Privatisation of state assets based upon policy and procedures, not race- Dr Luncheon tells court

– as President’s libel case continues
HEAD of the Presidential Secretariat (HPS), Dr. Roger Luncheon, yesterday explained the process of allocation of lots at the Coldingen Industrial Estate, East Coast Demerara, an issue that arose during the
cross-examination by the defence to allegedly show acts of racial discrimination,
in President Bharrat Jagdeo’s libel case against Freddie Kissoon and the Kaieteur News currently in the High Court before Justice Brassington Reynolds.
The HPS said that subsequent to the preparation of the land, the lots were advertised and interested parties had to present a management plan (how the lot will be utilised) as well as demonstrate their
capability of executing the plan. Once these criteria were met, the “one dollar per lease offer” was extended.
This transaction was done by the National Industrial and Commercial Investments Limited (NICIL).
“The industrial estate Coldingen, is the first that was established in 1994 during the Presidency of Cheddi Jagan. The final allocation was completed before the plaintiff (President Jagdeo) assumed office,” Dr. Luncheon said.
Similar procedures were adhered to in the allocation of lots at the Eccles Industrial Estate, which was also executed by NICIL. Here again, an expression was invited for persons to apply for lots in this site. This expression was publicly advertised and interested persons were required to submit a developmental plan in respect of the use to
which they will put the property.
Once this plan was accepted, the leases were issued.
It is well known that several leading business places have been allocated lots at this site, including Ready Mix Concrete Ltd, Comfort
Sleep, Associated Packers, Technical Services Inc., Samuel Wicker Furniture, Yasco Seafoods, Reaz Khan Trading, and the defendant itself, Kaieteur News.
The plaintiff’s attorney, Anil Nandlall, then asked the witness to clarify questions that were raised with regard to the divestment of several properties, including Guyana Stockfeeds Limited, Diamond Sugar Estate, Guysuco building on Camp Street (between Quamina and Middle Streets), Rice Marketing Board on Water Street, National Archives building on Main Street, Guyana Airways Corporation (GAC) building, Main Street, and the Belle Vue Clay Brick Factory Canal No. 2 Polder.
In respect of each of these properties, the HPS explained in great detail the process by which each was divested and that these divestments were done by NICIL.
The divestment of these properties was executed by NICIL in accordance with open, transparent tendering procedures, whereby a market valuation was carried out on the asset that was being divested, followed by public tender, and after the endorsement of the most
competitive bidder; it was then taken to Cabinet for approval.
The HPS detailed for the court how each of the transactions was done.
Notably, all of the details of these transactions, including the entire process beginning from the public invitation of expression of
interest, with the names of the successful bidders, the purchase price paid for each property, the date of the transaction and the date when each was advertised in the Official Gazette, are all publicly available
in a document entitled, “Guyana’s Privatisation Programme: The Institutional Framework and Results for Phase 11 (1993-2008) compiled by the Head of the Privatisation Unit, Winston Brassington, which was
presented at a symposium held at the Pegasus Hotel in January 2009.
This event was well attended by the private sector, political parties, labour movement, and civil society organizations, and was widely reported on in the press.
During the cross-examination, Dr. Luncheon was questioned about the award of contracts, when he explained that the only role of Cabinet in this process is to offer its “no objections”. Nandlall, in his re-examination, asked the HPS to explain the basis on which this would happen.
The Cabinet Secretary explained that Cabinet receives awards for the procurement of goods and services that exceed $15M from the National
Procurement Tender Administration Board (NPTAB).
These he said, are evaluated by Cabinet from the perspective of compliance to the Procurement Act and its regulations, before giving its no objections.

Significantly, the Chairman of the Tender Board, Donald deClou, and the Chief Executive Officer, Lloyd Ford, are both Afro-Guyanese.

“In essence, Cabinet’s no objection addresses its satisfaction on the basis of the submissions of the NPTAB of the details of the award and the NPTAB’s compliance to the rules and regulations governing such an award,” he said.
He further disclosed that Cabinet’s withholding of its no objections is an indication of its dissatisfaction and failure to be convinced,
based on the documentation submitted by the NPTAB, that the procurement process was carried out in accordance with the Act, its regulations and the bidding document.
The matter continues at 13:30hrs today. (GINA)

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