GOVERNMENT is set to buy out the 10 per cent shares held by the Demerara Distillers Limited (DDL) in the Berbice Bridge Company Incorporated (BBCI) in a bid to have some level of control over the entity. This was announced yesterday by Prime Minister Moses Nagamootoo at the weekly post-Cabinet briefing at the Office of the Presidency (OP).
According to the prime minister, government is working towards buying DDL’s shares in the BBCI which amounts to some $45M.
“Cabinet accepted the offer made by the Demerara Distillers limited (DDL) to sell its shares in the Berbice Bridge Company to the Government of Guyana,” he said.
“The offer comprises of $40M shares held by Demerara Contractors and Engineering Limited, a wholly-owned subsidiary of Demerara Distillers Limited, and it represents 10 per cent of the shares issue of the Berbice River Company,” he told reporters yesterday.

SOME SAY

Noting that the government is doing all in its power to ensure that it has a say in the day-to-day running of BBCI, the prime minister said:
“We are taking our promise to a further stage of ensuring that our voice is not a feeble one, and that the dominant partners in the Berbice Bridge recognise that we are serious. We are prepared to go even further.” Government, Nagamootoo said, has been in talks with DDL over its shares in the company, and Finance Minister, Winston Jordan has been asked to continue talks with the company with respect to the sale of shares.
“Cabinet, in quest of this,” he said, “has authorised the Honourable Minister of Finance to ensure that this is no joking matter; to conclude the purchase of the shares as offered. He has also been advised to seek the best possible price for the shares.”
He said that while government is well aware that the asking price is $45M, it is hoping that DDL, “as an outstanding corporate citizen of Guyana, would agree to a reasonable settlement.”
EVEN MORE SHARES
Asked about the likelihood of buying even more shares, Nagamootoo said the thought has crossed the government’s mind, and that it already has “broad feelers” out to ascertain which companies may have an interest in selling it their shares.
“I believe that what Government seeks to do is to send out a broad feeler to all those who have shares. We know that a major shareholder has raised a flag; a very big flag, and we are going to look at that on its merit,” he said, adding:
“Yes, we are talking to shareholders, but the offer that we have from DDL was in the sum of $45M.”
He said that once government obtains additional shares in BBCI, it will be moving to lower the bridge tolls. “As you know,” the prime minister said, “government is determined to reduce the toll attached to the Berbice River Bridge.
“And we had taken measures, including the provision of ferry taxis, to ease the pressure and burden of the people who use the bridge.
“But we have come to the position that while we are negotiating with the Bridge Company to effect a reduction in the toll, we are also thinking of how this government can place itself in a better negotiating position, by attracting shares, so that it could have a stronger voice in the governing body of this company.”
CAMPAIGN PROMISE

Back in July of this year, government reduced the BBCI toll, stating that it had made a promise to the people of Berbice to do so while it was in Opposition, and more so while on the campaign trail.
The lowering of the bridge tolls is among measures employed by the government to ease the financial burden on those who traverse the bridge.
Additionally, government had committed to offsetting the losses the Bridge Company would have incurred as a result of the lowering of the tolls.
Government did acknowledge, through its Minister of Governance, Raphael Trotman, that while BBCI is a private company, there is legislation in existence that gives it some element of freedom where fares are concerned.
He argued that while the Bridge Company has every right to recover monies made on its investment, a “responsible government” has every right to represent the people.
NO HEADWAY
The Board of Directors of the BBCI and Christopher Ram, government’s main negotiator, have not been able to make progress with respect to the lowering of the tolls.
There exists an ordinary share capital of G$400M, while the National Insurance Scheme (NIS) has G$950M in preference shares, coupled with fixed dividends. The equity shareholders are Demerara Contractors Limited (G$40M); Hand in Hand Motor & Life Insurance Company (G$40M); Secure International Finance Company (G$80 million); Queens Atlantic Group of Companies (G$160 M); and the NIS (G$80 M).

By Ariana Gordon