Caution: Bridge Company helping to sink leaking NIS

Recently the NIS has made news on two scores: the first that it will not receive any dividends on its investment in preference shares in the Berbice Bridge Company Inc., and the second that there are more than 1,500,000 contributions which have not been credited to the workers’ account.

I was disappointed rather than shocked when I saw Ms. Doreen Nelson, General Manager of the NIS, sitting passively next to her Chairman Dr. Roger Luncheon announcing that persons were not coming forward to help clear up the contribution mess in the NIS. Ms. Nelson knows that his statement contradicts the experiences of many contributors who try, sometimes for years, to persuade the NIS that the contributions recorded in its records are less, sometimes significantly so, than the actual contributions they have made over their decades of working life and contributions.

A client has been engaged in frustrating correspondence for more than four years persuading the management of the Scheme that his entitlement is a pension rather than an Old Age grant. I myself have had fifteen telephone calls to Ms. Nelson over the matter and all I hear is that the NIS is looking into it. Frustrated with the delay, the poor fellow travelled to Guyana from the USA over the Christmas holidays only to be told that it was Christmas time and the matter would have to wait until the holidays were over!

I reported this to the General Manager several weeks ago. She said that was not good.
Continue reading Caution: Bridge Company helping to sink leaking NIS

DDL Annual Report 2014

The Stabroek News article on the performance of DDL for the year 2014 (S/N 03-24-15 DDL’s after-tax profit up 38.4%) comes three days before the annual general meeting (AGM) of the company. DDL has three institutional investors holding more than 5% of its issued shares – Trust Company (Guyana) Limited (20.58%), with which it shares some common directors, Secure International Finance Co Ltd (18.32%), a Beharry Group company, and the NIS (8%).

In most western countries the directors of public companies respect, if not fear, their institutional investors. Those directors are mindful of the consequences on share value of the disposal of a significant block of shares by any dis-satisfied institutional investor. To avoid that, it is very common for them to meet with their institutional investors before any major decision or action.

In those countries too, annual reports are expected to comply not only with laws but also with regulations and best practices. By contrast, Guyana companies seem less interested and are willing to take more risks with disclosure while institutional investors are perhaps the most silent group of shareholders, never asking a single question of the directors, or ever trying to influence company decisions. The casual observer can be forgiven for believing that there is some unwritten, unholy understanding by institutional investors not to interfere in the company’s business.

Consequently, the responsibility to carry out the searching analysis of the annual reports of public companies falls on the press since the small shareholder seldom has the expertise to do so for herself. The task is even greater when the company fails to meet the disclosure requirements of the law and regulations, or where its reporting is contradictory, or sometimes clouded in strange language.

For these reasons shareholders and the public would have appreciated reading beyond all the positives disclosed in the DDL Chairman’s report. I have always faulted this company for the ambiguity and confusion caused by its deliberate or inadvertent choice of words in reporting on its performance. For example, readers are often left wondering whether references to performance are to volumes or value, and are confused by the unexplained relationship between the Chairman’s statement that in Caribbean markets the brands experienced growth of 28% while the financial statements disclose a decline in revenue of 24%.

Shareholders would also like to know, and have a right to adequate explanation for growth of 25% in the US market but a fall in profits from $36 million to $2 million, and why the already statutorily inadequate information given for the US subsidiary is not given for the Canadian subsidiary for which all the reader is told is that DDL’s brands increased by 35%.

The Companies Act requires the directors of holding companies to give a report on the affairs of their subsidiaries – not just the after-tax profits of a select few. It says a lot about DDL’s disclosure policies that NICIL, hardly ever considered a model of accounting and reporting, has better disclosures on its subsidiaries than DDL does.

Atlantic Hotel Inc: Lies and deception from Brassington.

– total audit of project needed

The known…
Even as the construction of the Marriott Hotel nears completion and the opening soon but uncertain, the role of Winston Brassington, Chairman and CEO of Atlantic Hotel Inc., continues to raise serious questions about his honesty and integrity and those he retains to speak for him. Indeed as recent as Sunday January 18, I have had cause to expose the lack of integrity on his part and that of his spokesperson Mr. Kit Nascimento when they created a fictional column for me.

It is public knowledge that the hotel’s construction has been financed mainly from the proceeds of the sale of Government shares in the Guyana Telephone & Telegraph Company Ltd. and from other public resources diverted to or vested in the company through means that many consider completely illegal. It is also public knowledge that the National Assembly passed a motion on December 17, 2012 that, among other things, neither NICIL nor Atlantic Hotel Inc. incur further expenditure on the Hotel Project without the authorisation and approval of the National Assembly. Needless to say, the directors and officers of NICIL and AHI have ignored that motion.

It is known that the Hotel has been granted concessions rare to any entity in Guyana – even Queens Atlantic, Jagdeo’s people. Those concessions, in addition to land at below market price, are no more than crude government subsidies. It is also known that the contractor has been allowed, illegally, exemptions from the laws of Guyana which even the diplomatic community does not enjoy. Central to and facilitating every well-known violation associated with the company is Winston Brassington. See Soul for Sale series of articles on beginning February 17, 2013.
Continue reading Atlantic Hotel Inc: Lies and deception from Brassington.

Challenging the Jagdeo myth

Mr. Carl Greenidge, Finance Minister in the PNC Administration has been one of the chief targets of the PPP/C since 2011 for what they claim to be his mismanagement of the economy prior to 1992. This claim is at best one-sided and at worst totally dishonest, completely ignoring the performance of the economy when Greenidge demitted office in 1992. Perhaps as the calypsonian Chalkdust sang: “they ‘fraid Carl”.

A question for the PPP/C is if the Economic Recovery Programme (ERP) which they in opposition had dubbed Empty Rice Pot was so bad, why did they not replace it? The truth is that the ERP negotiated by Greenidge with the IMF and other international lenders and donors placed Guyana on a trend where its economic growth rate was well above anything the country has ever witnessed, before or after. Asgar Ally, riding on the wave of debt write offs initiated by Greenidge, kept the economy roaring until he was undermined by then Junior Finance Minister Bharrat Jagdeo.
Continue reading Challenging the Jagdeo myth

Jagdeo desecrated Babu John with a racist speech

In his desecration speech at Babu John on Sunday, May 8, Mr Bharrat Jagdeo said that the opposition “consistently shout about the racism of the PPP but they practise racism. They whisper campaigns…” Jagdeo thinks he is being clever by couching his racism in accusations of racism by “the opposition.” The specifics of what he had to say about the opposition constituted naked racism.

Someone needs to remind Mr Jagdeo that not only does the constitution not protect any person from “hate speeches or other expressions, in whatever form, capable of exciting hostility or ill will against any person or class of persons,” but that the Representation of the People Act (the elections act) makes it a criminal offence by any person who (a) makes or publishes or causes to be made or published any statement; or (b) takes any action, which results or can result in racial or ethnic violence or hatred among the people.

Such conduct constitutes an indictable offence for which the penalty is a fine of one hundred thousand dollars together with imprisonment for two years.

Explosive and racist speech is the last thing Guyana needs in an elections season.

It must surely be time to stamp out racism. Mr Jagdeo’s speech is a good place to start.