Cheddi Jagan International Airport Corporation racks up heavy losses; questions about where the income goes: Part 2 – Airport Extension

Introduction
In July last year under the caption ‘No such thing as a free chow mein’ I wrote critically of the process leading up to the decision to undertake a proposed expansion project at the Cheddi Jagan International Airport. Let us recall that the Minister of Public Works and Communication Robeson Benn had explained that “we [meaning the government] had to enter into an agreement because we had a very narrow window in September where a Chinese Vice Premier came to the Caribbean with several billion dollars to fund projects and it was the only opportunity we had then to fund this undertaking.” What follows in this column shows how dangerously absurd it was to make such a multi-million US dollar contract for an even more absurdly outlandish project. Because of the substantial expenditure to which the Government of Guyana is committing the taxpayers of this country, I will begin by outlining the provisions of the contract for the extension of Cheddi Jagan International Airport and will follow this up with a review of the government Concessional Loan Agreement signed between the Government of Guyana and Export-Import Bank of China (EXIM).

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There was no ‘sleight of hand’ involved in the fixing of the national minimum wage

Your editorial ‘Poverty and the minimum wage’ (SN, June 19) falls short of the usually high standard that makes a Stabroek News editorial such a pleasure to read and a work of considerable authority. It is incorrect to apply the estimated unemployment rate to the total number of every woman, man and child to arrive at the number of unemployed persons in the country. In fact, in unemployment statistics only the active workforce is considered.

A huge problem I have with the editorial is your unsupported description of the fixing of a national minimum wage for workers in every sector of the economy as a “sleight of hand.” The only suggestion you offer is that the government is seeking to divest itself of any responsibility to offer welfare/public assistance to some 31,000 who will move out of the abject poverty group. Where is the evidence of the percentage of persons in the abject poverty group who now receive such assistance, or is this mere speculation? And second, of any strict means test being applied in the decision on the payment of public assistance? In fact, in the case of old age pensions, the government does not apply the means test required by the Old Age Pensions Act which I have argued it should, since it causes pensions to be paid to those not legally entitled, at the expense of those really in need.

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GPL has to be accountable, transparent and efficient

I refer to the letter ‘Deferred Tax was not included in GPL’s rate computation’ (SN, June 13) written by Mr Nizam Ali of Nizam Ali & Company, the firm which audited the 2012 financial statements of Guyana Power and Light and which signed the Final Return Certificate (FRC) for GPL’s proposed tariff increase of 26.7%.

Perhaps Mr Ali did not see press release No 33 issued by GPL and dated May 8, 2013, so I quote for his benefit the last sentence of paragraph 2 of the release which states:

“The GPL Final Return Certificate (FRC) was accompanied by a Notice of Compliance issued by an independent firm of accountants and GPL’s 2012 audited accounts that show GPL losing $7.6 billion in 2012” (emphasis mine).

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