THE Attorney General’s (AG) Chambers on Monday explained why the state negotiated with Hareshnarine Sugrim of Guyana Tractor Equipment for the company to forego in excess of $63M following an award made in Sugrim’s favour recently.

In a statement to the media, the AG’s Chambers explained that contrary to an article published by the Kaieteur News on Friday, May 4, 2018 under the headline, “Gov’t agrees to pay GUYTRACT $226M in yet another out of court settlement” the move was necessary.

Sugrim in June 2015 had taken the National Drainage and Irrigation Authority (NDIA) to court via a Writ of Summons with Indorsement of Claim. Under the People’s Progressive Party (PPP) administration, Sugrim was awarded a contract to supply NDIA with equipment.
Cabinet at the time, subsequent to the award of the contract, withdrew its no objection to the award. As such, Sugrim began action, suing the NDIA and the AG for breach of contract.

The State lost the case and Justice Diana Insanally awarded damages for breach of contract in the sum of G$226, 161,235, damages for loss of profit in the sum of G$44,602.000 as a result of the breach of the contract on the part of the defendant.
Resulting damages in the sum of G$19M and interest on any award at the rate of 6 per cent, per annum from the date of filing to the date of judgment and at the rate of 4 per cent, per annum until fully paid were also ordered by the high court judge.

The AG’s Chambers said given the court’s order and the manner in which the case was conducted by former Deputy Solicitor- General Prithima Kissoon, “it was in the best interest of NDIA and the Government of Guyana to amicably resolve this matter.”

The government said Kissoon in the Kaieteur News article “distorted the facts and deliberately contrived to mislead the public about the true facts and circumstances of the case and slander the office of the Honourable Attorney General.”

The AG’s Chambers contend that the matter was conducted solely by Kissoon as she prepared and filed pleadings submissions on behalf of the state. Kissoon has been accused of assisting the case for the defence without regard to specific instructions from Attorney General Basil Williams.

“By the time the Honourable Attorney General attempted to intervene in the matter, Ms. Kissoon had already filed pleadings, conducted the trial, argued and filed submissions,” the statement read, while noting that it was as a result of Kissoon’s “dereliction of duty and refusal to obey specific instructions” that the state was forced to go this route.

Meanwhile, NDIA has agreed that it would purchase from Sugrim, six long broom excavators and other equipment which they needed, for the sum of G$226, 161,235 in full and final settlement of the matter. It was also negotiated that in the public’s interest, the settlement would not include damages for loss of profit in the sum of G$44,602.000.00 as a result of the breach of the contract on the part of the defendant, damages in the sum of G$19M, interest on any award at the rate of 6 per cent, per annum from the date of filing to the date of judgment and at the rate of 4 per cent, per annum until fully paid as per the judge’s order.

Based on the negotiations, Sugrim has agreed with the state to forego in excess of $63M. “Therefore, Kissoon’s accusations and insinuations against the Honourable Attorney General and the office he holds are unfounded, mischievous and without any merit.” “The settlement of this matter has saved the Government of Guyana millions of dollars and provided the much-needed equipment to the NDIA,” the AG’s Chambers stated.