MINISTER of Finance, Winston Jordan, has said that Guyana’s development is challenged by the amount of payments the Coalition Government is forced to make towards legal judgements awarded against the state. Most of these cases originated under the previous PPP administration, he revealed.

In an interview with the Department of Public Information, the finance minister said that these costs have had, and will continue to have, a negative impact on cash flows, particularly those earmarked for developmental areas.

Explaining that, “any money against the state is money that has to be diverted away from any developmental activity”, Minister Jordan said that a large number of cases were inherited from the previous government. He acknowledged that there were a few that arose under the current government, but these “pale into insignificance” when compared to what was inherited. The inherited judgements, range from GYD$100,000 to US$40M but were not honoured by the PPP. Minister Jordan explained that once judgement is awarded, interest payments amount to six per cent from the time the case is lodged in the court to the time of the award, and four per cent between the time of the award to the time of payment.

The Caribbean Court of Justice (CCJ) ruled that Guyana refund Trinidad-based beverage company, SM Jaleel (SMJ) and its subsidiary Guyana Beverages Inc. (GBI), over the Environmental Tax imposed, in breach of the Revised Treaty of Chaguaramas, between 2011 and 2015 close to GYD$1Billion. This was in May of 2017.

The public has a right to know how much the Coalition Government has paid and is continuing to pay, hence Minister Jordan proposes to have the details published for all to see. “Such a list can be put together by the Attorney General’s Chambers. That is where they originate and eventually come over here (to the Ministry of Finance) for payment…These are monies that could have been used to build another hospital, another school, health centre, pay a little bit more wages or something. It is monies that will result in the postponement or abandonment of a developmental activity,” Jordan explained.