Board of Directors led by a Chairman are empowered to direct the management of the business and affairs of the company.”

Directors are generally appointed by the shareholders of the company, and once elected, they are under a duty to act in the best interest of the company when exercising their powers.

“Decisions made outside of meetings and by individual Directors are not properly decisions of the Board and may not be binding on the company,” the legal opinion supplied by Satram and Satram Law Firm stated.

In fact the legal opinion, pointed out to Van West-Charles that the Directors exercise their powers for the benefit of the company.

The legal opinion said too that the powers of the Board are not given to individual Directors but to the Board as a unit since the Board acts collectively.

Hinds on Friday confirmed that his resignation letter has been submitted to the Minister with responsibility for the sector, Ronald Bulkan.

Rubber stamp

Hinds in his letter – a copy of which was seen by this publication – to the Communities Minister, said “I cannot perform in the best interest of GWI, GWI staff, GWI shareholders and other stakeholders of GWI – as a rubber stamp Chairman of GWI… thus, my resignation.”

According to Hinds in his resignation letter, “It is with a deep sense of regret that I resign as Chairman of the Board of Directors of Guyana Water Inc (GWI) with effect from October 26, 2016.”

During a brief interview with the newspaper, Hinds said Dr Van West-Charles currently lacks credibility and described the entity’s Managing Director as pernicious and a person who abuses his authority at the water utility.

Hinds told Guyana Times that by his actions, he has opted to give the Executive and management some leverage in their future dealings with the entity’s Managing Director.