Latest update March 19th, 2024 12:59 AM
Jun 03, 2014 News
Prior to the Chief Executive of Guyana Stores Limited (GSL), Tony Yassin, completing his evidence-in-chief before Justice Roxanne George-Wiltshire at the High Court yesterday, he related that based on the net current asset mechanism as stated in the purchase and sale agreement of GSL, the company was supposed to have $400M in inventory but only received $272M.
This meant that there was a shortfall of $128M according to the 2000 audited financial statement.
Additionally, the company was also supposed to receive a net current asset of $200M, but only $11M was in the audited statement, leaving a shortfall of $189M due to GSL. The shortfall of $128M in inventory and $189M in net current assets totaled $317M, which is due to GSL based on the purchase and sale agreement.
Yassin told the court that the Auditor General in 2000, did not convene a meeting as requested to discuss obsolete and slow moving stock, even though his letter of disagreement dating December 12, 2001 was acknowledged by the AG.
Yassin said in his testimony that the AG in a response stated that a meeting would be convened for all parties to address the issue of obsolete and slow moving items. However this meeting was never convened.
Yassin testified that Brassington objected to the AG’s preliminary audited report and wanted it to be changed. That, he said, was done and the change reflected in the AG’s final audited report. It was from that final audited report that Brassington got his figure of $292M as a dividend payment.
And due to the shortfall in the inventory and net current assets, Brassington claimed that GSL owed $96M meaning that GSL paid $196Mto the government based on the purchase and sale agreement.
In an earlier testimony, Yassin had stated that along with Brassington and NICIL’s Chairman Mr. Warrel, the $292M loan for the dividend payment was canceled to remove the encumbrance on the assets of GSL since the company had no money to pay another dividend. However, this dividend which was canceled was still shown in the Auditor General’s 2000 audited financial statement.
NICIL which is being represented by Attorney RafiqTurhan Khan, is claiming that GSL owes the government privatization unit $96M, but GSL is claiming that the government in fact owes it and has filed counterclaims against the agency.
Senior Counsel Edward Luckhoo, Rex Mc Kay, and Attorney Sasenarine Gunraj are representing GSL.
Listen to the man that is throwing Guyanese bright future away
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