–following Sussex Street bond controversy

THE Ministry of Public Infrastructure (MPI) is now mandated to make recommendations on the rates to be used for any property the Government of Guyana intends to rent.Making this announcement on Thursday during his weekly televised programme, ‘The Public Interest’, President Granger said the decision followed the recent hue and cry raised over the controversial Sussex Street bond deal between the Ministry of Public Health and Linden Holdings Inc., owned by Lawrence ‘Larry’ Singh.

Asked by reporters whether Government would be moving to rescind the deal already on the table, the President said, “We have already had an investigation, and Cabinet has considered the rates. We have had evaluations, and the Ministry of Public Infrastructure has been given the mandate to make recommendations on the rates to be used for any property the Government intends to rent.”

He, however, noted that based on the Sussex Street bond issue, his administration has recognised that “the subject ministry is not necessarily the best judge of the suitability of a particular premises, building, or facility to be rented; and I put that responsibility on (the Ministry of) Public Infrastructure.”

The President stressed that the rates which Government is required to pay for the rental of any premises must be reasonable, and he emphasised the need for the rented facility to be “capable, and have the infrastructure to do what we need done.”

The three-year arrangement between the Ministry of Public Health and Linden Holdings Inc., which was agreed on on June 1, 2016, stipulates that rent for the bond is $12.5M monthly, and that the Ministry of Public Health is responsible for the payment of Value Added Tax (VAT) to the Guyana Revenue Authority (GRA) on the property.

It was also agreed that the contract may be terminated with due cause by either party 12 months ahead, once notice is provided in writing; and that the Ministry of Public Health would pay $37.5M, the equivalent of two months’ rent in advance and one month’s rent as a security deposit.

According to the arrangement, this security deposit would be refunded at the end of the tenancy, minus deductions made by Linden Holdings for any damage done to the property during the period of tenancy.

The arrangement also stipulates that the Ministry of Public Health is responsible for maintenance of the aesthetics of the premises, and paying its monthly utility bills, these being to the Guyana Power and Light (GPL), the Guyana Water Incorporated (GWI), and the Guyana Telephone and Telegraph Company (GTT).

Additionally, Minister of Public Health, Dr. George Norton, told reporters on August 25 — when he apologised to the nation — that he is comfortable with the facility provided, while noting that the facility is fully capable of accommodating the pharmaceuticals and is on par with international standards.

Minister of Public Security, Leader of the Alliance For Change (AFC), Khemraj Ramjattan, has described Government’s response to the bond deal as adequate.
Speaking at his party’s press conference on Friday, Ramjattan said, “At this stage, we feel that we have gone the gamut in relation to identifying the wrong that was done; and what our sub-committee at Cabinet did was to ensure that it sought some remedies. The remedies of having the renegotiation, and the remedies of asking the Minister who is ultimately responsible to apologise are sufficient.”

The Minister noted that who is culpable for the wrongdoing is of no consequence to the nation at this point. He said that while the public outcry on the situation is only to be expected, “the criticism that we ought to go further…I don’t know what further investigations might prove, because I don’t know if anybody is going to say ‘I was the one that did that.’”

He noted that it was hardly likely that persons would come forward to accept responsibility. “We are dealing with humans, and not angels,” Ramjattan said, adding: “Should we then bang our heads against the wall?”

The Opposition’s People’s Progressive Party Civic (PPP/C) has called on the Government to rescind the contract granted to Linden Holdings Inc., while accusing Government of a “cover up”.