THE Government of Guyana has found it necessary to formally request an additional $100 million in supplementary funding to address the mounting legal expenses associated with the ongoing US$100 million lawsuit initiated by Smart City Solutions (SCS) against the State. These expenses have arisen directly due to the irresponsible mismanagement and corruption witnessed under the APNU+AFC administration, resulting in a depletion of over $150 million from public funds.
Attorney General and Minister of Legal Affairs, Mohabir Anil Nandlall, revealed this during his weekly programme, ‘Issues in the News,’ on Tuesday.

Nandlall provided an update on the legal proceedings, noting that the case, which is being adjudicated before the International Centre for Settlement of Investment Disputes (ICSID) in Washington, DC, remains ongoing.
“The company has sued the State of Guyana in Washington, DC, and the case is currently ongoing. We have filed our defence. We are in the process of filing; they are in the process of filing a reply to our defence, and then we have to reply to their reply. Long story, but Guyana is being sued for US$100 million,” Nandlall stated.

He emphasised that this colossal financial burden results from the APNU+AFC administration’s ill-advised decisions, particularly the botched implementation of a parking meter system in Georgetown.
The project, which was awarded to SCS, a Mexican company, in 2016, faced widespread public outrage and was ultimately suspended after the People’s Progressive Party/Civic (PPP/C), while in opposition, vehemently opposed the contract.
“APNU+AFC’s mismanagement and corruption have exposed us to this massive liability. This is a US$100 million lawsuit for damages and compensation that the company claims it lost. If you look at the last time I was in Parliament with the supplementary, there was $100 million put aside for legal fees. We have to pay for that. We have already paid over $150 million, and we have put aside another $100 million to pay legal fees to defend the case that APNU+AFC caused to be filed against us,” Nandlall elaborated.
Party representatives for the claimants in the case are the law firm Pillsbury Winthrop Shaw Pittman in the United States. Meanwhile, the Government of Guyana has retained Foley Hoag and Associates, alongside the Attorney General’s Chambers.
In June 2022, Argentine international lawyer, Marcelo Kohen, was appointed as the arbitrator for the proceedings. An arbitrator is an independent person officially appointed to settle a dispute.

It was in 2016 that City Hall, under the then Mayor Patricia Chase-Green while the APNU+AFC David Granger-led coalition government was in office, signed a contract with SCS to implement a parking meter system in Georgetown.
Installations were happening throughout the city, and staff training for the new parking meter regime.
However, the initiative faced immediate backlash and saw massive protests against its implementation.

Citizens contended then that the fees were too high and placed undue financial burden on the populace. Others argued that the awarding of the contract lacked transparency.
Public pressure forced a suspension of the project.

The APNU+AFC was voted out of government in 2020. Patricia Chase-Green is no longer Georgetown’s Mayor, and the city’s then-Town Clerk, Royston King, is also no longer in the employ of the city.
Nandlall had previously said that it is unfortunate that the citizens are left to deal with the consequences of decisions that were made by officials who do not have to deal with the penalties of their decisions.
“It is a complete and utter waste and unnecessary use of taxpayers’ money for a case that is due to the reckless decision that was made under the previous administration.

Those who made the decision and are responsible are no longer there to answer for the decision. But the people of Guyana now have to shoulder that burden and it’s unfortunate, but it’s the duty of our government to defend the country,” the AG related.