Marriott’s reputation will suffer for colluding with “corrupt” PPP – Pegasus owner

Apr 01, 2015 News

As the controversial US$58M Marriott Hotel gets ready to open its doors later this month,

AHI’s head Winston Brassington and Marriott Hotel’s GM, Roberto Grissi

minus its crucial casino section, prominent businessman Robert Badal has criticized the US manager for participating in a project not supported by all Guyanese.
In a harsh statement yesterday, the owner of the Pegasus Hotel also made it clear that the details of the project all point to a massive deception and fraud scheme to use taxpayers’ monies to gain control of it.
It was revealed last week that Government had decided to go ahead and hire the Chinese contractor, Shanghai Construction Group, even before an independent feasibility study was completed.
Government signed contracts for the hotel since in October 2011, but only had the critical feasibility study done by a Miami-based consulting firm in September 2012. The feasibility study is the assessment that tells whether a project makes economic sense.
“Amid widespread criticisms, this revelation adds to the mounting of evidence on the haste to advance this project. The splurge of tax concessions, issues surrounding title to the land, excess supply of rooms and low occupancy, the commitment of $58M of taxpayers’ money on this project, all point to deception and fraud by the PPP administration,” Badal said.
The businessman, who also owns Guyana Stockfeeds Limited and is a large rice exporter, said that many locals are convinced that the US$8M to be used to pay for 67% equity in

Marriott International has come under severe criticism for continuing to back the US$58M project that was not okayed by the National Assembly.

Marriott represents kickbacks from the project.ý
“It was therefore the intention of the powers behind this project to end up owning a US$58Mý hotel by paying US$8M to be received from kickbacks,” he said.
Badal was also critical of the silence by Marriott Hotels International which has the management contract of the Kingston facility.
“While the poor Guyanese taxpayers ýare footing the US$58M project, Marriott Hotels International is smiling as its monthly operating cost including salaries, electricity, maintenance, security, etc., are also paid by our taxpayers.”
The businessman criticized General Manager, Roberto Grissi, for effectively being given a blank cheque on poor taxpayers’ resources to poach employees of local hotels and other established city businesses.
Marriott silence
“While this fraud is tolerated in no other countries of the world, the PPP administration supports it. It is also a fact that the timid private sector bodies are silent on the matter. But what does this say about the morality of Marriott Hotels and the Marriott brand?”
Badal said that “Marriott must have known that this project is widely criticized locally, that it was not approved by Parliament; that the National Assembly passed a resolution demanding a forensic audit of this project; that the average hotel occupancy in Guyana is below 50%, and that the people of the poorest country in the region by no means could afford such an expenditure.”
The hotelier believes that the Marriott executive must have known that the PPP Government is a minority one and that such misuse of public resources is unprecedented in any democracy in which it operates, and would not even be contemplated in the US.
“Then why is its (Marriott International) brand associated with a questionable project? Why continue to be a parasite on the backs of Guyanese taxpayers? The fact is that reputable brands and businesses are built on strong values, integrity, and responsible alliances.”
Badal argued that the project represents exploitation of a poor nation and it would be hard to think that Marriott Hotels represents these values.
“I believe that its brand would take a big hit internationally because of its alliance with the corrupt PPP administration,” he said in the statement.
The Marriott project is being managed by the Government-owned, National Industrial and Commercial Investments Limited (NICIL) and its subsidiary, Atlantic Hotels Inc. (AHI). Both are headed by Winston Brassington, an official who has been under fire for a number of multi-billion-dollar deals.
NICIL is the controversial company in charge of managing state assets and investments, while AHI is a holding firm which is overseeing the hotel’s construction and its subsequent operations.
Government has plugged more than US$36M of taxpayers’ money held by NICIL into the construction of the Marriott without the authority of the National Assembly.
This sparked outrage by an incensed Opposition which said that the money belongs to taxpayers and should not be spent without their permission.
The hotel is set to open this month, but its critical entertainment component that will house its casino and restaurant, will not be completed before yearend.
The 197-room hotel and entertainment complex ran into a roadblock last year after an Opposition Parliamentarian, Desmond Trotman, filed court actions which blocked AHI from mortgaging the hotel.
The court action effectively blocked monies from the equity investor from Hong Kong –US$8M and US$27M from a syndicated local being handled by Republic Bank. Only part of the syndicated loan was released by the bank. From indications, taxpayers through NICIL and by extensions plugged in more than US$36M into the project.
Despite putting in almost all the monies, Government now wants to go ahead with plans to allow a virtually unknown investor to plug in US$8M but own 67 percent of the hotel.