Latest update April 25th, 2024 12:59 AM
Jul 02, 2014 News
…but fails to declare how much it raked in
The National Industrial and Commercial Investments Limited (NICIL) which is headed by Winston Brassington has lashed out at A Partnership for National Unity (APNU) for its “calculated, ill-informed and politically motivated” assault on the operations of the controversial entity and its senior management.
Through a statement yesterday, it contended that reports by the political opposition coalition – which have been driven in the media – have no foundation or basis in fact. They “are made with the clearly deliberate intention of undermining and discrediting the major development projects initiated and lead by the company.”
The opposition coalition, specifically the Shadow Minister of Finance, Carl Greenidge, had brought a Motion before the National Assembly which sought to have NICIL’s revenues transferred to the Consolidated Fund.
However, NICIL made it clear that from 2002 to 2013, it paid into the Consolidated Fund, $11.9 billion in dividends from the profits of its operations and its various and ongoing investments. It claimed that it is a net contributor to the Treasury and, its operations remains fully accountable and transparent.
It sought to remind as well, that it was incorporated under the Companies’ Act in July 1980, but began functioning as a Company in July 1991.
In 2002, NICIL and the Privatization Unit were operationally merged. A Management Cooperation Agreement (MCA) was signed appointing the Privatization Unit as exclusive manager of NICIL and reaffirming that privatization of NICIL’s assets would be conducted in accordance with the Privatization Policy Framework Paper of 1993 (White Paper on privatization).
It insisted that it is a holding company owned by the Government of Guyana, and functions as a commercial company which does not benefit from tax concessions and is expected to be and is, in fact, financially self sufficient.
It added that the primary objectives of NICIL are to subscribe or acquire or dispose of Government shares, stocks, debentures or other securities of any company, cooperative societies or corporate bodies.
“NICIL’s operations have always been subject to public scrutiny and are accountable and answerable to Cabinet for its financial transactions made on behalf of the country.
Its finances are also subject to full public disclosure. NICIL is audited by the Audit Office of Guyana.
The company has received unqualified audit opinions each year, since 2002 (the year NICIL and the Privatization Unit were operationally merged), acknowledging the Financial Statements to be a true and fair view in all material respects of the financial position of NICIL up to December 31, 2012.”
“This unqualified opinion also endorses that the financial performance and cash flows of the company are in accordance with International Financial Reporting Standards as issued by the IAS (International Accounting Standards) Board.”
The Company also went on to state that its privatization transactions from 1993 to 2011 have been published in a report released by President Donald Ramotar last year, listing every privatization in the period and identifying the buyer and the proceeds from the sales.
“NICIL’s operations, contrary to the repeated complaints of the parliamentary opposition, are subject to parliamentary oversight. The Minister of Finance has laid the Annual Report, including the Audited Financial Statements of NICIL for the year 2012, before Parliament. Since 2002, NICIL has successfully endeavoured to bring its own and the accounts of its subsidiaries up to date. In doing so, the company has filed in Parliament, to date, 149 sets of accounts representing the accounts of its various subsidiaries in the various years since 2002.”
The government holding company also stated that it owns a number of subsidiaries, including Guyana National Printers Limited, the National Communications Network, Guyana National Newspapers Limited, Guyana Oil Company Limited, Guyana National Shipping Corporation Limited, Property Holdings Inc., Kwakwani Utilities Inc., and Lethem Power Company Inc. NICIL also holds minority investments in a number of companies.
It said that its subsidiary companies are managed and operated by independent Boards and are financially independent, excepting the National Communications Network, which provides a combination of commercial and public programming and its satellite electricity utilities, where subsidies are used to compensate for lower tariffs in the communities in which they serve.
It added that the NICIL Group of Companies employs a substantial number of persons, between them, making a considerable contribution in company and employee taxes to the economy of the country.
Copies of NICIL’s Annual Reports and the other Reports referred to above, are available on NICIL’s website: www.privitisation.gov.gy
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