Latest update April 24th, 2024 12:59 AM
Oct 02, 2010 Letters
Dear Editor,
Your news item, “Guyana Times, other Sanata companies breach Company Act,” (Kaieteur News, October 1), revealed that six companies that constitute the Sanata Complex, do not legally exist.
These are 1) Guyana Times, 2) Health Life Sciences Inc., 3) Health Care International, 4) Global Textile (Guyana) Inc., 5) Global Printing and Graphics, and 6) Global Hardware Inc.
The news item further informed that companies are usually struck off the Register of Companies for a variety of reasons, including failing to file annual returns and providing necessary information as it relates to changes within the company.
I really don’t know what the exact reasons are for these companies being struck off the register, but I would be outraged if these companies are doing business with the Jagdeo Government while not in legal standing, according to the Company Act.
I have followed with grave consternation news reports of Guyana Times receiving a sizeable share of state advertisements even though it reportedly does not have the kind of circulation that matches either Kaieteur News or Stabroek News.
I have also read a news story in which public bidding was scheduled to start either last month or earlier for companies to supply pharmaceuticals to the government and that Health Life Sciences and Health Care International were named as contenders.
But is it true that Global Printing and Graphics has taken up a significant portion of government jobs usually contracted to small private printing and graphics companies?
And is it true that Global Hardware has taken up a significant portion of government orders for hardware (including PVC pipes) usually issued to other private hardware suppliers?
Guyanese should be aware that Sanata Complex, like the New GPC, was once owned by the Government, and both are now owned by the same holding company – Queens Atlantic II (QAII).
But while Guyanese know that the New GPC has been doing brisk business with Government, do they know if Government has turned around and is doing business with all six companies that now constitute the Sanata Complex?
If Government is doing business or will be doing business with all six companies, as it is already doing with the New GPC, it ought to raise red flags about the true motive for Government selling the properties in the first place to the same people.
This could be the basis for the making of a monopoly and it is dangerous to private sector competitors in an economy where the Government appears to be the dominant investor, and is not afraid to flex its political muscle in the private sector.
But what is even more troubling for other private sector competitors in the same areas as those in which the New GPC and Sanata subsidiaries operate is that the Jagdeo Government has bent over backward to circumvent the 2003 Procurement Act and allow Government to source drugs directly from the New GPC.
Which other drug supplier in Guyana got such a massive sweetheart deal ($500M to $600M in 2005)? This issue sparked a heated exchange among Health Minister, Dr. Leslie Ramsammy, and Parliamentarians Winston Murray (PNCR) and David Patterson (AFC).
Beside the Cabinet waivers for the New GPC that circumvented the Procurement Act, Government also bent over backward when it granted illegal tax breaks and concessions to QAII for Sanata Complex. Again, which other local company got offers for such concessions (even though illegal)?
How can anyone not see red flags fluttering over the entire QAII deal for both the New GPC and Sanata Complex? And this is why I keep urging Government, not QAII, to come clean with the people of Guyana, because not only were both companies once the people’s properties, but the people’s monies are being spent to keep those companies alive.
The QAII deals, followed by the Government awarding of US$15.4M to Mr. Makeshwar ‘Fip’ Motilall to build a road, and talk about public-private partnerships (think Government’s US$20M for the Marriott project) are all reasons why I keep urging transparency because I fear Government could wind up spending taxpayers’ monies on ventures that could eventually benefit a ‘chosen few’ among private investors.
I want to close by referring to one of the reasons mentioned above for a company to be removed or struck from the Register of Companies, which is if it fails to file annual returns or effects internal changes.
In one of Mr. Christopher Ram’s many illuminating articles, “NICIL is in violation of the law,” (Yahoo Search Engine, February 14, 2010), he pointed out at the time that NICIL, a state-owned company, had not filed any annual return for more than 10 years, 2) had not laid any report and accounts before the National Assembly for the same 10-year period, and 3) had not filed any notice showing then Finance Minister, Mr. Saisnarine Kowlessar had been replaced as a director.
If the state-owned NICIL was or is in violation of the law, and the QAII is not legally in good standing according to the Company Act, yet the Government is doing business with QAII, what does that tell us about the mindset of the people involved?
What will it take for the Jagdeo Government to come clean on its deals with QAII?
Emile Mervin
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