Royal Investments to pay outstanding US$2M for sale of Guyana Stores

-Court also awards State interest, cost

CHIEF Justice Roxane George has ordered Royal Investments Inc (RI), which owns and operates Guyana Stores Limited to pay the outstanding US$2M balance to the State for the sale of the business entity.

In June 2004, the National Industrial and Commercial Investments Limited (NICIL) initiated legal action against RI for the recovery of the outstanding sum plus interest. The matter was first filed in 2006, and, after some delays, hearing began in late 2010.
On December 17, the ruling was handed down at the High Court by the Chief Justice who awarded judgement to NICIL in sum of US$2M or its equivalent in Guyana dollars.

The court also ordered that interest be paid as claimed on the said sum of US$2M or its equivalent with effect from October 1, 2001 until fully paid. The Chief Justice also dismissed a counterclaim by RI and ordered them to pay NICIL the sum of $5,000,000 in cost.
The Chief Justice in her ruling made reference to Mohammed Yassin, the Chief Executive Officer of Guyana Stores Limited and him not being honest about his affiliation to RI.

“I found that Mr. [Mohammed] Yassin tried to portray himself as a naïve businessman. Yet, he was dealing with a $6 million US transaction, a not insignificant sum of money in circumstances where the evidence discloses that his company was part of the consortium that made up RI that was involved in the initial negotiations for the purchase of the shares. Mr. Yassin tried to deflect from the fact that he was always a part of RI and I find that this is the flaw in the case for RI,” she said.

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