– says party will inspire confidence for investment
CEO of the Guyana Pegasus and Guyana Stockfeeds Inc,  Robert Badal, has thrown his support behind the Alliance for Change (AFC) saying that he is standing as a businessman who is unafraid of taking a stance. He was speaking at a press conference held at the AFC’s office in Campbellville yesterday. “Today, I stand here to endorse the Alliance for Change as the most credible option to lead Guyana and all its people forward,” Badal said.
“I am a businessman not a politician, but as a businessman and a citizen of this country it is my duty to say something is wrong when it is wrong, free from any fear of intimidation or victimisation,” said Badal.
“An AFC government led by Khemraj, Rafael, Moses and a dynamic team of professionals will restore decency and integrity to government, ensure transparency and accountability to Guyanese and halt the accelerating web of corruption,” Badal told reporters.
The businessman said that lower taxation, something the AFC is putting forward as a campaign pull, “will give us greater control of what we earn thus stimulating domestic demand and ensuring economic growth and a higher standard of living for all.”
Further, the party said that it has received word from GECOM that its concerns over the GECOM Code of Conduct will be addressed and the new version of the Code was to have been made available to the party.
“The Alliance for Change has received, earlier today, a telephone call from [Dr. Steve Surujbally] indicating that our concerns will be met by an incorporation of our two fundamental concerns, namely: 1. the abuse of State resources conferring an unfair advantage to the PPP, and 2. The unbecoming behaviour of politicians and their agents to all important stakeholders,” the party said.
These two issues had been bugbears for the AFC which said that they would not have been signing the Code of Conduct unless they were addressed.
The party had called on GECOM to incorporate and pronounce on the AFC’s party’s recommendations to its Code of Conduct. The AFC made the point that GECOM “should not be seen to promulgate a code and then proceed to stand aloof of all of its infractions both in letter and spirit.”
The AFC said that the Commission must honour its referee role enshrined in the constitution to ensure a level playing field for all political contenders.
Meanwhile, NICIL yesterday re-issued an earlier press release, in which it stated that the Government of Guyana holding company has opposed the Robert Badal’s Guyana Stockfeeds Inc 2010 accounts.
NICIL stated that, at the Guyana Stockfeeds Inc AGM held on 27th May 2011, it opposed passing of the 2010 Accounts on the nature and substance of related party transactions that are considered prejudicial to the interests of minority shareholders. 
NICIL said the basis of its objection stems from two glaring related party transactions:
“First, Mr. Robert Badal has rescinded a sale that occurred in 2007 between Guyana Stockfeeds Inc. [GSI]  and El Dorado Restaurant Inc. pertaining to the assets/franchise known as Popeye’s. While GSI is left with a capital loss as a result of the rescission, Mr. Badal is reported to have subsequently sold the Popeye’s franchise for a profit of well over 100% of the value contracted by GSI (now rescinded).
“Mr. Badal stated in his report to the Shareholders that the reason for the rescission was non-payment.  However, NICIL can clearly show that GSI has had sufficient operating cash flows to pay this debt.  Further, Mr. Badal operates as the majority shareholder, Chairman and CEO of both GSI and El. Dorado Restaurants Inc.
“Second, Mr. Badal some time ago created a company in Trinidad and named the company by the same name as the Guyana counterpart, Guyana Stockfeeds Limited.  However, this Trinidadian company is solely owned by Mr. Badal and is not a subsidiary of Guyana’s GSI.  Mr. Badal uses this offshore company to procure goods and services (to the tune of G$932 M in 2010) and additionally causes GSI to pay this company G$30M per annum as management fees.  GSI (Guyana) does business in Caricom and the fact that Mr. Badal has formed another company with himself as sole shareholder is inimical to the best interests of GSI, more particularly the minority shareholders.” 
NICIL said it finds no justification why the name of Guyana Stockfeeds Ltd should be used by Mr. Badal in Trinidad and finds that the CEO, Mr. Badal, to be in breach of his fiduciary responsibilities to act in the best interest of the GSI shareholders. 
Further, NICIL believes that there is no justification for the Trinidad company to procure any goods or services on behalf of GSI or conduct business for GSI, and believe that this is nothing more than a transfer of value from GSI to GSL.
In 2001, Mr. Badal sold the assets/inventory belonging to National Edible Oil & Fats Inc. (NEOFI), another company owned by Mr. Badal to GSI for G$160M. This investment was nothing but a bail-out as the operation of NEOFI was almost negligible for the last decade. 
In this case, GSI (and all of its shareholders) suffered a huge loss. NICIL said Mr. Badal therefore finds it convenient to have GSI bail out his loss making operations but when assets will make a profit, he is quick to reverse the transaction. “Over the years, many related companies have been used by Mr. Badal and these arrangements have always been questionable. Over the years, NEOFI, El Dorado Rice Mills Inc, Commodities Investments Inc., all related companies owned by Mr. Badal, have had questionable transactions with Guyana Stockfeeds Inc (formerly named Guyana Stockfeeds Limited),” NICIL stated.
It noted that Government is currently in court with Mr. Badal on a number of matters.  One matter relates to the improper dilution of NICIL’s 38% shareholding to 7% in GSI. NICIL won this matter in the High Court in 2008 as determined by Justice Jainarine Singh who ordered that the NICIL shareholding be re-instated.  Mr. Badal, instead of complying, has appealed the matter. The Government therefore views itself (via NICIL) as a substantial minority shareholder.
NICIL further stated that “the continuous and flagrant disregard that Mr. Badal shows to the minority shareholders of GSI is even more glaring based on the 2010 report.”