Guyana Focus
Guyana’s already struggling bauxite industry is in for even tougher times as a result of the unintended consequences of US sanctions against Oleg Deripaska, the major shareholder of United Company (UC) Rusal, which owns a 90% stake in the Bauxite Company of Guyana Incorporated (BCGI). The far-reaching consequences of the sanctions do not only affect Rusal but also any entities or persons dealing with Rusal; or other firms and individuals affected by the sanctions. This means that the German shipping
According to the US Treasury Department, US entities would be “generally prohibited” from dealings with the persons and firms on the sanctions list, while companies outside the United States could face sanctions for “knowingly facilitating significant transactions for or on behalf of” the sanctioned entities.
The sanctions were announced last month by the US Treasury Department against seven Russian oligarchs, 12 companies either owned or controlled by them; and 17 senior Government officials, who the US government alleged were profiting from the Russian government’s engagement in “a range of malign activities” around the world.
Among the sanctioned individuals is Deripaska, the primary owner of London Stock Exchange listed, EN+ Group Plc, which is the co-owner of the Moscow and Hong Kong Stock Exchange listed company, UC Company Rusal.
Rusal is one of the largest aluminum producers in the world and owns assets in Italy, Ireland, Sweden, Nigeria, Guyana and Guinea, as well as a stake in Australia’s QAL, the world’s top alumina refinery.
The latest round of sanctions against Russian individuals and companies marks a sharp deterioration in the relationship between the US and Russia. Tensions between the US and Russia escalated following the poisoning of former Russian spy Sergei Skripal and his daughter in the UK by allegedly using a Russian developed nerve agent; conflicts over the Syrian civil war; and for alleged Russian interference in the last US elections.
This Skripal incident led to the expulsions of Russian diplomats by the US, UK, Canada and more than 20 other countries. The Russians reciprocated by expelling diplomats of the respective countries.
Previously, asset freezes and travel bans were imposed on individuals for their role in Russia’s annexation of Crimea; support for Russia’s military meddling in eastern Ukraine and for illegal cyber activity.
The US has alleged that Deripaska has threatened the lives of business rivals, illegally wiretapped a government official, took part in extortion and racketeering, murdered a businessman, and has links to Russian organized crime.
Incidentally, in Guyana, the country’s former Attorney General and its Finance Minister have been charged for selling a 4.7 acres plot of land at Liliendaal, East Coast Demerara to Rusal a decade ago below market value. The land was purportedly sold for the construction of a vacation home for Deripaska but remains neglected, with no known plans for its development.
Given Rusal’s importance in the global aluminum market, the US the U.S. Treasury has since softened its stance on Rusal’s sanctions, which might be beneficial to Guyana. On April 23, it announced that it would extend by five months, to October 23, the deadline companies had to wind down their dealings with Rusal. This might allow Oldendorff Carriers to continue to transport Guyana’s bauxite until then.
The government also noted that it would consider lifting the sanctions if Deripaska ceded control of the company. Earlier in February this year, prior to the enactment of sanctions, Deripaska reportedly stepped down as president of EN+ Group plc
He is also is expected to push forward with plans to relinquish control of EN+ after the US government announced that it would give shareholders until June 6 to divest their holdings in the company. Press reports indicate that EN+ has received initial approaches for Deripaska’s stake, which he plans to reduce from 70 per cent to below 50 per cent.
However, even if Deripaska relinquishes control of EN+ and consequently Rusal, investors are expected to wait for months before the sanctions are lifted. Plus, the US will vet the buyers of Deripaska’s shares to ensure they are not simply acting on his behalf.
In the meanwhile, Guyana’s Berbice bauxite operations remain in limbo as a result of US sanctions. However, its Linden operations, owned by the Chinese-owned Bosai Minerals Group, continues to operate normally.
Bosai’s entered Guyana when it bought the assets of the Canadian company IAMGOLD in December 2006 for US$28 million in cash and assumed US$18 million in third-party debt held by the seller. The company commenced operations in May 2007.
Although Guyana’s bauxite industry has two foreign players – Rusal and Bosai - production has been falling in recent years, from 2.42 million tonnes in 2007 to 1.05 million in 2017. Should sanctions on Rusal remain – at least in the foreseeable future - production will fall even more. But the setback on the economy will not be significant because of the industry’s marginal contribution to GDP.
However, Rusal currently employs about 500 individuals whose jobs will be threatened, even if only temporarily.
Winston Brassington
arriving in Guyana
They were arraigned before Chief Magistrate, Ann Mc Lennan who granted them GY$2 million bail on each of the three joint charges. She declined a request by Defence Lawyer, Anil Nandlall for the bail to be reduced to GY$1 million for all three charges per person, but instead allowed the bail to be surety.
Nandlall later told reporters that his defendants had to resort to mobilising cash to post the bail by a Manager’s Cheque because Singh and Brassington would have been sent to the Georgetown Prison pending the valuation of a property and the submission of transport as a surety.
The charges were laid indictably. Singh and Brassington are due to return to court on June 5, 2018 by which time Special Prosecutor, Trenton Lake said he would apply for the case to be trialed summarily. Indictable charges would require a preliminary inquiry to determine if they should face trial by a High Court judge and jury.
The maximum penalty for the offence if found guilty is one year’s imprisonment.
Outside the courtroom, Nandlall told reporters that he would ask the Magistrate to suspend hearing for the three charges until the High Court hands down a decision on a case he has filed challenging the legality of the said charges.
Responding, Nandlall said “means” was not the proper yardstick by which to determine whether bail should be granted but whether the accused persons would not appear to stand trial. “There is nothing that the prosecution has indicated that can lead Your Worship to even draw the inference that they will not turn up,” Nandlall told the magistrate, adding that considerations should be their track record, antecedents, status and prevalence of the offence.
Singh – in his capacity as then Finance Minister and NICIL Chairman – and Brassington on May 14, 2011 by way of an agreement of sale and purchase “acted recklessly” when they sold Multicinema Guyana Inc. a 10-acre tract of State land at Turkeyen for GY$185,037,000 without first having procured a valuation from a competent valuation officer.
Similarly, they are accused of selling 103 acres of state land, by an agreement of sale and purchase, to National Hardware Guyana Limited for GY$598,659,398 (VAT exclusive) without first procuring a valuation. The third and similar charge also has to do with the sale of 4.7 acres of land for GY$150 million to Scady Business Corporation, “knowing that the said property was valued at GY$340 million by Rodrigues Architects Associate, a competent valuation officer.”
Former President, Donald Ramotar and former Prime Minister Samuel Hinds were among those present inside and outside the courtroom. Former President Bharrat Jagdeo was not there.
Moments after Singh and Brassington were placed in the prisoners dock, the case was called at 1:15 PM. The charges were read to the accused who stood expressionless and clearly left everything to their battery of defence lawyers – Nandlall, Ronald Burch-Smith, Mark Waldron, Sase Gunraj, Priya Manickchand, Marcia Nadir-Sharma and Euclin Gomes.
Shortly after the magistrate decided on bail, Gomes left the courtroom at 1:54 PM.
A quite slim 45-year old Singh was clad in a dark blue suit and Brassington in a cream shirt-jack and dark pants.
Defence Lawyer Nandlall asked the Court for the Administration of Justice Act (AJA) to be invoked to allow for the charges to be read summarily instead of indictably, but Lake objected on the grounds that he was not ready to disclose the files on these charges until possibly other matters are addressed. “We are still engaging in some additional investigations and we know once the AJA is applied, then it is for us to disclose the statements in our possession and I respectfully submit that it will be premature to apply the AJA,” he said.
Nandlall repeatedly told the court that no effort was made to serve Singh and Brassington with the summons, although they reside at Cowan Street, Kingston, Georgetown and Goedverwagting, East Coast Demerara. Nandlall said it was only on Monday that Singh’s summons was served on his wife who is employed at the Auditor General’s Office and their children attend school in Guyana.
Nandlall later told reporters that his clients work overseas.
He said although the summons were never served on the accused men personally they voluntarily appeared in court and there was no reason why they would not attend court whenever the case is called. “He (Singh) will plead not guilty and he is most anxious to assert and vindicate his innocence,” said Nandlall who noted that the charges are he first of their kind in Guyana.
Nandlall, who is a senior PPP member, asked the court for an opportunity to highlight that he believed the charges were politically motivated. “These charges are an expression of political victimization against my clients and it is unfortunate that the administration of justice has to be contaminated in the manner that it has, but that is the reality,” he said.
Among the PPP members and supporters, who crammed the courtroom, included Manzoor Nadir, Kwame Mc Coy, Neend ‘Neil’ Kumar, Brian Young, Robeson Benn, Harrynarine Nawbatt, Juan Edghill, Mitradevi Ally, and Zulfikar Mustapha.
Georgetown – Surinamese authorities have confirmed that 30 persons are in custody as investigations intensify into last week’s piracy attacks that have left over one dozen Guyanese fishermen dead.
This was disclosed by the Minister of Justice and Police, Stuart Getrouw at a joint press conference held by the Surinamese and Guyanese Governments on Monday at the Press Centre of the Office of the President at Kleine Combeweg, Paramaribo.
Also present were Vice President and Minister of Public Security Khemraj Ramjattan; Suriname’s Minister of Agriculture, Animal Husbandry and Fisheries, Lekhram Soerdjan and Minister of Defense Ronni Benschop; Guyana Ambassador to Suriname, Keith George, as well as high ranking officers from the police forces of both countries..
According to information, the 30 men were arrested on both land and sea but when quizzed on the details of those in custody, Minister Getrouw declined to comment as the investigations are ongoing and divulging details may compromise the probe.
He, however, did confirm that the status and details surrounding the investigations and those in custody have been disclosed to the Guyanese delegation.
“We had a very fruitful discussion prior to the press conference this morning (Monday), where the Guyanese delegation was briefed on the actions of the Surinamese Police and they had a session where ideas and intelligence were shared, strategies were discussed to prevent future occurrences and after the press conference they will continue to meet with the Surinamese police,” he said.
Minister Ramjattan has also confirmed that the two countries have been working in tandem and from his end they have supplied critical information that was requested by the Surinamese.
“I must congratulate the efforts being done by the Surinamese authorities [in] helping to [bring] to justice the people who were involved here and ensure there will be a continuation of the investigations.”
He continued that only “intelligence’’ was requested by the Surinamese from his end and he is satisfied with the way the investigations have gone thus far, noting that a lot more is still to be done as it relates to retrieving the other bodies and identification as well.
“Part of why I am here is to ensure the cooperation and sharing of intelligence between the two countries to ensure justice is done. Whatever support is needed by the Surinamese authorities [from] the Guyanese authorities that support will be given so we can find the culprits, the criminals here, and the evidence so that they can be brought to justice”.
Among the men in custody is one of the alleged pirate, “Crackhead” who reportedly is a key player in the execution of the attack. Local press reports state that the man has reportedly confessed to killing at least five of the men during the attack.
The Guyana police have three persons in custody, one in ‘C’ Division and two in `B’ Division. Minister Ramjattan has confirmed that a stay order was granted beyond the 72 hours period, as investigators need a little more time to compile the evidence to present to the court.
Since the piracy attack on the 27th of April, boat owners have docked their vessels out of fear of losing their lives and property. Many fishermen have been calling for the issuance of firearms licences to defend themselves while others have been asking for the Coast Guard to escort them out to sea.
“Where we are fishing the coast guard and them boats don’t reach there, so if they can go with us we can go out tomorrow and all, but unless we get security and know the people and the boats safe we won’t go out” said Hemanlall Ramsarran, the owner of the boat on which Sherwin Lovell, Ganesh Persaud, Glenroy Jones, Gowkarran Outar and Ganesh “Vicky’ Persaud were on.
Minister Getrouw told reporters at the press conference, that the concerns and the suggestions made by the boat owners, as well as fishermen, have been taken into consideration and he has requested that they remain docked for a week as they are currently working to put measures in place.
He assured that while he would not disclose the details, the safety of the fisherfolk is paramount to both countries.
The incident has led to a shortage of fish on the local market in Suriname with some suppliers allegedly hiking their prices by some 30 per cent. It is anticipated this may increase further if the men refuse to return to sea.
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