NICIL’s accounts could withstand scrutiny – Winston Brassington

–more than Gy$20B in dividends paid into Consolidated Fund in past 20 years

In a shocking twist in the controversy about the financial status of the National Industrial and Commercial Investments Limited (NICIL), its executive director Winston Brassington on Friday, May 11, disclosed that as of March month-end, the entity had Gy$ 700 million in its coffers, pouring cold water on the Alliance For Change’s guesstimate of Gy$ 50 billion. This figure represents all of the government holding company’s monies, including those being held in an escrow account, but not funds from its subsidiaries.

Brassington told Guyana Times International in an interview that he continues to be befuddled by the AFC’s claims and derision of the work of NICIL, which were inimical to the country’s development, as they could potentially derail investments. At a recent news conference, Ramjattan had argued that President Donald Ramotar’s and ministers’ explanations on why they are not handing over the money from NICIL’s account to the Consolidated Fund are quite ridiculous.

He said the highest law of the country, the Constitution, makes it quite clear that all money, all revenue, raised or received by Guyana shall be paid into, and form, one Consolidated Fund. Failure to hand over the money from NICIL is a blatant breach of the Constitution, Ramjattan said.

Asked about his Gy$ 50 billion claims, Ramjattan said that the AFC is not prepared to argue the semantics of whether there is Gy$ 50 billion, or more, or less in the NICIL account.

“The fact of the matter is that the money, whatever there is, must be handed over to the Consolidated Fund. So says the Constitution. An audit will prove how much should have been in the account,” Ramjattan declared.

He said the AFC was prepared to work with the government and the A Partnership for National Unity (APNU) to have the NICIL monies, the Lotto funds and other accounts transferred to the Consolidated Fund. But labelling the AFC chairman’s figures as “jumbie arithmetic”, Brassington said the accounts of NICIL could stand up to scrutiny. He said the AFC had presented estimates of what it thinks might be held by NICIL, but it has not shown how the money was derived.

“We have paid into the treasury in the past 20 years some Gy$ 20 billion,” Brassington disclosed, urging the opposition to spend time reading the budget estimates where this information could be found.

“If Ramjattan would spend time reading the budget estimates then he would see what our contribution to the treasury has been over the years.” Asked what would be his reaction if the opposition does not believe that the sum of Gy$ 700 million is the company’s balance, Brassington said: “If they reject it, we are accountable, so they can check with the Auditor General. They should put up their calculations because we are ready to sit down and explain our figures.”

Ramjattan had told reporters that reputable sources have estimated that more than Gy$ 50 billion is supposed to be in the NICIL account.

“We understand there were many sales of lands… to GBTI, I think that was half a billion dollars, and over the years there were a number of transactions that accrued billions of dollars. And the last report was in 2003 and there it is recorded that revenues in NICIL amounted to some Gy$ 33 billion,” Ramjattan underscored.

He had also factored in the proposed sale of government’s 20 per cent share in GT& T for US$ 30 million, as monies being held by NICIL. However, Brassington explained that while government has agreed to sell the shares, the deal has not been completed.

Earlier this week, NICIL chairman, Finance Minister Dr Ashni Singh had assured the public that there is nothing sinister occurring as it relates to the money acquired by the company over the years.

At a media briefing held on Wednesday, Dr Singh reiterated that NICIL’s operations are governed by the Companies Act and has been managed, according to the stipulations therein. The company’s accounts, he added, have been audited by the Auditor General, and it has made public details of every private sector transaction. He dismissed the arguments being put forward by the combined opposition that there must be a reason government is not disclosing the exact sum sitting in NICIL’s accounts.

“Their arguments cannot withstand the first round of scrutiny,” Dr Singh told reporters at the National Communications Network (NCN) studios. He said the Gy$ 50 billion that is being peddled in the public domain by some who perceive themselves to be commentators, as being in NICIL’s accounts is incredible and there is no evidence to support the claim.

Head of the Presidential Secretariat, Dr Roger Luncheon defended the government holding company and those that manage it. “The numbers speak to different matters and I have absolutely no difficulty in identifying that Gy$ 50 billion in liquid cash in the coffers of NICIL is a figment of Ramjattan’s imagination or whoever said that…”