Guyana Focus
NICIL Head: Entity too broke to
go after debtors
Official says GuyOil is the only company holding things together
(Kaieteur News) – The National Industrial and Commercial Investments Limited (NICIL) has found itself in a rather worrying state of affairs.
The entity which was once used as a parallel treasury is now owed millions of dollars by various companies and state agencies. And that’s not the worst part. NICIL is actually too broke to even go after all of its debtors.
This was recently explained to Kaieteur News by NICIL Head, Horace James.
The official explained that NICIL is unable to go after its debtors as its investments in the Berbice Bridge and the Marriott Hotel “do not bring in a cent.” He said that the Guyana Oil Company (GuyOil) is the only company which has been submitting substantial dividends. James said that GuyOil is the only company that is holding things together.
The NICIL officer said, “As it stands, NICIL is in need of liquid cash. The main reason affecting our cash position is all our investments have been tied up in the Marriott. Also, we have a lot of nonpaying people that we now have in court.”
James said that some of the debtors include Caricom Insurance – $121M; Hong Kong Golden Telecom Company – US$5M; BaiShanLin – $25M, Guyana Sugar Corporation (GuySuCo) – $17M and Sithe Global – $151M. The NICIL Head complained that the total money owed by all of its debtors is $1.7B.
He added, “The reality is that NICIL does not have money to go after its debtors. So our biggest concern is going behind our debtors. But remember, it is an expensive thing.”
Last year, NICIL’s Chairman, Dr. Maurice Odle, bemoaned the fact that under the previous administration, the entity was run with little to no transparency and accountability for investment decisions. He also spoke against the way in which taxpayers were kept in the dark about the happenings of the state-owned company.
In the forensic audit report which was prepared by Chartered Accountant, Anand Goolsarran, it was recommended that the entity be closed down and a small department opened under the Ministry of Finance, if Government deems it necessary.
It was explained that the reason for such a recommendation was premised on the fact that NICIL was initially established for the purpose of privatization of state assets. That was done in two phases in the 1990s.
Since that phase ended years ago, the report recommends that there is no need for NICIL to remain a company. It says that it should be liquidated and Government should make moves to establish a department to manage the assets being held by the company.
Finance Minister Winston Jordan said, however, that he is not inclined to go this route, and has since made it clear that the entity is necessary.
Meanwhile, Goolsarran had told Kaieteur News that he is deeply disappointed that recommendations to shut down NICIL have not been implemented. He reminded that it was this very administration which had at one time, called for the closure of NICIL when it sat on the opposition benches.
The former Auditor General stated that this new Government had given the commitment that it would not use NICIL in an abusive manner.
“However, what Government must see is the bigger picture. What will happen when there is another government in place? Too late shall be the cry then. It is a grave disappointment and NICIL should without question be brought to a halt. It practically allows too many avenues for eerie forms of corruption which the nation has witnessed under the previous administration,” expressed Goolsarran.
The anti-corruption activist also said that the forensic audit which he prepared provides irrefutable grounds which show how financial lawlessness took place at unimaginable scales at the entity.
Goolsarran said that he is in agreement with other financial minds who believe that the NICIL Board seems uninterested in going after those persons who committed grave acts within the state-owned entity.
Goolsarran recalled that a Cabinet decision was made for NICIL’s former CEO, Winston Brassington and his Deputy, Marcia Nadir-Sharma, to be sent on leave pending the outcome of investigations.
The former Auditor General said it is troubling that months later, not a word has been said by NICIL to the nation regarding the status of these investigations. He stressed that NICIL needs to remove itself from the veil of secrecy.
Goolsarran nevertheless maintained that “NICIL has been at the centre of some of the worst corrupt acts of our time and it must be closed down.”
The entity which was once used as a parallel treasury is now owed millions of dollars by various companies and state agencies. And that’s not the worst part. NICIL is actually too broke to even go after all of its debtors.
This was recently explained to Kaieteur News by NICIL Head, Horace James.
The official explained that NICIL is unable to go after its debtors as its investments in the Berbice Bridge and the Marriott Hotel “do not bring in a cent.” He said that the Guyana Oil Company (GuyOil) is the only company which has been submitting substantial dividends. James said that GuyOil is the only company that is holding things together.
The NICIL officer said, “As it stands, NICIL is in need of liquid cash. The main reason affecting our cash position is all our investments have been tied up in the Marriott. Also, we have a lot of nonpaying people that we now have in court.”
James said that some of the debtors include Caricom Insurance – $121M; Hong Kong Golden Telecom Company – US$5M; BaiShanLin – $25M, Guyana Sugar Corporation (GuySuCo) – $17M and Sithe Global – $151M. The NICIL Head complained that the total money owed by all of its debtors is $1.7B.
He added, “The reality is that NICIL does not have money to go after its debtors. So our biggest concern is going behind our debtors. But remember, it is an expensive thing.”
Last year, NICIL’s Chairman, Dr. Maurice Odle, bemoaned the fact that under the previous administration, the entity was run with little to no transparency and accountability for investment decisions. He also spoke against the way in which taxpayers were kept in the dark about the happenings of the state-owned company.
In the forensic audit report which was prepared by Chartered Accountant, Anand Goolsarran, it was recommended that the entity be closed down and a small department opened under the Ministry of Finance, if Government deems it necessary.
It was explained that the reason for such a recommendation was premised on the fact that NICIL was initially established for the purpose of privatization of state assets. That was done in two phases in the 1990s.
Since that phase ended years ago, the report recommends that there is no need for NICIL to remain a company. It says that it should be liquidated and Government should make moves to establish a department to manage the assets being held by the company.
Finance Minister Winston Jordan said, however, that he is not inclined to go this route, and has since made it clear that the entity is necessary.
Meanwhile, Goolsarran had told Kaieteur News that he is deeply disappointed that recommendations to shut down NICIL have not been implemented. He reminded that it was this very administration which had at one time, called for the closure of NICIL when it sat on the opposition benches.
The former Auditor General stated that this new Government had given the commitment that it would not use NICIL in an abusive manner.
“However, what Government must see is the bigger picture. What will happen when there is another government in place? Too late shall be the cry then. It is a grave disappointment and NICIL should without question be brought to a halt. It practically allows too many avenues for eerie forms of corruption which the nation has witnessed under the previous administration,” expressed Goolsarran.
The anti-corruption activist also said that the forensic audit which he prepared provides irrefutable grounds which show how financial lawlessness took place at unimaginable scales at the entity.
Goolsarran said that he is in agreement with other financial minds who believe that the NICIL Board seems uninterested in going after those persons who committed grave acts within the state-owned entity.
Goolsarran recalled that a Cabinet decision was made for NICIL’s former CEO, Winston Brassington and his Deputy, Marcia Nadir-Sharma, to be sent on leave pending the outcome of investigations.
The former Auditor General said it is troubling that months later, not a word has been said by NICIL to the nation regarding the status of these investigations. He stressed that NICIL needs to remove itself from the veil of secrecy.
Goolsarran nevertheless maintained that “NICIL has been at the centre of some of the worst corrupt acts of our time and it must be closed down.”
Georgetown – Opposition Leader Bharrat Jagdeo has said that he has gotten no word from President David Granger on consultations for the appointments of the Chancellor and Chief Justice and he is concerned about this delay.
“I haven’t gotten any word from him,” Jagdeo told reporters on Friday, while noting that it is the President who has to initiate the process.
“The thing is that there are lots of things I’m not hearing from the President on and I am concerned about all of them,” he added.
A panel, comprising retired justices Claudette Singh and James Patterson along with former University of Guyana Vice-Chancellor Harold Lutchman, was set up to review the applications received and recommend to Granger a candidate for each of the two posts. Government, weeks before acting Chancellor Justice Carl Singh retired, had invited persons to apply for the two positions. The applications for both posts were closed in January.
Asked for an update on the appointments almost two weeks ago, Granger stated that the panel had interviewed some applicants and the recommendations have been made. It is unclear how many persons applied for the two posts and whether the bulk are locally-based. Media reports have since confirmed that at least two overseas-based Guyanese judicial officers had applied for the post of Chancellor and one is likely to be the successful candidate.
At present, Justice Roxane George SC is acting as Chief Justice, while Justice Yonette Cummings-Edwards is the acting Chancellor
The President spoke of a successful applicant but did not identify for which post. He said that the person was being contacted to determine whether he would accept the nomination.
Granger declined to name the person, saying that he could not do so without the approval of the candidate. “Of course I would like to have the opportunity to consult with the Leader of the Opposition,” he added.
Asked how soon the public could see those appointments being made, he said that he expected by early August.
Under Article 127(1) of the Constitution, the President needs to obtain the agreement of the Opposition Leader before appointing both office holders following consultations.
“I haven’t gotten any word from him,” Jagdeo told reporters on Friday, while noting that it is the President who has to initiate the process.
“The thing is that there are lots of things I’m not hearing from the President on and I am concerned about all of them,” he added.
A panel, comprising retired justices Claudette Singh and James Patterson along with former University of Guyana Vice-Chancellor Harold Lutchman, was set up to review the applications received and recommend to Granger a candidate for each of the two posts. Government, weeks before acting Chancellor Justice Carl Singh retired, had invited persons to apply for the two positions. The applications for both posts were closed in January.
Asked for an update on the appointments almost two weeks ago, Granger stated that the panel had interviewed some applicants and the recommendations have been made. It is unclear how many persons applied for the two posts and whether the bulk are locally-based. Media reports have since confirmed that at least two overseas-based Guyanese judicial officers had applied for the post of Chancellor and one is likely to be the successful candidate.
At present, Justice Roxane George SC is acting as Chief Justice, while Justice Yonette Cummings-Edwards is the acting Chancellor
The President spoke of a successful applicant but did not identify for which post. He said that the person was being contacted to determine whether he would accept the nomination.
Granger declined to name the person, saying that he could not do so without the approval of the candidate. “Of course I would like to have the opportunity to consult with the Leader of the Opposition,” he added.
Asked how soon the public could see those appointments being made, he said that he expected by early August.
Under Article 127(1) of the Constitution, the President needs to obtain the agreement of the Opposition Leader before appointing both office holders following consultations.
(Kaieteur News) – Persons who spoke on condition of anonymity have highlighted a possible case of conflict of interest in the relationship between the Mangal brothers, the Government of Guyana and ExxonMobil.
Dr. Jan Mangal is one of the government’s main advisors on oil. He occupies an Office at the Ministry of the Presidency. Dr. Mangal is supposed to help government secure the best deal it can with ExxonMobil and in other areas help Government make wise policies for all things relating to oil.
His brother, Lars Mangal, is working with ExxonMobil. He recently won a bid to construct an onshore facility for ExxonMobil.
In March, Minister of State Joseph Harmon announced that Dr. Jan Mangal was appointed as Petroleum Advisor.
Harmon said that Dr. Mangal is contracted to advise Government on the development of the petroleum industry. He will be advising the Minister and the Ministry of Natural Resources on matters of policy.
Dr. Mangal said that he will be looking at the issue of energy generation in a holistic manner in keeping with the country’s ‘green agenda’. He said, too, that it’s not only the power sector and the green agenda but it’s also about infrastructure, the revenue from the petroleum and the needs of the sector as whole.
Dr. Mangal has a Doctorate in Offshore Geotechnical Engineering from the University of Oxford and a Bachelor’s Degree in Civil Engineering from the University of Edinburg. He worked in marine and oil and gas industries for the past 18 years in various parts of the world including the United States, West Africa, and the Philippines.
Dr. Jan Mangal’s brother, Lars Mangal, has established a company, Totaltec Oilfield Services. The company which was established in 2016 has partnered with ExxonMobil.
Guyana Shore Base Incorporated (GYSBI) is currently constructing an onshore base facility to service ExxonMobil’s offshore operations. The site is located at the Muneshwers wharf in Houston, East Bank, Demerara. The wharf is being converted from a container port into the onshore base facility. GYSBI is a partnership between Munesh-wers Limited, Pacific Rim Constructors, Totaltec Oilfield Services and LED Offshore.
The 28-acre warehousing and logistics base will see services that were previously accessed in Trinidad and Tobago by Exxon, being brought to Guyana. Those services include port facilities, accommodations on site, fuel bunkering, bulk cementing and mud plants.
The offshore facility will employ an estimated 100 persons directly, and 200-300 persons indirectly when it is fully operational.
Dr. Jan Mangal is one of the government’s main advisors on oil. He occupies an Office at the Ministry of the Presidency. Dr. Mangal is supposed to help government secure the best deal it can with ExxonMobil and in other areas help Government make wise policies for all things relating to oil.
His brother, Lars Mangal, is working with ExxonMobil. He recently won a bid to construct an onshore facility for ExxonMobil.
In March, Minister of State Joseph Harmon announced that Dr. Jan Mangal was appointed as Petroleum Advisor.
Harmon said that Dr. Mangal is contracted to advise Government on the development of the petroleum industry. He will be advising the Minister and the Ministry of Natural Resources on matters of policy.
Dr. Mangal said that he will be looking at the issue of energy generation in a holistic manner in keeping with the country’s ‘green agenda’. He said, too, that it’s not only the power sector and the green agenda but it’s also about infrastructure, the revenue from the petroleum and the needs of the sector as whole.
Dr. Mangal has a Doctorate in Offshore Geotechnical Engineering from the University of Oxford and a Bachelor’s Degree in Civil Engineering from the University of Edinburg. He worked in marine and oil and gas industries for the past 18 years in various parts of the world including the United States, West Africa, and the Philippines.
Dr. Jan Mangal’s brother, Lars Mangal, has established a company, Totaltec Oilfield Services. The company which was established in 2016 has partnered with ExxonMobil.
Guyana Shore Base Incorporated (GYSBI) is currently constructing an onshore base facility to service ExxonMobil’s offshore operations. The site is located at the Muneshwers wharf in Houston, East Bank, Demerara. The wharf is being converted from a container port into the onshore base facility. GYSBI is a partnership between Munesh-wers Limited, Pacific Rim Constructors, Totaltec Oilfield Services and LED Offshore.
The 28-acre warehousing and logistics base will see services that were previously accessed in Trinidad and Tobago by Exxon, being brought to Guyana. Those services include port facilities, accommodations on site, fuel bunkering, bulk cementing and mud plants.
The offshore facility will employ an estimated 100 persons directly, and 200-300 persons indirectly when it is fully operational.
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