Dear Editor,
The recent disclosure by the PPP gov’t that Guyana will buy over the Berbice Bridge carries the deathly underlying themes of fraud, theft and corruption. The Berbice Bridge, which was opened on December 23, 2008 was built as a “Build-Own-Operate-Transfer” (BOOT) project.
This is a simple legal contract: private investors get to run the bridge and collect tolls for 21 years to make back their money plus profit. At the end of that term—which for this bridge is roughly 2027/2028—the law mandates that the bridge be handed over to the people of Guyana for the symbolic price of one dollar.
The bridge was built by the companies, Bosch Rexroth and Mabey & Johnson at a cost of US $40 Million (GYD $8.2 billion). Under the Concession Agreement – an Agreement has never been made public – Guyana would own the structure outright after 21 years therefore from 2006 the concession would expire in 2027.
Instead of waiting for a year or two the Government has created a problem then offers a solution: it will buy the Bridge. Massive amounts of taxpayers’ money would once again be misdirected into the pockets of investors, many of whom have close ties to the chief honcho and de facto President. Here is a historical breakdown of the finances.
New GPC, owned by Bobby Ramroop, has 20% common shares together with 2 directors on the board while Queens Atlantic, also owned by Bobby Ramroop also has 20% shares. All these shares are gov’t backed, meaning there is guaranteed income. NIS, which has invested 2.9 billion of its pension funds – 35% of cost with 20% shares- is yet to recover its investment.
It is noteworthy that NBS declined to invest any funds in another of Jagdeo’s project; the demise of its director, Maurice Arjoon, who was subsequently falsely charged is well documented. Having won his case, that went all the way to the CCJ, he is yet to receive his payment.
Also, CLICO, in which NIS had 5.8 billion invested at end 2009, went into bankruptcy under the Jagdeo presidency and was put Judicial Management and subsequently liquidated in 2010. The NIS money evaporated while CLICO which had 600 million invested in the bridge was forced to liquidate at ‘pennies on the dollar’. Guess who bought bridge shares? The New GPC!
Hand in Hand Insurance, headed by the brother of Mike Brassington, put up 400 million and received 10% shares thus 3 companies (Hand-in Hand, New GPC and Queens Atlantic) that invested a total of 30% finance has 50% voting rights! The most painful part of this circus is the fate of the NIS.
While the government claims the NIS has received returns on its $2.5 billion investment, the scheme itself continues to operate at a massive deficit—standing at roughly $2.5 billion in the red. The subsidies that removed tolls was welcomed by drivers, but little did they realize that this was a deliberate smokescreen to guarantee investors receive their profits.
This is not quantum physics but a calculated method to enrichment; an outright theft of people’s money. A clear pattern now emerges: The privileged investors will embrace a massive payout while the ones at the proletariat level would be stuffed with the leftovers, a phenomenon of massive financial doom that infects all the projects of Bharat Jagdeo.
Yours truly,
Leyland Chitlall Roopnaraine
