Amaila Falls Hydroelectricity Project, terrorism and funeral

Plainly Business continues my writing on accounting, finance and economic issues previously appearing as Business Page in the Sunday Stabroek. Readers’ comments and discussions are welcome.

Introduction
President Donald Ramotar’s description of the rejection by the parliamentary opposition of a bill and motion dealing with the Amaila Falls Hydroelectricity Project as an act of terrorism is serious stuff indeed. It makes the earlier statement by Prime Minister Sam Hinds about the vote being the funeral of the project seem modest if not jocular by comparison. President Ramotar’s anger is understandable. His exaggerated description of the rejection and his incredible claim that Amaila will save us G$40 billion per year are not. The matters have to be placed in the context of the events in the National Assembly that evening but which are not entirely appropriate to this column.

President Ramotar’s administration inherited and pursued the prestige projects conceived by former President Jagdeo with evangelical enthusiasm. Jagdeo conjured up the Kingston Casino and Hotel Project and everyone followed him. He dreamt about the Airport Runway Extension and Expansion Project and no one questioned or cautioned him, about need, concept or cost. Someone must have told him about health tourism and he decided on a specialty hospital – no explanations sought or offered. But Amaila stands out as the big project; one that Jagdeo might still hope will cause the name Jagdeo to live in perpetuity, not for Pradoville 2 but for vision, not for corruption but for grandeur. Nothing is wrong with having vision and even grandeur, if they take into account that schools are failing and medical services are still Third World-ish.
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Cheddi Jagan International Airport Corporation racks up heavy losses; questions about where the income goes: Revisit this project please – Conclusion

Note to Readers
Over the past month I have been engaged with the editorial management on the Stabroek News over an apology they offered to Mr Ron Webster in connection with his controlling share acquisition in Caribbean Containers Inc, a company of which he has at all material times been Chief Executive Officer. It is my considered opinion that such share dealings are inconsistent with the principles of law and good governance which Business Page has set out to promote.

As a result of our failure to resolve that matter, I no longer consider it possible for me to continue as a contributor to that column.

I thank all the readers of the column for their consistent and critical support over the years and promise that I will continue to advocate good governance in Guyana. A special thank you too to Ms Anna Benjamin, the Sunday Editor and to Mr Anand Persaud, the Editor-in-Chief.

Introduction
In this series I sought to expose the improprieties and the violations of the law and the constitution perpetrated on this country by the Government of Guyana and the directors of the Cheddi Jagan International Airport Corporation. Maybe it was coincidental but it was only after I drew the attention of Mr Ramesh Dookhoo, Chairman of the CJIA Board, to the requirement for the tabling in the National Assembly of the annual accounts and reports of the corporation that audited financial statements were laid. However, the relevant Minister is yet to table a single annual report for any of the nine years of CJIA’s existence. Part 1 of this series also noted that these audited accounts gave no indication that they were approved by the Board and the date on which that was done. These were signed by the CEO and another employee.

The column also challenged the procedure for the accounting and spending of moneys by the corporation. It quoted from the notes to the financial statements which revealed that “all revenue earned and collected from aeronautical services is transferred to the Ministry of Public Works. CJIA Corporation is financed by 37.5% of every departure.” In one year it referred to “departing passenger” while in another it referred to “departure ticket and a subvention.” That is so outside of the framework of the law that it boggles the mind that any auditor, however untrained, would allow such a policy and practice without a complete disclaimer on those accounts. Our Auditor General’s Office appears to have no such concerns and so Minister Benn and the Board of Directors of the Corporation continue in their merry and lawless ways.
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Cheddi Jagan International Airport Corporation racks up heavy losses; questions about where the income goes: Part 4 – Airport extension and the Golden Fleece

Introduction
My hope last week was to move seamlessly this week into the big ticket items on the CJIA contract – particularly the runway and the new terminal building. But during the week there has been something of a development, or rather a distraction. Embarrassed at the revelation that the contract provides for some rather overpriced everyday items such as toilet bowls, urinals, sinks and showers and bulbs ‒ separate from the paraphernalia that go with them – the Ministry of Public Works and Communications whose Permanent Secretary signed the contract with China Harbour Engineering Company Limited, went on the offensive to defend the prices set out in 33 pages of the Bill of Quantities which forms part of the contract but which is described as “provisional.” In language that by GINA standards was uncharacteristically moderate, the ministry claimed for the first time that this was a lump sum contract and that persons were being mischievous in isolating for comment any single line item. Perhaps no one bothered to tell the Permanent Secretary that it is unusual for lump sum contracts to have such extensive Bills of Quantities. I think a better explanation is that once President Jagdeo had been told by the Chinese Money Man that US$138 million was available, his government was instructed to work with the Chinese to come up with a contract for an identical sum. To make that possible, they had to find $424,000 toilet sets, $124,000 sinks and $165,000 washbasins.
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