Latest update April 24th, 2024 12:59 AM
May 08, 2017 News
– admits to collecting cash from TCL on sublease
The Guyana National Industrial Company, (GNIC) has denied verbatim the allegations outlined in the statement of claim by the National Commercial Industrial and Commercial Investments Limited, (NICIL) in the ongoing court case over rent monies owed to the Government Holding Company.
The Government Holding Company,(NICIL) had taken GNIC to court over rent monies owed for a Lombard Street, Georgetown property.
The case stems from issues which date back to 1995.
According to the facts of the case, GNIC, a company owned by Laparkan and the Guyana National Industrial Company (employees), purchased the assets of the former Guyana National Engineering Corporation (GNEC) and leased Lots 1-12 Lombard Street as part of the privatisation of GNEC.
NICIL reduced the rent due from GNIC by 50 percent in 2000 and the sale price of equipment in 1995 by 30 percent. Despite these concessions, GNIC failed to honour its obligations to pay under the lease. The matter was forwarded to arbitration in July 2009.
The award of $148,860,870 was made by the Court following the arbitration proceedings between NICIL and GNIC for unpaid rent in 2013. But GNIC had failed to comply with the award.
The Company eventually paid $108 million to the coffers as part of the settlement. The monies were paid in parts, $60 million and then $48 million.
It was reported that the two entities were unable to settle the dispute, and therefore the Court was set to take the matter to trial. In a detailed affidavit, the GNIC denied that it failed to fulfill its obligation.
In the legal document filed Company secretary, Gobin Persaud outlined a request by NICIL to the court to have the company wound up, (sell all the assets and pay off its creditors).
He said the only basis of this request is the claim that the company was unable to pay in full its debt.
The legal document outlined that in December 2015, the company paid $35 Million and $47 million in November 2006 to NICIL.
Additionally, in November 2016, the GNIC representative said that a Memorandum Of Understanding (MOU) was entered with the Guyana Revenue Authority (GRA) to provide infrastructural facility to accommodate the housing container X-ray machines and ancillary equipment for scanning of containers with respect to the importation and exportation of cargo from Guyana.
The respondent, (GNIC) claimed that it is therefore entitled to set off the said sum totalling $82 M from the amount of $148 million claimed by NICIL.
“The respondent was not given credit for the said sum of $82 M, which was before Arbitration.”
The respondent (GNIC) said therefore as a result of the MOU with GRA, it will be provided with a reliable source of income for approximately GYD $ 16.6 M per month.
“The respondent receives and will continue to receive under the sublease with Trinidad Cement Limited, (TCL); the sum of $ 4.2 million a month.”
At the time of deposing affidavit, GNIC representative noted that the company employs 250 workers which include management, technical, clerical and other craftsmen.
“In the circumstances, the respondent asked that the company liquidate the balance of $66, 860,870 by paying NICIL immediately $60 M leaving the balance of $6, 860 870 at the rate of $1 million per month.”
The respondent asked that the court takes into consideration, the number of employees who will be affected by the order paid for by NICIL.
The company also asked that the court exercise discretion and approve their proposal to satisfy the judgment award and refuse the request of NICIL.
LISTEN HOW JAGDEO WILL MAKE ALL GUYANESE RICH!!!
Apr 24, 2024
Round 2 GFF Women’s League Division One Kaieteur Sports – The Guyana Police Force FC on Saturday last demolished Pakuri Jaguars FC with a 17 – 0 goal blitz at the Guyana Football...Kaieteur News – Just recently, the PPC determined that it does not have the authority to vitiate a contract which was... more
By Sir Ronald Sanders Waterfalls Magazine – On April 10, the Permanent Council of the Organization of American States... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]