The first response of QAII Executive Chairman to the Business Page Article on June 8 dealing with tax concessions to his companies, was to dismiss the suggestion about the impropriety of the announced concessions and adding for good measure that there was nothing further to be discussed.
Since then, faced with revelations that have obviously embarrassed more than just the group, and realising that it was not the group’s call whether or not there was indeed nothing further to be discussed, the group has embarked on a weekly full page public relations campaign including easy-to-disprove statements that must surely aggravate for them an already bad situation.
Their latest was a full page advertisement in the Stabroek News of Sunday, August 3, 2008, making unfounded and misleading claims and ignoring critical questions that speak volumes about those who are supposed to protect the public interest. It is not my intention to challenge the group on every point including its wishful boast about New GPC being the largest pharmaceutical manufacturing company or that Guyana is essentially self-sufficient in pharmaceutical and medical supplies. In fact with just 39% of its revenue derived from its own production in 2006, it is only the generous definition under the tax laws that qualifies New GPC as a manufacturing company while it only needs a few minutes on the internet to show just how idle is its boast about its size. And if Guyana is self-sufficient in pharmaceutical and medical supplies then Chairman Ramroop may wish to explain why we are importing hundreds of millions of these products each year.
Unable to deal with facts, the advertisement targets me, suggesting that I had disclosed information obtained under a professional engagement. Anyone following the exchanges in the press knows that I wrote only about the discount on the sale to QAII of the additional 30% shares in GPC by the Government. At no time was Ram & McRae involved in that transaction which took place more than two years after we had done a non-audit engagement for the group in respect of an advertisement for the purchase of a 60% stake. The company also states that they did not take our advice on the engagement we did have. They did more than that – they poached the very staff member who led the exercise for Ram & McRae. That staff member is now New GPC’s General Manager!
But I am not surprised at their half-accusation. If they show such scant respect for accuracy and truth in information on straightforward matters like the losses which the acquired company was incurring and the rental QA II are paying for the Sanata Complex, it is unlikely that they will respect anybody’s reputation including their own. Let us get this straight. The source of my information on the discount offered by Mr. Brassington’s Privatisation Unit (PU) was the 2003 audited financial statements of QAII, despite its delinquency in complying with the law requiring the filing of annual reports and audited accounts. And for confirmation just read page 24 of Winston Brassington’s Paper presented to the July 29 Taxation Seminar for his convoluted justification of a discount of $45 Million on the sale of the additional shares. Using simple arithmetic I had reckoned that it was at least $30 Million. Thanks Mr. Brassington for the confirmation. As for the assertion that GPC was making $300 million in losses each year, I have to plead professional confidence.
Now let me offer the group some advice. Just in case it has any residual concerns about my professional conduct they can lodge a complaint with the Institute of Chartered Accountants of Guyana which investigates such complaints. Their PR consultant can help them – he has experience with this, albeit unsuccessful.
And please would the group, in any other full page advertisement it is advised to take, state whether it considers it ethical to have a top official of the Georgetown Public Hospital Corporation – a major buyer of GPC’s products – sitting on the board of New GPC under a lopsided contract that is not in compliance with the procurement laws of the country? Or how it feels about the incentives legislation being changed to facilitate concessions wrongly granted to members of the group.