…lawsuit being contemplated

By Zena Henry
THE matter involving the Rice Producers’ Association’s (RPA) failure to repay $100m it borrowed from the Guyana Rice Development Board (GRDB) is currently engaging the police’s attention. This was disclosed by GRDB’s General Manager, Allison Peters, when an update on the matter was sought during an outreach to flood –affected rice and other farmers in Region Six last Wednesday.

Peters told the Guyana Chronicle too that separate legal action could come against the former board members responsible for the loan. The GM said much could not be said about the ongoing investigation, but mentioned that the missing $100m is outside of the more than $300m the former GRDB members is currently accused of defrauding the organisation.

Six former GRDB members were placed on half a million dollars bail each last month when they were charged with defrauding the corporation of some $362m from its Republic Bank account. The board members represented several rice stakeholder agencies, including members of the RPA.

General Secretary of the Rice Producers Association (RPA) and People’s Progressive Party (PPP) Member of Parliament, Dharamkumar Seeraj, who was also a GRDB board member at the time, was said to be part of the decision to lend the RPA the money, and had signed a promissory note to have the loan repaid in three months. In Parliament, when pressured about the unpaid sum, Seeraj hinted that government asked the RPA for the money since it was the agency that borrowed it and not him personally. Peters noted however that every effort would be made to recover the unpaid money.

“Once money is not where it is supposed to be we have to recover it,” she told the newspaper. The GM indicated that a response was received from the RPA about the loan, but again related that that information is with the police.

“I don’t want to disclose too much, but I can say that it is in the hands of the police…” Peters agreed however that given the outcome of the investigation it is possible that a separate action could be brought against the former GRDB members.

Agriculture Minister Noel Holder confirmed just days ago that “not a cent” of the borrowed money was repaid by the RPA. He suggested that the GRDB should consider suing the organisation to reclaim its funds. The government had ordered an audit into the affairs of the GRDB, which is tasked with the total development of the local rice industry. It was found that the former GRDB members failed to make proper financial records of loans and other transactions which are contrary to the agency’s Standard Operating Procedures (SOPs).

The GRDB is run by a Board of Directors (BOD) and a General Manager. The BoD is appointed by the Minister of Agriculture and must have representatives such as farmers, rice millers, a consumer representative, other Stakeholders of the Industry.

Those before the court on fraud charges are former General Manager of the Guyana Rice Development Board (GRDB), Jagnarine Singh; former Deputy General Manager of the GRDB, Madanlall Ramraj; Seeraj; former Permanent Secretary of the Ministry of Amerindian Affairs, and PPP Member of Parliament, Nigel Dharamlall; former General Manager of the Guyana Oil Company, Badrie Persaud, and the Deputy Permanent Secretary Finance, Ministry of Agriculture, Prema Roopnarine. Peter Ramcharran, who was GRDB’s accountant was jointly charged with the six officials. He was nabbed in Canada just over a week ago. He is expected to fight extradition to Guyana.