– NICIL maintains

THE National Industrial and Commercial Investments Limited (NICIL) says it is still owed US$5M for government shares in GTT.The Chinese company, Datang Telecom Technology and Industry Group, had purchased government’s 20 percent shares in the Guyana Telephone and Telegraph Company Limited (GTT) in 2012. The shares were sold at US$30M, but the company had paid only US$25M.
NICIL‘s position contradicts that of the government; the latter stated that the sum was paid and that it was finding it difficult to pinpoint who had collected the outstanding amount owed to NICIL. Minister of State Joseph Harmon and NICIL’s in-house attorney, Natalia Seepersaud, visited China several weeks ago and engaged in discussions pertaining to the outstanding US$5M owed for the purchase of the 20 per cent shares in GTT.
It was discovered by virtue of documentation that the outstanding US$5M was paid over to the NICIL.
However, NIICIL is standing by its position that the sum was not paid. The government holding company in a press release recently, stated that on August 24, 2012, it executed a Share Sale and Purchase Agreement (SSPA) with Hong Kong Golden Telecom Company Limited (HKGT) for the sale of the entity’s 20% shareholding in GT&T.
The sale was approved by the former Cabinet. The Asian firm is yet to honour its agreement to pay the balance which has passed an agreed timeline by two (2) years.
According to the statement, the agreement provided for the purchase price of US$30M to be paid within stipulated timelines. This included US$25M to be paid on the closing date and the balance of US$5M to be paid on the completion date. That date is defined as the second anniversary of the closing date, or such other date as agreed between the Vendor and the Purchaser.
NICIL noted that HKGT was the contractural party to the SSPA. It said the company is a subsidiary of Datang Telecom International Technology (Hong Kong) Company Limited, which is wholly owned by its parent company Datang Telecom International Technology Co. Ltd China.
On the 8th November, 2012, the sum of US$25M was wired to NICIL’s account, which utilizes US currency, held at Republic Bank (Guyana) Limited. The balance of US$5M became due and payable to NICIL on October 22, 2014, according to the agreement.
“Despite several written requests by NICIL, HKGT has still failed to pay the balance of the Purchase Price”, NICIL said. The company went on to state that in an attempt to avoid costly and lengthy adjudication of the matter in the English Courts, it requested the assistance of the Government of Guyana to encourage HKGT through diplomatic channels, to honour its contractural obligations.
Subsequently, NICIL noted that after a series of communications with the Former Guyana Ambassador to China, HKGT was assured that they were not required to pay the balance of US$5M. This is against the backdrop that the company not been granted the same minority protection rights enjoyed by NICIL.
On this note, NICIL said the Chinese company alleged that instead of one, it was promised two representatives on the Board of Directors of GT&T. In addition, HKGT also alleged that the decision to waive the US$5M was contained in a side agreement.
NICIL said that it has not been able to verify the accuracy of HKGT’s claim of a waiver.
It has requested the government’s assistance to verify the validity of HKGT’s assertion and the documents they produced to support same.