Guyana Focus
President David Granger and his associates are expected to continue to maintain their autocratic stance, showing disregard for increasing cronyism and corruption - in contradiction to their official stance of consultative democracy and transparency.
As a result, corruption will flourish much to the disappointment of a population which had come to expect a dramatic shift in the actions of the coalition which dethroned the PPP government for the very same reasons in 2015.
The obsession for power will increase as the larger partner in the coalition, APNU, strives to strengthen its grip on the nation. This will lead to ethnic polarization, a phenomenon which runs counter to the initial stance of the coalition. Thus, widely anticipated unity among the two major ethnic groups will remain a mere pipe dream – putting the role of the AFC in the coalition at risk.
On the economic front, the forecast of a 3.8% growth rate, up from 2.6% in the previous year, will be tough to achieve, although higher infrastructure spending might very well contribute to an uptick in growth. The anticipated increase in infrastructure spending follows a sharp cutback in spending last year.
Conversely, while the Value Added Tax (VAT) was reduced from 16% to 14%, the disposable income of the majority of the population will take a hit from having to pay the VAT on basic services such as water, electricity, medical services and prescription drugs, albeit subject to minimum thresholds. The increase in the VAT will not bode well for the population which was promised an overall reduction by the government.
The VAT grab will lead to a substantial increase in government revenues but consumer spending will be subdued due to higher taxes. This will result in higher inflation which is expected to almost double, from 1.3% in 2016 to 2.5% this year.
Workers will benefit from lower income taxes in 2017. The budget announced an increase in the current income tax threshold of $660,000 per annum to the greater of $720,000 per annum or one-third (1/3) of the employee’s salary. The Personal Income Tax rate was also reduced from 30% to 28% for individuals earning less than $2,160,000 per annum or $180,000 per month. A new tax rate of 40% was also introduced for individuals earning in excess of $2,160,000 per annum.
In the productive sectors, gold output is expected to remain strong on the back of increased foreign investments and the government’s commitment to the sector.
Agriculture production is expected to recover after a weak 2016, while sugar will remain in distress and rice production relatively flat. Although the government forecasts an increase in sugar production – off a shortfall in 2016 – it is anticipated that the future of the industry will remain uncertain. Most important, sugar workers will remain unhappy and could disrupt the government’s plans.
Incidentally, during the 2017 budget speech, it was mentioned by the Finance Minister that “money injected into sugar, in its current state, is money wasted.” It was also stated that “As currently structured, the industry would require Government’s support to the tune of $18.6 billion and $21.4 billion for the years 2017 and 2018, respectively.” Given this untenable situation, it is expected that a decision into the industry’s future will be made in 2017.
The rice industry which achieved two consecutive years of record production will come under stress due to a lack of export markets. With Venezuela no longer exchanging rice for oil, the government would be grasping at straws to find markets that are willing to buy rice at higher than world market prices, putting the industry in the same position as sugar if rice has to be sold at unprofitable prices. The only difference is that unlike sugar whose losses are picked up by the government, rice farmers will bear the brunt of lower prices, forcing them to abandon production.
The government will increase its focus on forecasting its use of potential oil revenues even though commencement of commercial production is still at least four to five years away. While oil will provide hope to the impoverished nation it will be a source of wild dreams and well-laid, corrupt plans.
Incidentally, the country’s preparation for oil could very well run in conflict with creating a “green Guyana.” Though the feasibility of the abandoned Amaila Falls Hydroelectric Project was justified by a supposedly independent consulting firm, the government will balk at going ahead with the project. On the other hand, it is doubtful whether planned wind farms will be feasible.
Notwithstanding, the government will continue to push its green agenda. While such agenda has merits it would appear the government doesn’t understand the cost of going green. It has failed to learn valuable lessons from developed nations like Germany, Spain and most likely from the USA very soon. The bottom line is that green energy is largely subsidized and Guyana cannot afford such subsidies. The country is already subsidizing electricity generation.
On the political front, the results of more than 50 forensic audits at a cost of $133 million in tax payers’ money which stemmed from allegations of corruption against the former PPP administration will most likely gather dust for the lack of evidence to lay charges.
On the social front, in spite of a commitment to reduce crime, criminals will continue to unleash fear in Guyana, leading to an increase in crime rates. In the meantime, the government will continue to claim that crime is falling and is under control. But the daily headlines, official crime statistics – though untrustworthy – and the people at large will tell a different story. It is expected that an increase in policing resources, by 20% in 2017, will alleviate the crime situation. However, an increase in crimes perpetrated by the police themselves could very well undermine the efforts of the police at large.
Incidentally, higher crime levels will lead to an increase in Guyanese fleeing the country, which is pretty much what the government may wish to see happen – as most individuals who head overseas are typically supporters of the PPP.
As oil production evolves, the border dispute with Venezuela will continue to fester with the United Nations giving the two countries this year to bring the dispute to a resolution.
There is no doubt the coalition government will have its hands full in 2017. It has to first clean its own house to regain the trust it lost in under two years. Plus it has to show greater understanding of the people’s expectations. Although it would appear to have plans to move the country forward, it does not have the human resources to implement its plans plus many of its plans are out of sync with reality. Therefore, unless it can prove itself to the people, it should very well start counting its days in power. Of course, there is always “big brother” who could lend it a helping hand but with Donald Trump set to take over Presidency in the US in a few days, the help of “big brother” is not assured.
lease revocation
Ramjattan, who was expelled from the PPP several years ago, said late PPP Founder-Leader Jagan – “that great politician and statesman of Guyana”– would never had tolerated the illegal acquisition of property.
“This is where the thing is out of context, the emotionalism, the obfuscation, that then tells you, ‘But wah y’all tekkin away the thing for? Is Cheddi Jagan.’ Well Cheddi would have been the first to condemn the preservation of his documents in misappropriated property.
People’s Progressive Party General Secretary Bharrat Jagdeo has strongly suggested that the governing A Partnership for National Unity+ Alliance For Change (APNU+AFC) would pay a hefty political price for years to come by seeking to throw out the Cheddi Jagan Research Centre from Red House.
“More and more when we study the history, it was always intended to be a temporary place for the laying of those documents, but we have Jagdeo and Anil Nandlall coming forth today as virtuous as angels saying ‘No this should not have been done’,” Ramjattan added
Himself a lawyer by profession, Ramjattan said the law was violated even if it was to store Cheddi Jaga’s papers and documents.
Police have since taken up a long-term presence inside Red House compound, even as lawyers for the State and the Cheddi Jagan Research Centre prepare to respond to each other’s court papers ahead of another High Court hearing next month. The court has agreed to prevent the Attorney General or any of his agents or servants from interfering with any of the contents of Red House.
Government has argued that buildings like Red House falling under the responsibility of the National Trust cannot be leased. Red House has been leased to the Cheddi Jagan Research Centre for GYD$12,000 per year for 99 years since 2012.
The AFC Leader disagreed with claims by the PPP that to give into President David Granger’s request that there should be a research centre for all of Guyana’s presidents would be to contaminate Jagan’s records by mixing them with Arthur Chung, Forbes Burnham, Desmond Hoyte and Granger’s. “So there is certain purity about Jagan and certain contamination about Burnham. What is wrong with these people? And look how they contaminate the appropriation of that,” said the AFC Leader. “We are not going to be diverted or obfuscated by this attachment to legacy, of in my book of one of the greatest Guyanese ever. That is where the rules get bent, it is not the rule of lawyers it is the rule of law…We have to bring back law and order,” he added.
President Granger revoked he lease on December 29, 2016 and gave the Cheddi Jagan Research Centre until December 31 to vacate the building also known as Kamana Court.
Red House was once occupied by Dr. Jagan and his family while he had been Premier of then British Guiana from 1961 to 1964.
Chairman fiasco
The forum which is open to the public is intended to further sensitize Guyanese on the importance of adhering to the democratic process of appointing a Chairman, the party said in a release yesterday.
The Party said that Granger is the first President between 1992-present to have rejected a list of names submitted by the Leader of the Opposition as required by the Constitution.
“The Party sees this as an ominous sign and an attempt by the government to derail the Constitutional process of appointment and to unilaterally install a Chairman of its choice in contravention of the letter and spirit of the Constitution. This poses a grave threat to the nation’s democracy and the PPP believes that the forum as intended is an extremely valuable mechanism to keep Guyanese informed on the process and the potential impact of its derailment”, the party said.
The forum will be addressed by the Leader of the Opposition, Bharrat Jagdeo; former Attorney General, Anil Nandlall; Nigel Hinds and other representatives of Civil Society. The public will be given an opportunity to contribute if desired.
The men are Jason Thomas, 28, of No 2 Village, East Canje Berbice and Leon Hart, 19, of Cumberland, East Canje Berbice. They appeared on Monday before Magistrate Rhondell Weaver in the New Amsterdam Magistrate’s Court charged with obtaining from Destiny Harris the sum of $800,000 while purporting to be the acting Police Commander on October 23, last in the vicinity of the Central Police Station, New Amsterdam.
The case for the prosecution is that on the day in question Thomas, who is well known to the woman, telephoned her and informed her that he was the acting Commander of Berbice and was in a position to release her husband who was incarcerated in a serious matter.
It was subsequently revealed that the person who spoke to the woman was not the commander, but the impersonator Jason Thomas.
The issue had stemmed from the arrest and subsequent remand of France, 51, of lot 55 Palmyra Village who was charged with having in his possession one 9 mm pistol and 13 live rounds around 1:00 am on Saturday October 22, last, at Palmyra, East Coast Berbice without being the holder of the relevant licence.
France was held after ranks on a mobile patrol stopped motor car PVV 2423 which was being driven by France in the vicinity of Vryheid Road, West Canje, Berbice.
He sped away sparking a high speed chase along the New Amsterdam public road which ended at his Palmyra home. France was subsequently searched and the gun and ammunition were discovered in the car. He was arrested and charged and pleaded not guilty before being remanded to jail.
Subsequently a recorded conversation allegedly between the man’s wife and someone purporting to be the Commander surfaced concerning a $1M bribe being offered for the release of France. The voice was later traced to Jason Thomas who is well known to the police.
Thomas had used cell phones 678-9963 which has the recording and 696-8378 to make the calls. After the agreement was reached between him and the woman, he informed her to wait in the vicinity of the Central Police Station and he would send someone to collect the money from her.
A sum of $800,000 of the agreed $1M amount was paid over by the woman to someone, who turned out to be Hart. This accomplice told her he was sent by the Commander to collect the money and to have the man released and ‘done the story’.
Thomas was subsequently arrested and placed in custody. He was released on station bail.
In court, Thomas was a no show. Thomas who also lives in a hotel in New Amsterdam had given his address as Uitvlugt, West Coast Demerara, when he and another man from Canje were charged in another matter of robbery with aggravation in Demerara on February 27, last.
Hart was granted bail in the sum of $150,000, but could not afford the bail and was remanded to jail.
The matter will continue March 3 in the New Amsterdam Magistrate’s Court.
The list of zero-rated items has been substantially reduced as a result of the 2017 budget. This has attracted criticism from consumers and the business community. Many previously zero-rated items are now classified as exempted items. Businesses will not be able to claim VAT refunds for any inputs to exempt goods and the general consensus is that this will lead to a passing on of costs for these items to consumers.
Zero-rated items are now mainly linked to exports. A range of medicines remain zero-rated.
Zero-rated items include:
A supply of medicines and drugs of a kind only available by prescription.
Analgesics, cough and cold preparations, antacids and anti-flatulants, laxatives, oral rehydration preparations.
Glucometers, insulin syringes, spectacles prescribed by an optometrist, crutches.
Exempted items include:
Bread made with wheat flour or whole wheat flour
Raw brown rice, raw white rice and parboiled rice
Raw brown sugar
Cooking oil – vegetable, corn and coconut oil
Cow’s milk and milk powder, evaporated milk, liquid cow’s milk
Baby formula
Baby cereal including Nestum, Gerber, Cerelac
Unprocessed wheat
Flour (all types)
Diapers
Sanitary napkins
Bleach
Soap powder
Laundry soap
Peters, a former cashier attached to the Magistrates Court, reappeared before Chief Magistrate Ann McLennan on January 12 for stealing money from the court. It is alleged that between January 12, 2012 and August 7, 2012, Peters stole $1.1million from the Magistrate’s Court.
Her attorney, Latchmie Rahamtat, told the court her client indeed was charged for a similar offense and was convicted.
Rahamat said Peters was seeking a police clearance when she visited the Criminal Investigations Department (CID) Headquarters, and was then told to appear in court on today’s date.
The prosecution did not object to bail and the Chief Magistrate granted the defendant self-bail.
The 30-room apartment complex is located on Third Street, Cummings Lodge and is owned by Shanta Baldeo. No one was injured, but most students lost all of their personal belongings including study material.
Two fire tenders and one tanker responded to a report of a fire at about 9 pm. Up to about 10 pm the fire was still raging, apparently due to insufficient water supply.
The cause of the fire was not immediately known, but one of the students who was at the upper flat told reporters that he felt heat and saw smoke and raised an alarm.
Efforts were made to extinguish the fire, but occupants said the building was quickly engulfed in flames when electrical wires began burning.
The students attend UG, CPCE and the Rajiv Gandhi Medical School.
Melissa Narine, 27, of Number 45 Village, Corentyne, told the media that she was fast asleep around 11 pm, when she was awakened by someone “flashing a torchlight” in her face.
The 7-month pregnant woman, who has a two-year-old son, explained that when she opened her eyes, she saw a man standing in front of her wearing one of her maternity dresses over his clothes with a cutlass in his hand and one of her blankets over his head. Narine said she jumped up and he asked her where her money was. Telling him she had no money the intruder placed the cutlass to her neck and again demanded cash.
The woman explained that she then attempted to push him away, but he hit her with the bedroom door, painfully raising one of her toenails in the process. He then ran downstairs, jumped on her bicycle and rode off. Downstairs, she found her bag with all her money gone. The bandit also took her jewellery. She described to the press: "It had icicle paper all over the kitchen. Biscuit everything missing, juice and drinks and so."
Narine said the bicycle the bandit escaped with cost $30,000; he also grabbed a gold chain, a gold ring, $20,000 and a bunch of artificial jewellery. After the ordeal she was taken to the hospital where she was treated for belly pain.
On the same evening at Number 46 Village, trucking service owner Kerpaul Dammar, 46, was also a victim of the lone bandit. Dammar said that at exactly 11.20 pm his wife woke up to tend to his grandson and noticed a bicycle in front of their house. He treated the matter casually believing that some drunk person who couldn't get home must have left their cycle there. But being a licensed firearm holder he loaded his gun and sat on his bed waiting to see who would come to retrieve the bicycle.
At 12.25 am, he said the dogs started barking and someone in black clothing jumped the side gate and walked beside his truck. He said he discharged a warning shot to see if he will surrender but the intruder did not. He said he fired three more rounds just to scare him off.
The man ran, picked up the bicycle and rode off. Dammar said he and his son tried to track the intruder but without luck. They however found the black shirt he had over his head.
When Dammar returned home he found that his bottom flat had been ransacked. “We had some chocolates and some foreign sweets in that bus front seat, he took it. He took my elder grandson backpack with books,” Dammar said, adding that he would value the backpack at $8000, since it had all of his grandson’s text books.
“He mix tea and drink it and eat biscuit and he eat out the apple and grapes in the freezer,” Dammar said. “In the cupboard we had two bottle of pepper sauce, me don’t know why he take it.” Dammar explained that the man also escaped with $4,000.
Meanwhile, a lone bandit also attempted to break into the home of Soamwattie Pertab, 77, of Number 46 Village around 12:30 am on Sunday. She said her husband heard a noise as if someone was breaking something downstairs and woke her up. She said she immediately put on the downstairs light but remained quiet, just listening for a while. Nothing was heard. So they then ventured into their downstairs kitchen where she saw a hand covered with a towel come through the broken window.
Realizing that the couple had phoned the police, the bandit made an escape before actually entering the home. He left the towel on the window, Pertab said, adding that she has lived with her 79-year-old husband at that residence for over 60 years and no one had ever attempted to break in. The woman is now afraid that a second attempt would be made.
Meanwhile, according to information reported the perpetrator also broke into another woman’s house in the Number 45 Village.
Homeowners are calling on the police to capture the bandit and ncrease patrols.
To advertise in ICW call
Call 905-738-5005