Latest update December 8th, 2024 2:44 AM
US$500M-plus Venezuela rice deal probe… SOCU investigation stalled as bank holds out on info despite court order
An impasse with GBTI has stalled a major investigation at SOCU involving more than US$500M in Venezuela rice money
Attempts by investigators to follow the money trail involving the lucrative Venezuela ‘oil-for-rice’ deal have stalled because a local bank continues to object to certain aspects of the court order.
The case, which was first reported late last month by Kaieteur News, is being looked at closely as it is testing uncharted waters regarding the privacy of account holders and new enacted anti-money laundering legislations. It is also raising questions about the authority of the court.
Last month, the High Court granted production orders, asking the privately-owned Guyana Bank for Trade and Industry (GBTI) to provide information on account(s) of the Guyana Rice Development Board (GRDB).
The information was requested by the Guyana Police Force, Special Organised Crime Unit (SOCU). Among other things, SOCU reportedly wanted details, including to whom payments were made.
There were reports that investigators found documents of questionable payments made to a rice farmers’ association, one Essequibo rice miller and others.
Already, several former GRDB officials, including General Manager, Jagnarine Singh, his deputy, and board members have appeared in court over record-keeping at that regulatory rice body which over the years has been handling billions of dollars.
Singh and an Essequibo rice miller, who is linked to a Hampton Court facility, were pulled in for questioning.
Earlier this year, GRDB’s offices in Kingston were raided by SOCU officials with documents carted away.
Last Friday, GBTI was granted an extension to the deadline it had been given to produce the information that the court had ordered.
SOCU has reportedly been asking GBTI for the information since February, but met one hurdle after the other.
Yesterday, Minister of Public Security, Khemraj Ramjattan, during a visit to the Guyana National Industrial Company (GNIC) Wharf, was questioned about the impasse with GBTI.
He said that complaints had landed on his desk about the situation. He said that the matter involved US$500M.
The impasse has in essence caused the GRDB investigation into the money trail to stall, Ramjattan said.
In fact, the matter has been raised at the Ministry of Finance level. That ministry, through the Central Bank, has jurisdictions over financial institutions in Guyana. Ramjattan made it clear that banks have an obligation when it comes to an order from a judge.
The minister said he has seen some ‘excuses’ but is unwilling to comment further as it is a sensitive issue involving a financial institution.
The Venezuela oil-for-rice deal was hammered out in the late 2000s between the People’s Progressive Party/Civic Administration and the Hugo Chavez Administration.
It was signed under the PetroCaribe arrangement which Chavez had extended to neighbours and several regional countries, where oil was sold at concessional rates. Guyana would ship rice and use the delayed oil payments to reimburse farmers.
Investigators believe that there were inside deals with regards to how GRDB was paying farmers.
However, there are also questions now about the quota system and whether rice was even delivered in some cases.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
The Fungible Fandango
…Peeping Tom Kaieteur News- Dennis Chabrol asked Bharrat Jagdeo a simple question and Jagdeo responded with acrobatics... more
High-Stakes Bid for OAS Secretary General post
By Sir Ronald Sanders Kaieteur News- The election of a new Secretary General of the Organization of American States (OAS),... more
Weekend Cartoon
