Dear Editor,

THE Kaieteur News article of Wednesday, September 1, 2016 titled “NICIL’s operations still shrouded in secrecy” is rash in its claim that NICIL Board members are uninterested in bringing wrongdoers to justice.While the forensic audit report of Mr. Goolsarran has been in the hands of the NICIL Board for several months now, the Board is awaiting the outcome of the additional transactions audit, recommended by the Forensic Auditor and endorsed by the Cabinet, which is currently being undertaken by the Audit Office of Guyana.

In the meantime, the Special Organised Crime Unit (SOCU) has been examining NICIL’s records and files for any evidence of corruption and other illegality. NICIL stands ready to take whatever appropriate action is required. Nevertheless, the NICIL Board has already made several policy reforms and operational adjustments (italicized below) based on the forensic auditor’s comments and recommendations (bold below) as follows: It is inappropriate for the Minister (of Finance) to appoint himself to chair NICIL’s Board, since in effect he is reporting to himself on matters relating to NICIL. The Minister of Finance does not now sit on the NICIL Board. It would be desirable for the Executive Director and the Deputy Executive Director to proceed on leave to facilitate the transaction audit. Mr. Winston Brassington, NICIL CEO, resigned in January 2016. Deputy CEO, Mrs. Marcia Nadir-Sharma, is on administrative leave pending the outcome of the transactions audit.

As regards liquidating NICIL as a private limited liability company under the Companies Act 1991 and appointing a receiver to oversee the liquidation process, this is a policy decision to be taken by Government. A decision was taken by the Board not to recommend the disbanding of NICIL. The Board recommended that NICIL retain both its original custodial and oversight role as a holding company, and also its development role. The development role, in conjunction with line ministries, involves capitalization, financial and legal structuring, and project management with respect to certain investments approved by Cabinet.

In addition, NICIL continues to be responsible for various types of assets, particularly land and property, until such time that the Government may deem it necessary to privatize same.

Collaboration with ministries and agencies is being used to enhance effectiveness; for example, a MoU has been signed with the Ministry of Business concerning the administration of industrial estates.

Serious doubts as to whether valuations were indeed carried out. Current Valuation Policy – Clear and objective principles are applied in a consistent and non-partisan manner.

Current Pricing Policy- Sale price of property has a very close and unbiased relationship to market value.

Current Leasing and Sub-Leasing Policy – Leasing performance requirements are to be strictly enforced. NICIL sold the Government’s investment in GT&T in 2012 for US$30M, of which the sum of US$25M was received. The balance of US$5M was to be paid within a period of two years. No new contract will include terms for payment by instalments. Full payment of the purchase price must be effected before possession and/or transfer of ownership will be allowed.

NICIL does not have its own procurement rules, which is a key requirement of the Procurement Act. NICIL is guided by the provisions of the Procurement Act, and is in the process of formulating clear implementation rules and guidelines for larger projects.

Refer this report (Forensic Audit Report) to the State Assets Recovery Unit with a view to recovering any State assets/properties that might have been improperly and illegally transferred to third parties. SARU is conducting its own investigations, and is yet to formally advise the NICIL Board on its progress.

Fulfilment of principles of corporate governance…adherence to legal and statutory and policy instruments and good practices

1. The current Board of NICIL subscribes to the principles of transparency and accountability. However, constraints exist, as in the case of the Marriott Management Agreement that was executed under the previous administration. The terms of this Agreement are “strictly confidential”, and disclosure is not possible without the written consent of Marriott.

2. Dividends and other revenue/surpluses are now substantially remitted to the Consolidated Fund, except for what is required for NICIL’s day-to-day purposes.

3. A firewall now exists between NICIL’s finances and those of Government agencies.

MAURICE ODLE (Dr.)
Chairman,
NICIL Board of Directors