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Wednesday, September 02, 2015Shareholders agreement for Berbice Bridge must be made public – Clive ThomasContractual arrangements are outrageous, ruthless and unconscionable By Kiana WilburgPresidential Advisor on Sustainable Development, Dr. Clive Thomas, believes that the contractual agreement for the Berbice River Bridge Inc. which allows New GPC and Hand in Hand Trust to own 50 percent of the entity when their investment is less than five percent, is “outrageous, ruthless and unconscionable.”New GPC, a company owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, has close relations to former President Bharrat Jagdeo and, according to an article on chrisram.net, that company has two Directors on the Board.The structure of the company allows equity shareholders whose investment is less than five percent ($400 million) of the total funds of the company to exercise controlling interest over the company. Of the $400 million, the Ramroop Group owns 40 percent and the Hand-in-Hand Group owns 10 percent.Presidential Advisor on Sustainable Development, Dr. Clive ThomasThe contract also provides for the equity shareholders to receive 23 percent on their investments.Dr. Thomas said, “This contract agreement is clearly designed to make just a handful of people filthy rich for the rest of their lives at the expense of the poor. It is a despicable contract which must be changed. The contract agreement and the implications for our taxpayers can only be described as criminal and I will insist that the Shareholder Agreement be made public.”The Presidential Advisor added, “It is clear, also, that under the past regime there was a disease of greed which infected every project, every plan and almost every entity. We are seeing this behaviour on display from the company. Government has a right to reduce the tolls.“It is unconscionable to think that this entity wants to increase the tolls and suggest in any way that it wants the government to consider extending the concession agreement.”The coalition government, in the lead up to the May 11, 2015 elections, had accused the previous administration of hijacking the Berbice Bridge Company Inc. (BBCI), deliberately structuring operations in a manner that allowed investors and their close friends with disproportionately small investment to control the company.To ease the burden on users of the bridge, Finance Minister, Winston Jordan, pursued the reduction of the tolls in a phased manner. The first phase would see the toll reduction for cars, from $2,200 to $1,900. This was announced during the budget presentation. It was set for implementation on Tuesday. Jordan had also indicated a 10 percent reduction on other categories of vehicles.But the Finance Minister at a recent post Cabinet press briefing revealed that the implementation of the reduction seems to be in limbo at the moment. He disclosed that the prescribed toll reduction was in limbo because BBCI’s Directors decided to take that matter to its shareholders.Jordan believed that the Bridge Company was deliberately delaying the implementation of the toll reduction.The reduction is estimated to see the company collect annually about $120M less from commuters but being compensated by Government with an equivalent amount. For the remaining months of the year, the Government has allocated $36M.The company subsequently placed an advertisement in this newspaper, refuting the allegations by Jordan as well as providing the public with its take of the discussions conducted with the Finance Minister.But on Monday, Jordan expressed “grave concern” about the inaccuracies contained in a press release issued by the Berbice Bridge Company.He also noted that the Berbice Bridge Company is seeking to impose a further 55 percent increase in tolls on an “already suffering population.”Commenting on the BCCI statement, the Minister noted that “there is no toll reduction to the company.”He had said that the company will continue to receive the full amount of the existing toll; if there is a reduction the company would receive the difference from the Government. Therefore the Bridge Company would not lose a cent.Jordan also raised concerns about BCCI reporting on a statement he allegedly made at the meeting on August 12, last.BBCI had stated that Jordan “accepted that ‘the company would like further discussions to take place on the proposal and an extension in the concession period from 21 years to 40 years: or for the Government to give consideration to an application for an increase in toll made to the PPP/C Government on March 15, 2015.”But, the Minister said that contrary to that assertion, his record of the meeting indicates that he restated the intention of the Government to facilitate lower tolls for users of the Bridge to bring some relief to the people of Regions Five and Six.“I further indicated that the Company would not suffer any loss.”Minister Jordan said that he was prepared to enter into a series of discussions on matters of mutual interest, “beginning with the reductions announced in the Budget Speech.“It was with Mr. (Christopher) Ram, and not with me, that the company indicated that it would like discussions to take place on extending the concession period from twenty-one years to forty years, or for the government to consider its letter to the PPP/C as an application to this Government for a toll increase.”The Minister stated that he was given false hope by the “spirit in which both meetings of August 12 were conducted. It gave hope of an expeditious conclusion of this matter.”“Alas, there now appears to be other forces who want to use the Government as a compensatory mechanism for a faulty investment model of the Berbice Bridge, one that seeks to impose a further 55 percent increase in tolls on an already suffering population.Such an unreasonable charge will not be countenanced by our Government.”Jordan also noted that it is now approaching three weeks since his meeting with the officials of BBCI and the public is being inconvenienced.“I hope that the company will move swiftly to demonstrate its commitment to achieving the objective of reducing the burden on the people of Guyana caused by prohibitively high tolls.”Tuesday, September 01, 2015Private bridge owners want 55% toll hikeGovt. will not consider increase– Jordan “Alas, there now appears to be other forces who want to use the Government as a compensatory mechanism for a faulty investment model of the Berbice Bridge.” – Minister of Finance Winston Jordan New GPC’s owner,Dr. Ranjisinghi‘Bobby’ RamroopMinister of Finance, Winston Jordan, yesterday expressed “grave concern” about the inaccuracies contained in a press release issued by the Berbice Bridge Company Inc. (BBCI), on the tolls charged by the Company.He also noted that the Berbice Bridge Company, is seeking to impose a further 55% increase in tolls on an “already suffering population.”Commenting on the BCCI statement, the Minister noted that “there is no toll reduction to the Company.”He said that the company will continue to receive the full amount of the existing toll; if there is a reduction the company would receive the difference from the Government. Therefore the Bridge Company would not lose a cent.Jordan also raised concerns about BCCI reporting on a statement he allegedly made at the meeting on August 12, last.BBCI has stated that Jordan “accepted that ‘the company would like further discussions to take place on the proposal and an extension in the concession period from 21 years to 40 years: or for the Government to give consideration to an application for an increase in toll made to the PPP/C Government on March 15, 2015.”But, the Minister said that contrary to that assertion, his record of the meeting indicates that he restated the intention of the Government to facilitate lower tolls for users of the Bridge to bring some relief to the people of Regions Five and Six.“I further indicated that the Company would not suffer any loss.”Minister Jordan said that he was prepared to enter into a series of discussions on matters of mutual interest,Wholesale Jerseys, “beginning with the reductions announced in the Budget Speech.“It was with Mr. (Christopher) Ram, and not with me, that the Company indicated that it would like discussions to take place on extending the Concession period from twenty-one years to forty years, or for the Government to consider its letter to the PPP/C as an application to this Government for a toll increase.”The Minister stated yesterday that he was given false hope by the “spirit in which both meetings of August 12 were conducted. It gave hope of an expeditious conclusion of this matter.”“Alas, there now appears to be other forces who want to use the Government as a compensatory mechanism for a faulty investment model of the Berbice Bridge, one that seeks to impose a further 55% increase in tolls on an already suffering population.“Such an unreasonable charge will not be countenanced by our Government.”Jordan also noted that it is now approaching three weeks since his meeting with the officials of BBCI. He said that meanwhile, the public is being inconvenienced and “I hope that the Company will move swiftly to demonstrate its commitment to achieving the objective of reducing the burden on the people of Guyana caused by prohibitively high tolls.”It was recently revealed that the current contractual arrangements allow for two entities to control 50 percent of the company: The New GPC and Hand In Hand Trust Corporation.New GPC, a company owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, former President Bharrat Jagdeo’s best friend and, according to an article on chrisram.net some time ago, that company has two Directors on the Board.The structure of the company allows equity shareholders whose investment is less than five percent ($400 million) of the total funds of the company to exercise controlling interest over the company. Of the $400 million, the Ramroop Group owns 40 percent and the Hand-in-Hand Group owns 10 percent.The contract also provides for the equity shareholders to receive 23 percent on their investments. The coalition government, in the lead up to the May 11, 2015 elections, had accused the previous administration of hijacking the Berbice Bridge Company Inc. (BBCI), deliberately structuring operations in a manner that allowed investors and their close friends with disproportionately small investment to control the company.To ease the burden on users of the bridge, Finance Minister, Winston Jordan, pursued the reduction of the tolls in a phased manner. The first phase sees the toll reduction for cars, from $2,200 to $1,900. This was announced during the budget presentation. It was set for implementation today (September 1). Jordan had also indicated a 10 percent reduction on other categories of vehicles.But, the Finance Minister at a recent post Cabinet press briefing revealed that the implementation of the reduction seems to be in limbo at the moment.He disclosed that the prescribed toll reduction was in limbo because BBCI’s Directors decided to take that matter to its shareholders.The current Directors of the Company are said to be Keith Evelyn, Ravi Ramcharitar, Avalon Jagnandan, Gillian Burton, Egbert Carter, Paul Cheong, Cecil Kennard, and Maurice Solomon. Jagnandan and Ramcharitar are both Directors in New GPC.Government’s lead negotiator in the toll increase is Attorney-at-Law, Chris Ram, while for the BBCI, Ravi Dev, is representing New GPC on the Board.Monday August 31, 2015NEW GPC and Hand-In-Hand own 50% of Berbice Bridge– Contractual agreements allow providers of 5% of capital to control the bridge and receive 23% annual returnBy Kiana Wilburg The saga of the Berbice River Bridge Company Inc. continues to reveal even more interesting details as Kaieteur News understands from experts very close to the Bridge that the current contractual arrangements allow for two entities to control 50 percent of the company: The NEW GPC and Hand In Hand Trust Corporation.New GPC, a company owned by Dr. Ranjisinghi ‘Bobby’ Ramroop has close relations to former President Bharrat Jagdeo and, according to an article on chrisram.net some time ago, that company has two Directors on the Board.The structure of the company allows equity shareholders whose investment is less than five percent ($400 million) of the total funds of the company to exercise controlling interest over the company. Of the $400 million, the Ramroop Group owns 40 percent and the Hand-in-Hand Group owns 10 percent.The contract also provides for the equity shareholders to receive 23 percent on their investments. The coalition government, in the lead up to the May 11, 2015 elections, had accused the previous administration of hijacking the Berbice Bridge Company Inc. (BBCI), deliberately structuring operations in a manner that allowed investors and their close friends with disproportionately small investment to control the company.To ease the burden on users of the bridge, Finance Minister, Winston Jordan, pursued the reduction of the tolls in a phased manner. The first phase sees the toll reduction for cars, from $2,200 to $1,900. This was announced during the budget presentation. It was set for implementation on Tuesday, (September 1). Jordan had also indicated a 10 percent reduction on other categories of vehicles.But the Finance Minister at a recent post Cabinet press briefing revealed that the implementation of the reduction seems to be in limbo at the moment. He disclosed that the prescribed toll reduction was in limbo because BBCI’s Directors decided to take that matter to its shareholders.Jordan believed that the Bridge Company was deliberately delaying the implementation of the toll reduction.The reduction is estimated to see the Company collect annually about $120M-$140M less from commuters but with Government compensating them with an equivalent amount. For the remaining months of the year, the Government has allocated $36M.New GPC’s owner, Dr. Ranjisinghi ‘Bobby’ RamroopFormer PresidentBharrat JagdeoIn a full page advertisement published in yesterday’s edition of Kaieteur News, the company is denying that it is deliberately delaying the reductions. “This is not so. The BBCI is as anxious as all other Guyanese to provide the best service to the Berbice Bridge commuters at an affordable price.”BBCI pointed out that just as the government was forced to defer several of its campaign promises based on the need to comply with existing laws, so too are the Directors of the BCCI constrained by the Berbice Bridge Act and Regulations.The Bridge Company said that it signed a legally binding contract with the PPP/C Government called a “Concession Agreement”.The statement noted that at an initial August 12 meeting between the government and the Company, the Government proposed a schedule of subsidies to commuters based on the existing toll structure.BBCI said that it stressed during the meeting with Government that it would like further discussions to take place on the proposal and an extension in the concession period from 21 years to 40 years: or for the Government to give consideration to an application for an increase in toll made to the PPP/C Government on March 15, 2015. The government said that no agreement was reached with BBCI.“We cannot therefore understand why the Minister would suggest that ‘delaying tactics’ are being employed. Other discussions also took place concerning the timing of subsidy payments but the BBCI team made it clear that nothing could be agreed until the matter is discussed by its full board and stakeholders.New GPC director,Ravie RamcharitarDirector Keith EvelynThe company said that Government proceeded as if it was a done deal, simply to fulfill a campaign promise on the BBCI tolls. This was made without any consultations.BBCI also claimed that it lost $1.2B because it has not been granted an increase in tolls. It could face insolvency if the process is not done right, BCCI added.“Directors of BBCI have a fiduciary duty to act in the best interest of the company. Any agreement to a subsidy without honouring the toll adjustment formula set out in the Concession Agreement will result in the BBCI defaulting on its obligation to repay debt in 2015 and possible insolvency.”This year, over $500M in debt repayment to investors is required. Directors cannot change the agreements reached with the investors in the bridge as represented by the trustee for the debt and the shareholders for the equity. Such decision must involve an agreement with the trustee and the shareholders.”Any change in the Concession Agreement and the Toll Order which is made by the Government –the last one was made in 2009 by the Minister of Public Works–requires the approval of the Trustee and the Shareholders, BBCI claimed.The company said that it expects government to fully commit to honouring the legislation, concession agreement, and the rights enshrined in the various agreements related to the Berbice Bridge. “A subsidy divorced from honoring the BBCI Concession Agreement could very well result in bankruptcy for the BBCI.”The current Directors of the Company are said to be Keith Evelyn, Ravi Ramcharitar, Avalon Jagnandan, Gillian Burton, Egbert Carter, Paul Cheong, Cecil Kennard, and Maurice Solomon. Jagnandan and Ramcharitar are both Directors in New GPC.Government’s lead negotiator in the toll increase is Attorney-at-Law, Chris Ram, while for the BBCI, Ravi Dev, is representing New GPC on the Board.Ram, earlier this year, wrote that Government, inclusive of the NIS, owns 76 percent of the issued shares of the company. NICIL, Ram said, owns what is called a Special Share in the company and according to the Articles of Amendment of the company “no action can be taken by the Bridge Company, without the affirmative vote” of NICIL.The NIS has $950M in Preference Shares and is entitled to fixed dividends. The equity shareholders are Secure International Finance Company ($80 million); Demerara Contractors Limited ($40M); Hand in Hand Motor & Life Insurance Company ($40M), the Ramroop Group ($160 M) and the NIS ($80 M).Ram, who has written extensively on the Bridge, has lamented the fact that despite having some 70 percent of the issued shares as well as a Special Share, control of the company is exercised by less than a handful of entities.The lawyer has also written on various occasions noting the losses being made by the company due to its contractual arrangements.Finance Minister Jordan had lamented on subsequent investments into the bridge by NIS. In the National Assembly on Friday, he described the investments as being “reckless” and “criminal”. He said that between 2009 to now, NIS has lost $1.8B and in spite of this, made another insane and suspect investment into the Berbice Bridge of nearly $1B to which they are still to collect income on.Jordan said that NIS is at a point where it cannot give full benefits to its faithful contributors and believes that the Consolidated Fund at the end of the day may be asked to make good on this loss.Sunday, August 30, 2015Stalemate continues over New GPC, Hand-in-Hand controlled Berbice Bridge…Give us 20 years extension or increase the tolls– private investors tell new Govt.The current standoff between Government and the company that controls the US$40M Berbice River Bridge has taken a twist with the latter asking for its agreement to be extended another 20 years or for the administration to consider hiking the tolls.The toll reduction for cars, from $2,200 to $1,900, announced during the budget presentation by Finance Minister, Winston Jordan, was set for implementation on Tuesday, (September 1). It seems to be in limbo at the moment.Jordan had also indicated a 10 percent reduction on other categories of vehicles, in what he said was the first of a series of interventions.Toll charged by the Berbice Bridge Company Inc. (BBCI) has been a sore point for consecutive administrations of the People’s Progressive Party/Civic (PPP/C).The coalition Government, in the lead up to the May 11, 2015 elections, had accused the previous administration of hijacking the Berbice Bridge Company Inc., deliberately structuring operations in a manner that allowed investors and their close friends with the least investment to take control.New GPC, a company with close relations to former President Bharrat Jagdeo, has been allowed to nominate the directors, thus taking control of the company, although Government and the state-owned National Insurance Scheme (NIS) are the biggest investors.On Friday, Finance Minister Jordan disclosed that the prescribed toll reduction was in limbo because BBCI’s directors decided to take that matter to its shareholders.Jordan believed that the Bridge company was deliberately delaying the implementation of the toll reduction.The reduction is estimated to see the bridge lose about $120M-$140M annually with Government promising to provide a subsidy to meet the shortfall. For this year, Government has allocated $36M.In a full page advertisement published in today’s edition of Kaieteur News, the company is denying that it is deliberately delaying the reductions.“This is not so. The BBCI is as anxious as all other Guyanese to provide the best service to the Berbice Bridge commuters at an affordable price.”BBCI, pointed out that just as the government was forced to defer several of its campaign promises based on the need to comply with existing laws, so too are the Directors of the BCCI constrained by the Berbice Bridge Act and Regulations.The bridge company said that it signed a legally binding contract with the PPP/C called the “Concession Agreement”.The statement noted that at the initial August 12 meeting, Government proposed a schedule of subsidies to commuters based on the existing toll structure.BBCI said that it stressed during the meeting with Government that it would like further discussions to take place on the proposal and an extension in the concession period from 21 years to 40 years: or for the Government to give consideration to an application for an increase in toll made to the PPP/C Government on March 15, 2015.The company said that no agreement was reached with BBCI.“We cannot therefore understand why the Minister would suggest that “delaying tactics” are being employed. Other discussions also took place concerning the timing of subsidy payments but the BBCI team made it clear that nothing could be agreed until the matter is discussed by its full board and stakeholders.The company said that Government proceeded as if it was a done deal, simply to fulfill a campaign promise on the BBCI tolls. This was made without any consultations.BBCI also claimed that it lost $1.2B because it has not been granted an increase in tolls.The company said it could face insolvency if the process is not done right.The Berbice Bridge“Directors of BBCI, have a fiduciary duty to act in the best interest of the company. Any agreement to a subsidy without honouring the toll adjustment formula set out in the Concession Agreement will result in the BBCI defaulting on its obligation to repay debt in 2015 and possible insolvency.”This year, over $500M in debt repayment to investors is required. ”Directors cannot change the agreements reached with the investors in the bridge as represented by the trustee for the debt and the shareholders for the equity. Such decision must involve an agreement with the trustee and the shareholders.”Any change in the Concession Agreement and the Toll Order which is made by the Government –the last one was made in 2009 by the Minister of Public Works–requires the approval of the Trustee and the Shareholders, BBCI claimed.The company said that it expects government to fully commit to honouring the legislation, concession agreement, and the rights enshrined in the various agreements related to the Berbice Bridge. “A subsidy divorced from honoring the BBCI Concession Agreement could very well result in bankruptcy for the BBCI.”The current directors of the company are said to be Keith Evelyn, Ravi Ramcharitar, Avalon Jagnandan, Gillian Burton, Egbert Carter, Paul Cheong, Cecil Kennard, and Maurice Solomon.Jagnandan and Ramcharitar are both directors in New GPC.Government’s lead negotiator in the toll increase is attorney-at-law, Chris Ram, while for the BBCI, Ravi Dev, is representing New GPC on the board.Ram, earlier this year, wrote that Government, inclusive of the NIS, owns 76 percent of the issued shares of the company.NICIL, Ram said, owns what is called a Special Share in the company and according to the Articles of Amendment of the company “no action can be taken by the Bridge Company, without the affirmative vote” of NICIL.While NIS has $950M in shares, Secure International Finance Company reportedly has $80M; Demerara Contractors $40M; Hand in Hand Motor & Life Insurance Company $40M and Colonial Life Insurance Company with $80M shares.Oddly, the shares that were held by CLICO (Guyana) remain in the name despite the fact that CLICO is in the process of liquidation.Government reportedly was supposed to collect $104M annually in dividends from the Berbice Bridge but waived it after BBCI said it could not afford to pay because business was bad.In 2010 the company took in $1.1B in revenue.The Berbice River Bridge was designed by a European consortium, Bosch Rexroth B.V. and Mabey and Johnson.Click on the image to enlarge…November 13, 2014Explosive Ombudsman report…Jagdeo ordered dismissal of NBS boss…because he refused to lend US$10M for Berbice BridgeGopaul “telephoned me and said that as President Jagdeo did not get the $2B for the Berbice Bridge he – the President will “deal with me!” – Maurice ArjoonMaurice Arjoon, who was one of three New Building Society (NBS) Managers sacked in 2007, has made startlingCleared: Former NBS CEO, Maurice Arjoonclaims. NBS is the country’s largest mortgage finance entity.Arjoon said he ran into trouble after refusing to back a proposal to lend $2B to the Bridge committee in 2006 for the building of the Berbice River Bridge.The claims by former Director/Secretary and Chief Executive Officer (CEO), Maurice Arjoon, were contained in an explosive report by an independent public complaints body. The report was released earlier this month.The report would have come from a complaint filed by Arjoon back in January with the Ombudsman, Justice Winston Moore.Guyana would have been without an Ombudsman for a number of years.On June 1, 2007, Arjoon, Kent Vincent and Kissoon Baldeo were all charged with fraud over the withdrawal of some $69M from a savings account.NBS has repaid the account holder almost $74M.The fraud charges were dismissed but NBS had already sacked the Managers citing fraud, negligence and serious misconduct.The Ombudsman report cleared the three managers, and questioned how investigators recommended charges when there was clearly no evidence in the police file.Justice Moore noted in his findings that: “The standard required for conviction of a criminal offence is proof beyond aDPP, Shalimar Ali-Hackreasonable doubt for every element of the offence – the acts as well as the mental ingredients.“Without intending any disrespect to anyone, I would state that carelessness, most species of negligence, foolhardiness or even stupidity are not the standard of proof of guilt for a criminal offence.“I do not hereby state any finding or conclusion that anyone at the NBS should be blamed for any of these.”Assisting with the Ombudsman’s independent investigation of the complaint was Henry Chester, Deputy Commissioner of Police (retired).According to the report, Arjoon in his complaint, said that at the time of the “trumped up charges”, he was six months away from retirement, which would have entitled him to receive a lucrative monthly pension and substantial benefits.Trumped-up ChargesArjoon believed that an independent investigation would have revealed that persons from the Central Islamic Organisation of Guyana (CIOG), including the Director of Public Prosecution, Shalimar Ali-Hack, did not want to take action against the real perpetrators of the fraud.The reasons were simple. It was punishment for “certain decisions and/or recommendations I made in the interest of the NBS but were deemed unfavourable to the President of Guyana and certain Directors of the NBS.”The President back in 2006-2007 was Bharrat Jagdeo.Government had been seeking monies to finance the construction of a bridge across the Berbice River.According to Arjoon, while NBS is supposed to be a private company, it is run by persons aligned to the Government andFormer President Bharrat JagdeoCIOG.He said that in 2006, at an NBS Board meeting, three Directors voted for an investment of $2B in the Berbice Bridge, while three voted for zero investment.“I recommended that the Directors be guided by the Financial Institutions Act in determining the quantum to invest in the Berbice Bridge, to which they all agreed without any objection, thus $350M was invested (then).”The former CEO said that less than two hours later, he received a call from Dr. Nanda Gopaul, the then Permanent Secretary of the Office of the President, who was part of the Board.Gopaul is the current Minister of Labour.Arjoon claimed that Gopaul “telephoned me and said that as President Jagdeo did not get the $2B for the Berbice Bridge he – the President will “deal with me!”According to the Ombudsman’s report, during his investigation, Justice Moore wrote Head of the Presidential Secretariat, Dr. Roger Luncheon, on the allegations against Gopaul and whether Dr. Ashni Singh, the Finance Minister, did order the Bank of Guyana to investigate the NBS, as a result of the allegation of fraud.He also asked whether the report of the investigation was deliberately suppressed to the detriment of anyone.“Dr. Nanda Gopaul replied through the Head of the Presidential Secretariat denying communicating any threat to Mr. Arjoon. In fact, he claimed that he and Mr. Arjoon had very cordial relations up to the time Mr. Arjoon was dismissed by the NBS.To date no response has been received from Dr. Ashni Singh.”Fire HimArjoon also had other claims in June 2007, “certain Directors of NBS subsequently confided that the President (Jagdeo) called them to a meeting at Office of the President where the Chairman and Vice Chairman lied that the police said they had evidence against me and the two Managers.“The President asked of the Board ‘Why do you have them there then?’” This is the main reason they agreed to fire us (sic).”The former CEO said that when written to in January 2008 by his wife, with information attached that the DPP wrongfully charged him and the two Managers, the former President “quickly confirmed the DPP.” Then, amendments to the NBS Act were rushed through parliament and hastily assented to by the President, to make it impossible for NBS members to call special meetings in the event of wrongdoings.”Arjoon also claimed that in November 2010 – before the criminal charges were dismissed –Jagdeo offered to grant the full pension and benefits in return for dropping the civil lawsuit.“Given that I was told the civil matter would be drawn out for years, I decided to accept. “The President arranged for me to meet Dr. Nanda Gopaul at Office of the President who admitted that I did no wrong. He agreed for legal fees to be paid by NBS and that I can get full pension and benefits.”However, Arjoon said that surprisingly, NBS lawyer, Ashton Chase, sent a letter“advising approximately half of my monthly pension and lump sum due, stating this was agreed to after discussion at the highest level.” Jagdeo was the person at the highest level.Arjoon refused the deal.The Ombudsman said that he was of the opinion that Arjoon, the two Managers and Amrita Prashad, another NBS staffer who was charged, had “all suffered injustice, notwithstanding the fact that they were all discharged by Magistrates at the various Preliminary Inquiries.”March 29, 2015Berbice Bridge sinking NISBy Christopher RamRecently the National Insurance Scheme made news on two scores: the first that it will not receive anyChristopher Ramdividends on its investment in preference shares in the Berbice Bridge Company Inc., and the second that there are more than 1,500,wholesale jerseys china,000 contributions which have not been credited to the workers’ accounts.I was disappointed rather than shocked when I saw Ms. Doreen Nelson, General Manager of the NIS, sitting passively next to her Chairman Dr. Roger Luncheon announcing that persons were not coming forward to help clear up the contribution mess in the NIS.Ms. Nelson knows that his statement contradicts the experiences of many contributors who try, sometimes for years, to persuade the NIS that the contributions recorded in its records are less, sometimes significantly so, than the actual contributions they have made over their decades of working life and contributions.A client has been engaged in frustrating correspondence for more than four years persuading the management of the Scheme that his entitlement is a pension rather than an Old Age grant. I myself have had fifteen telephone calls to Ms. Nelson over the matter and all I hear is that the NIS is looking into it. Frustrated with the delay, the poor fellow travelled to Guyana from the USA over the Christmas holidays only to be told that it was Christmas time and the matter would have to wait until the holidays were over!I reported this to the General Manager several weeks ago. She said that was not good.Buying a pig in a pokeContrast this with the speed with which the NIS doled out $950 million to the National Industrial andExecutive Director of NICIL, Winston BrassingtonCommercial Investments Limited (NICIL) to pay for non-performing preference shares in the Berbice Bridge Company Inc.Here is that story. In December 2013, the PSC, which apparently shares the same PR with NICIL and the Berbice Bridge Company Inc., broke the news that the NIS had acquired from NICIL preference shares with a face value of $950 million in BBCI. What a difference a year made.One year later, in fact on December 29, 2014, BBCI wrote the General Manager of the NIS informing her that the company would not be paying the NIS any dividends on its newly acquired investment! According to BBCI’s CEO, the company did not record a profit in 2014.Of some interest is that while the Bridge Company claims that it has not made profits, it has failed to file its 2012 and 2013 annual returns as required by law. In fact it was only after I called on the Registrar of Companies to enforce the law with respect to annual returns that a demand was made on the company. As far as I am aware the company is yet to comply.But back to those preference shares. Unfortunately for the workers of the country whose pension is tied up in the NIS, this was another hustle by NICIL and Winston Brassington to raise desperately needed funds for the company.If you have to wonder why a holding company should be desperate for cash, it means that you have not heard about the Kingston Hotel. To any Guyanese who has been observing howBerbice BridgeWinston Brassington operates, however, it should be no surprise. But even Brassington’s well-known indiscretions do not make the announcement of no dividends to the NIS less shocking in its seriousness, crass in its brazenness and gross in its shamelessness, or detrimental to those who have contributed to the Scheme.Willing co-conspiratorsIn fairness to Brassington, he could not succeed without some willing co-conspirators. He succeeded because of the spinelessness of the members of the Investment Committee of the NIS and the conflicting roles of Dr Roger Luncheon who happens to be a director of NICIL and Chairman of the NIS Board at the same time. In relation to the preference shares, he was both buyer and seller!No doubt one will hear that the Board of the NIS has an Investment Committee and that the Scheme’s Investment Strategy has been approved by the Minister of Finance Dr. Ashni Singh who, coincidentally, has statutory responsibility for the Scheme and is the Chairman of NICIL!But like the money from GGMC to the Central Housing and Planning Authority, reality, decency, propriety and legality were the least of the factors in the imposition of the “acquisition” by the NIS of shares that for several years had earned its owner NICIL nothing by way of dividends.The press has counted and recounted the story of the Bridge Company’s creative accounting and financing perpetrated by Brassington, first as a promoter and later as Secretary of the Company. In his capacity as company secretary, Brassington personally engaged in incomplete and inaccurate statutory reporting that concealed the extent of government funds invested in the company.And when the glowing financial projections for the company turned out to be no more than cock-eyed accounting, he as an officer of NICIL and its directors, engaged in the illegal waiver of hundreds of millions of dollars of dividends due by the Bridge Company to NICIL, directly or through its subsidiary.ConclusionThe tide is going out on the Bridge Company and it is leaving the NIS adrift. Over the years I have offered both warnings and advice to the Bridge Company, most recently in September 2013. Here are two examples:1. “With its high borrowings, liquidity dangers for the Bridge Company are never too far from the surface. This concern is not helped by the improperly prepared financial statements such as the word “maturity” in relation to the repayment of more than $5,575 million in corporate bonds.”2. And drawing on information contained in BBCI’s 2011 financial statements I calculated that “in 2014, the company will have to find some $610 million to repay Tranche 1 and another $100 million or so to repay other loans which will become repayable. If the company is unable to meet those obligations, it would find itself facing what is called ‘cash-flow’ insolvency.”I suspect that the unwillingness by the directors to file the annual reports of the company for more than two years may have something to do with the poor state of their finances. April 21, 2015Financially-strapped Berbice Bridge waives tolls for PPP/C Albion rallyAs if it is not already facing enough financial problems, management of the troubled Berbice Bridge on Sunday waived tolls for scores of vehicles heading to an Albion rally of the ruling People’s Progressive Party/Civic (PPP/C).CEO, Omadat SamarooMotorists travelling to Berbice were reportedly asked by staff if they were heading to the rally which reportedly drew an enormous crowd. The ones that answered in the affirmative were waved through while others were reportedly charged the normal tolls.Yesterday, Kaieteur News made contact with the Berbice Bridge Company Incorporated and an official confirmed that vehicles were indeed allowed through.However, he would not discuss where the orders to waive tolls came from. Attempts to speak with Omadat Samaroo, Chief Executive Officer, proved futile yesterday.Kaieteur News was also unable to determine how much the Berbice Bridge would have lost in revenues because of the waiving of those tolls.The Opposition has been complaining about the use of state assets by the ruling party to campaign for the upcoming May 11 General and Regional Elections, which is being described by observers as one of the toughest for the ruling which took power in 1992.The Opposition A Partnership For National Unity plus Alliance For Change coalition (APNU+AFC), were not extended the same courtesy by the Berbice bridge during their recent rallies.The Berbice Bridge itself has been facing problems. It had reportedly writtenSunday’s rally at Albion organized by the PPP/C saw one of the largest procession in recent times.the National Insurance Scheme (NIS), a shareholder, indicating that it is unable to pay dividends for last year. Also said to have shares in the bridge are the Hand-in-Hand Insurance Company, New Building Society, Demerara Distillers Limited, Beharry Group of Companies, Queens Atlantic Investment Inv (QAII), owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, best friend of former President Bharrat Jagdeo.NIS, although sitting on billions of reserve, is facing long-term problems if it does not raise the number of contributions from employers and their workers. Currently, its expenses outstrip revenues.The investments in the US$40M-plus Berbice Bridge had been argued as a wonderful opportunity for NIS to earn some more revenues, its managers and Government said.It would be hard for the Berbice Bridge and its management to explain the waiving of the tolls especially when it could not pay NIS its dividends on the $950M investments made by the scheme.In a letter to the NIS, the bridge said last year that it did not record a profit in 2014.Chartered accountant/lawyer, Christopher Ram, had complained that while the Bridge Company claims that it had not made profits, it has failed to file its 2012 and 2013 annual returns as required by law.Ram wrote on his online blog, chrisram.net earlier this year that based on calculations, it would appear that the tide is going out on the Bridge Company and it is leaving the NIS adrift.“With its high borrowings, liquidity dangers for the Bridge Company are never too far from the surface. This concern is not helped by the improperly prepared financial statements such as the word “maturity” in relation to the repayment of more than $5,575 million in corporate bonds.”He believed that the “unwillingness” by directors to file the annual reports of the company for more than two years may have something to do with the poor state of their finances.April 26, 2015Berbice Bridge waived toll for major ralliesManagement of the Berbice Bridge Company Incorporated (BBCI) said that it waived tolls for both of the major political parties during rallies kept in the Ancient County.CEO of Berbice Bridge, Omadat SamarooAccording to Chief Executive Officer of BBCI, Omadat Samaroo, both the ruling People’s Progress Party/Civic (PPP/C) and A Partnership for National Unity plus Alliance For Change (APNU+AFC) had written the company asking for waivers for the rallies.“This was approved by BBCI and the two major political parties were issued with almost equal amounts of toll waivers,” Samaroo said in his statement.“The Berbice Bridge Company Incorporated sees this gesture as a continuation of its corporate social responsibility to ensure that Berbicians are not denied the opportunity of hearing the programmmes that are likely to be of greater benefit to them and the country.”BBCI said it not only plays the role of collecting tolls and facilitating vehicles crossing the bridge and vessels transiting through the retractor opening and under the high span but also discharges its corporate social responsibilities.“More importantly, BBCI plays an integral part in the development of the nearby communities through its support to education, sports, supported national events and many charitable and non – charitable organizations in Regions Five and Six.”Over the last weekend, motorists travelling to Berbice were reportedly asked by staff if they were heading to the rally which reportedly drew an enormous crowd. The ones that answered in the affirmative were waved through while others were reportedly charged the normal toll.However, there were no details of where the orders to waive tolls came from.The Berbice Bridge itself has been facing problems. It had reportedly written to the National Insurance Scheme (NIS), a shareholder, indicating that it was unable to pay dividends for last year.Also said to have shares in the bridge are the Hand-in-Hand Insurance Company, New Building Society, Demerara Distillers Limited,cheap nfl jerseys china, Beharry Group of Companies, Queens Atlantic Investment Inv (QAII), owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, best friend of former President Bharrat Jagdeo.NIS, although sitting on billions of dollars in reserve, is facing long-term problems if it does not raise the number of contributions from employers and their workers. Currently, its expenses outstrip revenues.In a letter to the NIS, the bridge said that last year that it did not record a profit in 2014.April 26, 2015Govt. and Berbice Bridge Co. conspire to conceal deep financial problems – RamThere seems to be mischief afoot and a conspiracy involving Azeena Baksh, Registrar of Companies;Accountant, Christopher Ramthe Berbice Bridge Company Inc. (BBCI); and Dr. Ashni Singh, Minister of Finance to conceal information from the public about the company.According to accountant, Christopher Ram, writing on his online blog, chrisram.net, one year after the National Insurance Scheme (NIS) had invested nearly $1B in preference shares in BBCI, the company wrote the scheme telling General Manager, Doreen Nelson, that it would not be receiving any dividends for 2014 because “the company had not made any profits”.“One of the regulatory controls of companies is disclosure to the public, mainly through an annual return. The problem is that BBCI has not filed any returns with the Registry since 2011 and has resisted every attempt to have it comply.“The reason has become clearer over the past month with the Minister of Finance giving the company cover not to file for some time yet, even though he has no such power under the law.”Ram insisted that even if the Minister had such power, the company had not met the conditions set out in the Companies Act for any extension of filing date.“The law requires that an AGM (Annual General Meeting) be held in each year and that no more than 15 months may elapse between two AGMs. It also requires that within 42 days of the AGM, the company must file with the Registrar, its annual return together with its audited financial statements, the report of the auditors, andAzeena Baksh, Registrar of Companiesthe report of the directors.”He said that The Act also requires that the accounts to be laid at the AGM must be dated no more than six months before the meeting.“That means that the AGM of a company with a yearend date of December 31 must be held no later than June 30 of the following year. The Minister with responsibility for the administration of the Companies Act, in this case the Minister of Legal Affairs, may extend the period of fifteen months, or permit a company to hold its AGM in a calendar year other than the one in which the meeting should be held.”BreachesHe said that there are a number of catches that expose the Registrar, the Minister of Finance and the directors of the BBCI in the recent “extension”.“First, any application must be made before the period or year has elapsed; requires the payment of a prescribed fee; and so far as the date of the accounts is concerned, the directors of the company have to make an application to the Registrar for any extension of the six-month period. My perusal of BBCI’s public records at the Commercial Registry does not disclose any evidence that any of these requirements was met.”Ram said that he became particularly interested in the returns and audited accounts when he learnt from the Private Sector Commission that the NIS had bought $950 million worth of preference shares in BBCI from NICIL which was running out of cash to finance the construction of the Marriott.Cash-strapped: Berbice River Bridge“In early March, having checked the public records of BBCI and confirmed that the company was still delinquent with its filing, I spoke with and wrote the Registrar asking that she carry out her duties and demand the outstanding returns and accounts.”The accountant said that to her credit, Baksh wrote the company on March 17, last, making a demand for the years 2012-2014 and authorised that he be provided with a copy of the circular Notice of Default.He said that instead of complying with the Default Notice, however, the company responded in a letter marked “Private and Confidential” that the Minister of Finance had given the company up to June 15 to hold any of the outstanding Annual General Meetings.“For her part, instead of responding to the company to let them know that she could not accept the letter since the Minister of Finance has no such authority under the Act and that in any case, her approval in respect of the date of the financial statements had not been sought, Ms. Baksh refused to place the letter in file which would make it accessible to the public.”Strange ReasonsRam said that the “strange reason” the Registrar gave me was that the letter was marked “Private and Confidential”. It would create a dangerous precedent if all a company has to do to avoid its information being placed in the public domain is to head it “Private and Confidential”.“I am convinced that this saga is not a routine regulatory matter and that the so-called approval by Dr. Ashni Singh has as its improper motive keeping financial information on the Bridge Company away from the public. It should not escape notice that the Bridge Company wrote the NIS stating that there was no profit in 2014 even before the year had ended.”The accountant said that ever since its early years when NICIL was its financial regulator and Winston Brassington its company secretary, BBCI had been making defective annual returns and presenting improperly prepared accounts, matters which he has raised on numerous occasions in the past.“Eventually, time catches up on creative accounting which now appears to have happened. The letter by the company to the NIS stating that it was not in a position to pay dividends on the preference shares signals a much deeper problem, one of cash insolvency.”Ram criticized the Government for instead of enquiring into the matter which can potentially get worse, much worse, “it is conspiring with the company to conceal information and break the law with the Registrar whose appointment has not been without questions, willing to play along.”The bridge was commissioned in December 2008 with a mixture of private and public funds.Disclosures that the NIS investment was not seeing any returns has rankled the Opposition.May 04, 2015Ram to take NICIL, NIS to court over BBCI sharesAttorney at Law, Christopher RamAttorney-at-Law, Christopher Ram has signaled his intention to move to the courts over the $950M worth of preferential shares in the Berbice Bridge Company Inc (BBCI) that was dumped by the National Industrial and Commercial Investments Limited (NICIL) over to the National Insurance Scheme (NIS).Initially, Ram had chosen to tread along a different route and had written to Chairman of the NIS Board, Dr. Roger Luncheon, who is also a NICIL Director, seeking information on the transfer of shares.He did so as he expressed fear of “irreparable financial damage,” to NIS. Ram on behalf of three pensioners, on April 22, wrote to Dr. Luncheon requesting detailed information on almost $1B in preference shares in BBCI for which NIS is receiving no dividends.When Ram wrote Dr. Luncheon, he had requested a response within seven days which would have ended on April 29. However, since Dr. Luncheon refused to respond, the lawyer decided to move straight to the courts.He made this known during a telephone interview yesterday.Ram, who is also a Chartered Accountant, said that he was seeking relevant information in the interest of his clients, the pensioners.NIS acquired preference shares in BBCI at a face value of $950M since 2013 but never received any dividends because the company claimed that it made no profits. NIS had bought those shares from NICIL.Ram said that his clients are concerned about the decision to make investments since Dr. Luncheon would have been aware that NICIL, the previous owner of the shares had to forego the dividends. His clients are also concerned that no independent valuation was done before a decision was taken on acquisition of the shares.Also, Ram’s clients are concerned that as Chairman of NIS board, Dr. Luncheon appears to have been in a position of conflict of interest since he is also a Director of NICIL, the seller of the shares.Ram wrote Dr. Luncheon requesting the date of acquisition, the price paid for the shares and whether it is cum dividends or ex dividends.He also wanted a copy of the valuation report based upon which the decision was made to buy shares and evidence that the Directors,Jerseys NFL Wholesale, in making the decision, took account of the potential or actual loss of approximately $5.5B which the scheme incurred but is still on its books in relation to the investment in CLICO.The lawyer also sought extracts of the minutes from both the NIS and NICIL confirming that Dr. Luncheon excluded himself from participation in the relevant meetings of the two companies on the issue.Ram also indicated that another client has joined the other three pensioners. While he did not reveal the name, the lawyer said that his new client is a Trade Union.NIS remains in deep trouble following its investment in two companies that proved to be financially disastrous.NIS invested an accumulated $6.5B in the Colonial Life Insurance Company (CLICO) and the BBCI ($5.5B in CLICO and the remainder in BBCI).Experts have said that the absence of proper management on government’s part is what landed NIS in its current financial dilemma.The negative effects of Guyana’s handling of the collapse of the CLICO and its subsequent impact on the NIS are continuing to be felt some six years later.With CLICO Bahamas in winding-up proceedings, it is still unclear whether Guyana will ever get back that money. Government has remained largely silent on this investment with criticism still lingering over the manner in which the money was invested in the first place.But the same Party that has been in government while NIS made these two bad investments has failed to outline a turnaround plan.The incumbent People’s Progressive Party/Civic (PPP/C) released its Manifesto with no action plan on how it is going to return NIS to financial stability if re-elected.When asked at PPP’s last press conference why nothing is in its Manifesto with regards to how government will revive NIS, PPP/C General Secretary, Clement Rohee gave all assurance that “something has to be in there (the manifesto) about NIS, I am sure.” However, checks and double checks proved otherwise.In an invited comment last week, Ram told Kaieteur News that he is not surprised that PPP failed to make such provisions in the manifesto.He said that he is convinced that the incumbent has “no clue” what to do. “NIS was already in a bad situation after CLICO then they (government) went and made it worse with the investment in the Berbice Bridge.”Ram said that it seems as if the government just prefers to ignore the dilemma of the Scheme, “but they will not be allowed to ignore it, they will not be allowed to do so at all.”September 05, 2015Tolls increase stalemate… Govt. introducing passengers’ boats to break deadlock—Berbice Bridge now claims imminent insolvencyGovernment is moving to introduce water taxis amidst an ongoing row with the Berbice Bridge Company Inc. (BBCI).But the company is insisting that it has racked up accumulated losses of $1.5B up to the end of last year and could face insolvency unless it can restructure its financing.Speaking on the standoff, yesterday, during Government’s weekly press briefings, Minister of State, Joseph Harmon, said that the decision to place the covered passenger speedboats was taken by the Cabinet of Ministers’ earlier this week.Minister of Public Infrastructure, David Patterson, reportedly submitted a proposal for the passengers speedboats to the Cabinet. The water taxis will be used to transport mainly students and senior citizens.Government, based on assessments of how well the boats are working, will then decide on the next steps.The move by Government would signal clear intent that there is no backing down by the administration, with Harmon also admitting yesterday that the agreement that BBCI has with the Government of Guyana is also being reviewed.The new Government, while on the campaign trail in the lead-up of the May 11 General and Regional Elections, which it won, had vowed to reduce the tolls.On August 10, Minister of Finance, Winston Jordan, announced in the National Budget that tolls for cars will be reduced from $2,200 to $1,900. For other categories of vehicles, the decrease will be 10 percent.However, according to Government, BBCI has been using delaying tactics.In the first instance, Directors of the US$40M bridge as the September 1, deadline for the tolls reduction implementation approached, said it wanted its shareholders to have the final say.The bridge company then insisted that it wanted a toll increase or an extension from the 21 years it had to manage the facility, to 40 years. The toll increase would be subsidized by Government.Harmon said yesterday that Minister of Finance, Winston Jordan, has been mandated to continue engaging the Directors of the bridge company on the toll reduction.“We are of the firm belief that very soon the bridge company… whose directors referred the matter to the shareholders…that they will see the light and move to have the tolls reduced.”The Government spokesman made it clear that it is the administration’s duty to provide the necessary infrastructure and regulatory framework.He explained that initially the “two launches” similar to the covered ones operating between Vreed-en-Hoop and Georgetown, will be put into operations. The vessels will not belong to the state.A special committee that would include representatives from the Ministry of Public Infrastructure, Ministry of Education, Ministry of Social Protection and Ministry of Public Security is expected to travel to Berbice over this weekend to fine tune the details, including locations.Harmon also disclosed that there was a loophole in the agreement between the Government and the bridge company, which while blocking vessels from transporting vehicles across the Berbice River, does not say anything about passengers.Over a week ago, Minister Jordan had also made it clear that the Berbice River does not belong to BBCI.The BBCI situation has been angering the new administration especially after it was disclosed that private businesses were allowed to invest five percent into the construction of the bridge which was opened in December 2008 but managed to gain ownership control of almost 50 percent of the equity.There was disbelief when it was learnt that New GPC and Queens Atlantic Inc., two companies owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, a close friend of former President Bharrat Jagdeo, were able to install two Directors on the Board of Directors while Government of Guyana had little say in the affairs of BBCI.BBCI claimed it has not paid any dividends to any of its ordinary shareholders since its 2008 opening. The ordinary shareholders are Secure International Finance Company Limited, National Insurance Scheme (NIS), New GPC Inc., Queens Atlantic Investment Incorporated (QAII); Hand-in-Hand Mutual Fire Insurance Co Limited and Demerara Contractors & Engineering Limited.BBCI did not immediately disclose what dividends it paid to the investors who plugged cash in the construction. These included NIS; Demerara Bank; New Building Society, Bank of Nova Scotia; Citizens Bank; Republic Bank; Guyana Bank For Trade and Industry; Hand-in-Hand Trust Corporation; Trust Company (Guyana); Hand-in-Hand Mutual Life Assurance; North American Life Insurance; North American Fire Insurance; Guyana Geology and Mines Commission; Guyana Power and Light Inc; Guyana Sugar and Trade Enterprise-Pension; Hand-in-Hand Trust Pension’ GAWU-Pension; Demerara Distillers Limited; New GPC Inc; T. Geddes Grant Guyana and New and Massy Pension Scheme.NIS also has preferred shares.September 06, 2015Berbice Bridge toll is a hindrance to development – President David Granger– “We as a coalition are convinced that it could be lowered”By: Kiana Wilburg President David GrangerPresident David Granger is of the firm belief that the high tariffs of the Berbice River Bridge are a hindrance to development. He said that the coalition administration is convinced beyond the shadow of a doubt that it could be lowered.In a recent interview with this newspaper, the Head of State reminded that even when the A Partnership for National Unity and the Alliance For Change (APNU+AFC) were in opposition, both parties were always concerned about the high tolls which the residents of Berbice had to pay.Granger said that for the government, it was not a “commercial question but a human question” as it relates to the lowering to the tolls.The President said, “I have been confronted by students in West Coast Berbice, who had to travel to Berbice High School. People are paying $5000 a week for transportation costs largely because the previous government not only agreed to a high rate for the use of the bridge but also removed the ferry service that was cheaper.”The Head of State added, “We were concerned initially because of the impact that the rates had on the poor.”Asked for his take on the contractual arrangements of the bridge which were described by some members of his camp to be “ruthless and unconscionable,” the President said, “I would like to wait until the talks between the Finance Minister, Winston Jordan and the company are concluded. I don’t want to jeopardize those talks. People are already throwing statements in the air and whole page ads in the newspapers and I don’t want to aggravate that dialogue. Let us wait to see the outcome of the talks. But we as a coalition are still convinced that the rates could be lowered.”Referring to one of the basic principles of Economics, the President said that when a product has a very high price, it is highly unlikely that the multitude would go after it. He said that the flipside of this is that if the cost is low, it is more than likely that the most persons would be willing to pay for it.Against this background, he insists that more persons would use the Berbice Bridge if the cost was reduced. He said that it would even lead to the profits of the company being maximized.The Head of the State added, “In a different situation, it cost $5000 for one person to go from Aishalton to Lethem to get his or her pension for example. As a result of this high price, many can’t afford to go given what the pensioner was entitled to, which was $13,000. Many of them had to end up giving a letter of authorization for someone to get it for them. So things like high tariffs hinder commerce. If more people could travel freely between the two areas then they would go and shop for other things in Lethem and not just to pick up their pension.”The President said that with the use of that example, it underscores how high tariffs hinder development and said that the high Berbice Bridge toll is a prime example of this.While government is moving to introduce water taxis amidst an ongoing row with the Berbice Bridge Company Inc, the company is insisting that it has racked up accumulated losses of $1.5B up to the end of last year and could face insolvency unless it can restructure its financing.Minister of State, Joseph Harmon, at his most recent press briefing said that the decision to place the covered passenger speedboats was taken by the Cabinet of Ministers’ earlier this week.Minister of Public Infrastructure, David Patterson, reportedly submitted a proposal for the passengers speedboats to the Cabinet. The water taxis will be used to transport mainly students and senior citizens.Government, based on assessments of how well the boats are working, will then decide on the next steps.The move by Government would signal clear intent that there is no backing down by the administration, with Harmon also admitting that the agreement that BBCI has with the Government of Guyana is also being reviewed.The new Government, while on the campaign trail in the lead-up of the May 11 General and Regional Elections, which it won, had vowed to reduce the tolls.On August 10, Jordan announced in the National Budget that tolls for cars will be reduced from $2,200 to $1,900. For other categories of vehicles, the decrease will be 10 percent.The toll increase would be subsidized by Government.However, according to Government, BBCI has been using delaying tactics.In the first instance, Directors of the US$40M bridge as the September 1, deadline for the tolls reduction implementation approached, said it wanted its shareholders to have the final say.The bridge company then insisted that it wanted a toll increase or an extension from the 21 years it had to manage the facility, to 40 years. Harmon recently stated that Minister of Finance, Winston Jordan, has been mandated to continue engaging the Directors of the Bridge Company on the toll reduction.“We are of the firm belief that very soon the Bridge Company… whose Directors referred the matter to the shareholders…that they will see the light and move to have the tolls reduced,” Harmon said.The Government spokesman made it clear that it is the administration’s duty to provide the necessary infrastructure and regulatory framework.He explained that initially the “two launches” similar to the covered ones operating between Vreed-en-Hoop and Georgetown, will be put into operation. The vessels will not belong to the State.A special committee that would include representatives from the Ministry of Public Infrastructure, Ministry of Education, Ministry of Social Protection and Ministry of Public Security is expected to travel to Berbice over this weekend to fine tune the details, including locations.Harmon also disclosed that there was a loophole in the agreement between the Government and the bridge company, which while blocking vessels from transporting vehicles across the Berbice River, does not say anything about passengers.Over a week ago, Minister Jordan had also made it clear that the Berbice River does not belong to BBCI.The BBCI situation has even angered the new administration, especially after it was disclosed that private businesses were allowed to invest five percent into the construction of the bridge, which was opened in December 2008 but managed to gain ownership control of almost 50 percent of the equity. This subsequently led to calls for the Shareholders Agreement to be made public.There was disbelief when it was learnt that New GPC and Queens Atlantic Inc., two companies owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, a close friend of former President Bharrat Jagdeo, were able to install two Directors on the Board of Directors while the Government of Guyana had little say in the affairs of BBCI.September 08, 2015Govt. will not enrich Berbice Bridge associates, says Patterson…as option of nationalizing bridge ruled out As the stalemate between the government and the Berbice Bridge Company continues over the reduction of tolls, Minister of Public Infrastructure, David Patterson, yesterday dismissed the notion of nationalising the entity. The government is unprepared to enrich persons associated with the company, he said.The price tag that will be attached to taking over controlling interest of the bridge would be far above that which Government can currently afford, explained Patterson as he addressed media operatives during a conference at his Wight’s Lane, Kingston office yesterday.Patterson said that the government will be honouring the contract entered in with the company but the reduction in the toll, however, remains high priority for the government.The relatively new Government, while it was in Opposition, tabled a motion seeking to have the tolls reduced but it had not materialized despite their majority in the tenth Parliament. Later, on the campaign trail, in the lead-up to the May 11 General and Regional Elections, which it won, it had vowed to reduce the tolls.On August 10, Jordan announced in the National Budget that tolls for cars will be reduced from $2,200 to $1,900. For other categories of vehicles, the decrease will be 10 percent, by way of government subsidy.But the company did not budge. As the September 1 (the date for implementation) approached, Directors of the US$40M bridge said that the government had not consulted with them and it wanted its shareholders to have the final say.It then insisted on a toll increase or an extension from the 21 years it had to manage the facility, to 40 years. The company was insisting that it racked up accumulated losses of $1.5B up to the end of last year and could face insolvency unless it can restructure its financing.The government was arguing, however, that with the subsidy the bridge would still receive its money,nand the people who traverse the bridge will be relieved.As the row continued, the Public Infrastructure Minister submitted a proposal for the passengers speedboats to the Cabinet and it was approved. The water taxis will be used to transport mainly students and senior citizens.Yesterday, posed with the question of nationalizing the bridge Patterson said “We are not into enriching any of the existing persons there with the limited resources we have.” He dispelled arguments that the sums that would be invested in subsidy over the years could be more beneficial than a one-time investment in paying off investors.The Minister said there is a guarantee of 23 per cent rate of return annually in the bridge contract. “Anybody you go to buy from will invoke that saying they have 21 years…that’s how they entered into the deal so that would be tagged on as well,” said Patterson.“The end figure will be much greater than what was invested.” atterson said that the proposal laid in Parliament during the Budget Debates was made for 2015. The Minister of Finance has made clear that it will be a progressive reduction, with users seeing a greater reduction in the years to come.The government’s intent, according to Patterson, is to have the toll at an amount “fair and accommodating to the general public.” He said it is the first phase that has run into a speed bump.Patterson emphasised the government’s commitment to alleviating the burden from the Berbice people, but “(the bridge company) would like all its issues to be discussed and dissolved in its favour, prior to accepting the $300.”The government has said that it does not see any reason to delay the implementation.“They are speaking about extending the concessionary period and these are all things which can be discussed, but in the interim we have a commitment we made to the people. We appropriated sums for it and we are saying simply while this is going on, let us see. Unfortunately, the bridge company does not see it that way,” Patterson noted.At present, the Maritime Administration Department (MARAD) as well as the Transport and Harbours Department (T&HD) are currently spearheading the operation.Patterson revealed “They are examining both the crossings at Rosignol as well as Blairmont.”According to the Public Infrastructure Minister MARAD will be looking at the safety of the vessels as well as the standard for the boats that they are hoping to reintroduce.On the other hand, T&HD will be looking at the safety and conditions of the stelling and the crossings. “They would have done the examination of the boat as well at the New Amsterdam Stelling and whatever emergency works, if needed, will be executed,” Patterson added.Additionally, a proposal has been made for heavily subsidizing the crossing for school children and the elderly on the river taxi service. The extent of the subsidy will be finalized after discussions with the Ministries of Education and Social Protection, said Patterson.Patterson explained that the wharf taxis could have been implemented since Cabinet approved the motion. He said that although he was met with proposals to use the MARAD fleet of river vessels, the government is seeking to solicit vessels owned by the residents of Region Five and Six to provide the service.“It is not only looked at as transportation, it is looked at as the revitalization of a community,” he said. The Minister mulled over starting off with the MARAD fleet, and letting the residents groove into offering the service.The Minister, along with Minister within the Ministry, Annette Ferguson, was scheduled to meet the Berbice Chamber of Commerce, of both Regions Five and Six to explain the way they intend to introduce the river taxi service.The Junior Minister revealed that they will also be meeting with the minibus and taxi associations and other stakeholders to ensure that the taxis are reintroduced and “savings being passed on to the vulnerable groups.”September 08, 2015More shocking revelations on the Berbice Bridge… Private investors get tax-free ride on profitsNew GPC boss, Dr. Ranjisinghi ‘Bobby’ RamroopNew GPC’s rep on board, Ravie RamcharitarAs more details emerge over the questionable financial structure of the Berbice River Bridge, there are disclosures that as part of the sweetheart deal, the Bharrat Jagdeo administration granted New GPC and other private investors sweeping tax exemptions on their returns.The bridge is now claiming imminent insolvency unless its tolls are increased or it is allowed to run the structure for 50 years, instead of the 21 years.Investors were guaranteed lucrative rates of returns on their investments between 15 per cent and 23 percent. Those rates would stand out starkly against average rates of about 11 per cent 12 percent that normal investors earn from projects.The Berbice River Bridge Act, assented to by Jagdeo in January 2006, was tailored specifically to ensure that profits were realized.Section 20 of the act states: “All income earned by the concessionaire shall be exempt from Corporation Tax, Income Tax and Withholding Tax for the duration of the Concession Agreement or for the extended periods that the Minister responsible for finance may deem necessary, on being satisfied that the terms and conditions of the Concession Agreement may be amended or varied.”The Act also allowed for all dividends payable to shareholders be exempted from Corporation Taxes, Income Taxes and Withholding Tax.While tax holidays have become a norm for investors, the guaranteed rate of return of 15 -23 percent would shed light on why a number of companies including New GPC and Queens Atlantic Investments Inc. (QAII) and Hand-in-Hand Insurance were so eager to jump on board.New GPC and QAII are owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, a close friend of Jagdeo.The high returns are now being blamed on the current financial problems that the Berbice Bridge Company Inc. (BBCI).According to the BBCI annual report of 2014, the entity saw revenues increasing by $78M to $1.34B. The losses were $239M, compared to 2013 when it was $289M.Accumulated losses at December 31, 2014, was $1.5B with $571M paid to investors as interest on their returns.The bridge company has been warned time and again that its high repayments to shareholders and debtors were highly unsustainable and could lead to problems.The auditors, TSD Lal and Co., in 2014 annual report, noting that the shareholders’ deficit was $1.1B, warned that company continued to make losses. “Continuation of the company as a going concern is dependent of the ability of the company to make substantial profits in the future and to generate a steady cash flow to meet liabilities as they fall due.”Former presidentBharrat JagdeoHand-in-Hand’s head and BBCI’s Chairman, Keith EvelynThe auditors went further. “We have considered management’s representation and have concluded that there is a material uncertainty that cast significant doubt on the entity’s ability to continue as a going concern and, therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business.”BBCI has written to the state-owned National Insurance Scheme, asking for the 2014 dividends to be waived.The Government of Guyana has been waiving its returns too after BBCI claimed it cannot pay.BBCI is under the microscope now in a stalemate row with Government over reduction in tolls.The David Granger administration had promised on the campaign trail to introduce measures to reduce costs for the travelling public of Berbice.In his August 10 speech to the National Assembly on 2015 national budget, Finance Minister, Winston Jordan, announced a reduction of $300 from $2,200 for cars. All other categories were reduced by 10 percent.However, BBCI is insisting that it wants to take the matter of the tolls reduction to its shareholders.The new administration has been complaining that the financial structure of BBCI was deliberately done to place control and profits in the hands of a few companies that are predominantly owned by friends of the previous administration.The US$40M bridge was commissioned in December 2008, built largely under a private/public partnership from an overseas loan.The financial structure of the company was deliberately done in a manner to allow the equity shareholders whose investment is less than five percent ($400 million) of the total funds of the company to exercise controlling interest over the company.Of the $400 million, New GPC and Ramroop Group own 40 percent and the Hand-in-Hand Group 10 percent.NIS has invested $950M in shares but had little say in the affairs despite the 76 percent interest.The other equity shareholders are Secure International Finance Company ($80 million); Demerara Contractors Limited ($40M); Hand in Hand Motor & Life Insurance Company ($40M), and NIS ($80 M).The bridge has been providing a critical link between the city and East Berbice, where thousands and rice farmers and sugar workers live.Government, in face of the stalemate, has announced that it will be introducing river taxis to reduce costs for students and senior citizens.September 09, 2015Tolls stalemate…Berbice businesses back Govt. on water taxis– urge review of concession agreement The Berbice Chambers are calling for a review of the agreement with the Berbice Bridge Company Inc. (BBCI).This came out when Minister of Public Infrastructure, David Patterson, and Second Vice President and Minister of Public Security, Khemraj Ramjattan, met Monday with representatives of the various Chambers of Commerce in Berbice.Minister within the Ministry of Public Infrastructure, Annette Ferguson, was also at the meeting.The meeting with representatives from the Upper Corentyne Chambers of Commerce and Industry (UCCCI); West Berbice Chamber of Industry & Commerce (WBCIC);Central Corentyne Chamber of Commerce (CCCC) and Berbice Chamber of Commerce and Development Association (BCC&DA) provided the opportunity for the government to inform businesses in the region on the status of negotiations with BBCI and the intended implementation of water taxis, a statement from Government said yesterday.Minister Patterson informed the Chambers that the government made approaches to the management of the BBCI, to reduce the tolls by $300 for motor vehicles, and ten percent on other vehicles, in lieu of a subsidy. The subsidy was planned to increase yearly, as it was the administration’s intention to reduce the tolls at the bridge every year bringing it to an acceptable rate for commuters.Ministers of Public Infrastructure, David Patterson, Annette Ferguson, and 2nd Vice President and Minister of Public Security, Khemraj Ramjattan, at the meeting on Monday with the Berbice Chambers of Commerce. Also in the photo are Regional Chairman for Region Six, David Armogan and Regional Executive Officer, Dr. Verasammy Ramayya.“Today the discussion is not moving apace, because the BBCI put up a position that there were other issues they want discussed first, such as an extension of the concession period, fee increase and so on,” Patterson told the representatives of the Chambers.He added that although the administration in dicated its willingness to pursue talks on the matters of concern to BBCI, the company continues to hold the commuters to ransom.During the interaction, members of the Chambers of Commerce revealed that businesses moving large goods and lumber were affected by an unfair implementation of charges by the bridge company. Patterson said that such a practice does not augur well for business.Additionally, a faulty scale saw persons paying in excess of US$300 to ship goods from Crabwood Creek to Georgetown. This increased transportation costs, thereby causing the businesses to lose their competitive edge.“Representatives from the Berbice Chambers of Commerce recommended that the government scrutinize the entire agreement with a view to making necessary amendments. Further, tolls should be reduced to $1500 for motor cars,” the Government statement said.Patterson said that amending the contract would mean that Government would have to exercise its power on the bridge company, a thing that the administration is not keen on, as it sends the wrong impression to potential investors.“We intend to stand on the agreement made, and work within its confines. Also, we will work to further negotiations with management (of the Bridge), to arrive at an agreement,” Patterson told the Chambers.Other recommendations made by the Chambers of Commerce are to extend the concessions offered for the elderly and school children to include nurses and teachers, to implement a shuttle bus service system, and to review the financial model of the agreement to ascertain whether or not it is feasible to increase the concessionary period and simultaneously reduce the tolls.The meeting ended in consensus on the implementation of the water-taxi service.Minister Patterson said that the implementation is an opportunity for entrepreneurs in the area to earn a living. He added that while he can utilize available vessels under his command, he prefers the entrepreneurs from Regions Five and Six to provide the service.The bridge is a sore point for Government which has said that the former administration hijacked it from the Guyanese people, placing its close friends as shareholders although the State has more monies in it. BBCI, as a result, has been dictating the direction of the bridge without allowing much say from the Government of Guyana.September 11, 2015Jagdeo claims Ramroop is losing money with Berbice Bridge deal– But insists the Company is a “brilliant investment”At a Tuesday afternoon press conference, Opposition Leader, Bharrat Jagdeo, essentially highlighted the Berbice River Bridge as a brilliant investment but refused to face reality in admission.Jagdeo told the media that the Inter-American Development Bank (IDB) following a feasibility study did not want to support the project when it was proposed. He said that this caused the then government to take the route of entering into a Public Private Partnership (PPP).Jagdeo admitted that Financial Analysts, Christopher Ram and Ramon Gaskin had advised, in the early stages, that the investment would not yield much benefit. Those experts advised the government against going ahead with the investment at that time.Opposition Leader, Bharrat JagdeoJagdeo sought to debunk articles published by Kaieteur News to the effect that the Berbice River Bridge is a cash cow for friends and supporters of the People’s Progressive Party. He said that the bridge is a burden to the State.He said that his best friend, Dr Ranjisinghi ‘Bobby’ Ramroop is yet to receive a single cent on his investment.Kaieteur News noted that the structure of the Berbice Bridge Company Inc. (BBCI) allows equity shareholders whose investment is less than five percent ($400 million) of the total funds of the company to exercise controlling interest over the company. Of the $400 million, the NEW GPC owned by Ramroop has 40 percent and Hand-in-Hand owns 10 percent.Kaieteur News lamented the fact that the bridge toll is so high that Berbicians complain. The National Insurance Scheme (NIS), the largest investor, is yet to receive a single cent of dividend, the newspaper reported.The newspaper added that from all indications, Jagdeo’s friends were the only ones reaping real benefits from the bridge.However, on Tuesday, Jagdeo said that even Ramroop is not benefitting from the Bridge. He said that Ramroop is in the same boat with NIS. Jagdeo even admitted that the toll is too high. “I would want the tolls everywhere to come down, even at the Berbice Bridge.”But even after making such admissions, Jagdeo said that he thinks the Bridge is a “brilliant investment.”Generally, an investment is judged by its profitability. Good investments are expected to yield huge profits for its investors.But when Jagdeo was asked if he now feels that he should have listened to Ram and Gaskin when they advised against investing in the Berbice Bridge, he responded in the negative.Berbice BridgeJagdeo said, “You hear things like bring the bridge to profitability and then you hear things like a cash cow for friends and family of the PPP so let’s look at the reality.”The politician said that after IDB refused to invest, “we then wondered how we were going to put together the money for this because it all could not have come from the treasury. The IMF was already saying the fiscal deficit was high and said that there could not be more chunky projects because of the implications of the high fiscal deficit; so we decided to have Public Private Partnership.”He said that Ram and Gaskin had advised New Building Society against investing, “So we struggled to put together the project’s financing but finally we did…So now the investors are here and we think it is a good investment; until now.”Jagdeo said that the private investors and NIS are essentially effectively subsidizing the bridge.“NIS has not received a single dollar of return from its investment in the bridge which led Finance Minister Winston Jordan to say that it was a bad investment for NIS. So on one hand we hear it is a cash cow for PPP friends who invested but the reality is that they have not received a single cent in dividend.“This does not come over to people…If it is bad investment for NIS wasn’t it a bad investment also for Ramroop who did not get a cent in return. Wasn’t it a bad investment for him? So he should not have put his money there?”Jagdeo claimed that BBCI has retained earnings to pay the dividends “but it is just that the board never paid out the dividends.”Jagdeo told the media that if the same rate structure is retained and there is a growth in traffic, the BBCI can give its investors a good return on the capital as well as provide the service needed. “We have to grow the traffic, the use of the bridge.”September 16, 2015Berbice Bridge tolls stalemate…Make agreement public, pay off private investors – Ramon GaskinGovernment should immediately move to release a secret concession agreement that allowed private investors to take control of the US$40M Berbice River Bridge.So says economist, Ramon Gaskin, who yesterday also urged for the new administration to also take steps to regain control of the controversial structure- a critical linkage between East and West Berbice.“This document has to be published. The people need to know the kind of arrangements that were made. The Berbice Bridge Act says that the concession agreement must not be made public but we cannot continue in this manner,” the outspoken commentator said yesterday.Describing the deal as a “bad” one, Gaskin explained that the concession agreement, which was signed between the Government of Guyana and the Berbice Bridge Company Inc. (BBCI), spell out dividends and repayments, and toll rates which need to be examined.With revelations in recent times that the previous People’s Progressive Party/Civic (PPP/C) government agreed to allow investors returns of up to 23 percent, the questions have been coming why such lucrative terms were even contemplated in the first place.“Government should now move to pay off the private investors. It (BBCI) cannot remain a private company. We have to agitate for that concession to be made public. We also in the same vein need to have the details of the Marriott Hotel…and other projects disclosed.”Economist, Ramon GaskinDr. Ranjisinghi ‘Bobby’ RamroopBharrat JagdeoGaskin also believed that all deals made with Government should, as a matter of course, be laid before the National Assembly.BBCI is reporting accumulated losses of $1.5B at December 31, 2014.Since its opening in late 2008, the bridge failed to attract the number of vehicles that were in the projections, BBCI claimed.As a matter of fact, the company earlier this year, applied to the previous Government for an increase in tolls.Facing the May 11th General Elections, the PPP/C administration did not consider the application.The new David Granger administration, as part of its campaign promises, moved to have the tolls reduced, announcing a drop of car tolls from $2,200 to $1900 and 10 percent for all other categories.However, the bridge’s Directors refused to implement the reductions saying that it needs to take the matter to its shareholders.Tax BreaksIt started to unravel after then.Guyana learnt that as part of the sweetheart deal, the Bharrat Jagdeo administration granted New GPC and other private investors sweeping tax exemptions on their returns.New GPC Director on BBCI, Ravie RamcharitarBBCI’s Chairman/Hand-in-Hand boss, Keith EvelynBBCI is claiming imminent insolvency unless its tolls are increased or it is allowed to run the structure for 50 years, instead of the 21 years.The 15 per cent and 23 percent return rates would contrast starkly against average rates of about 11 per cent 12 percent that normal investors earn from projects.The Berbice River Bridge Act, assented to by Jagdeo in January 2006, was tailored specifically to ensure that profits were realized.It allowed all income earned by the concessionaire to be exempted from Corporation Tax, Income Tax and Withholding Tax for 21 years. The act also allowed for all dividends payable to shareholders to be exempted from Corporation Taxes, Income Taxes and Withholding Tax.While tax holidays have become a norm for investors, the guaranteed rate of return of 15 -23 percent would shed light on why a number of companies including New GPC and Queens Atlantic Investments Inc. (QAII) and Hand-in-Hand Insurance were so eager to jump on board.New GPC and QAII are owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, a close friend of Jagdeo.The high returns are now being blamed on the current financial problems of the Berbice Bridge Company Inc. (BBCI).The bridge company has been warned time and again that its high repayments to shareholders and debtors were highly unsustainable and could lead to problems.The auditors, TSD Lal and Co., in its 2014 annual report, noting that the shareholders’ deficit was $1.1B, warned that the company would continue to make losses. “Continuation of the company as a going concern is dependent on the ability of the company to make substantial profits in the future and to generate a steady cash flow to meet liabilities as they fall due.”No DividendsThe auditors went further. “We have considered management’s representation and have concluded that there is a material uncertainty that cast significant doubt on the entity’s ability to continue as a going concern and, therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business.”BBCI has written to the state-owned National Insurance Scheme, asking for the 2014 dividends to be waived.The Government of Guyana has been waiving its returns too after BBCI claimed it cannot pay.The US$40M bridge was commissioned in December 2008 and was built largely under a private/public partnership from an overseas loan.The financial structure of the company was deliberately done in a manner to allow the equity shareholders whose investment is less than five percent ($400 million) of the total funds of the company to exercise controlling interest over the company.Of the $400 million, New GPC and Ramroop Group own 40 percent and the Hand-in-Hand Group 10 percent.In effect, the bridge barely made enough monies to pay a few favoured investors, who stood first in line to receive their returns.NIS has invested $950M in shares but had little say in the affairs despite the 76 percent stake.The other equity shareholders are Secure International Finance Company ($80 million); Demerara Contractors Limited ($40M); Hand in Hand Motor & Life Insurance Company ($40M), and NIS ($80 M).Critics were against the appointment of Directors of Ramroop and Hand-in-Hand who took control of the Board of Directors.The bridge has been providing a critical link between the city and East Berbice, where thousands of rice farmers and sugar workers live.Government, in face of the stalemate, has announced that it will be introducing river taxis to reduce costs for students and senior citizens.Businesses in Berbice, unhappy with the monopoly control by the bridge company, have backed the introduction of the passenger speedboats.September 19, 2015Tolls stalemate… Berbice River taxis to start operations from MondayBoard Chairman, Keith Evelyn EvelynBoard Director,Ravie RamcharitarGovernment is set to introduce two water taxis from Monday, as a standoff continues with the Berbice Bridge Company Inc. (BBCI).Government has been communicating with officials of the bridge but no decision has yet been taken on the reduction of tolls, Minister of State, Joseph Harmon, told media operatives yesterday.The two river taxis will provide a cheaper, alternative means for especially students and senior citizens.Government is hopeful that “good sense” will prevail with BBCI deciding to do the right thing, Harmon said.The Berbice Bridge stalemate was sparked after Government announced in its national budget early August, that it has approved a $300 drop in tolls for cars crossing the facility– this was from $2,200. For all other categories of vehicles, the reduction was 10 percent.However, BBCI’s Board of Directors refused to implement the reduction, claiming that it has to take the matter first to its shareholders.Government then announced that it was introducing passenger speedboats to help lessen the burden of high tolls on the travelling public from Berbice.Already, businesses in Berbice have backed the introduction of the vessels.There have been calls from critics for Government to pay off the investors of the bridge and take over the operations of the facilities.With revelations in recent times that the previous People’s Progressive Party/Civic (PPP/C) government agreed to allow investors returns of up to 23 percent, the questions have been coming why such lucrative terms were even contemplated in the first place. The returns have been blamed on why the tolls are so high.BBCI is reporting accumulated losses of $1.5B at December 31, 2014.Since its opening in late 2008, the bridge failed to attract the number of vehicles that were in the projections, BBCI claimed.As a matter of fact, the company earlier this year, applied to the previous Government for an increase in tolls.Facing the May 11 General Elections, the PPP/C administration did not consider the application.Guyana learnt that as part of the sweetheart deal, the Bharrat Jagdeo administration granted New GPC and other private investors sweeping tax exemptions on their returns.New GPC’s boss, Dr.Ranjisinghi RamroopBharrat JagdeoBBCI is claiming imminent insolvency unless its tolls are increased or it is allowed to run the structure for 50 years, instead of the 21 years.The 15 per cent and 23 percent return rates would contrast starkly against average rates of about 11 per cent, 12 percent that normal investors earn from projects.The Berbice River Bridge Act, assented to by Jagdeo in January 2006, appeared to have been tailored specifically to ensure that profits were realized for a few investors.It allowed all income earned by the concessionaire to be exempted from Corporation Tax, Income Tax and Withholding Tax for 21 years. The act also allowed for all dividends payable to shareholders to be exempted from Corporation Taxes, Income Taxes and Withholding Tax.While tax holidays have become a norm for investors, the guaranteed rate of return of 15 -23 percent would shed light on why a number of companies including New GPC and Queens Atlantic Investments Inc. (QAII) and Hand-in-Hand Insurance, were so eager to jump on board.New GPC and QAII are owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, a close friend of Jagdeo.The high returns are now being blamed on the current financial problems of the Berbice Bridge Company Inc. (BBCI).The bridge company has been warned time and again that its high repayments to shareholders and debtors were highly unsustainable and could lead to problems.The auditors, TSD Lal and Co., in its 2014 annual report, noting that the shareholders’ deficit was $1.1B, warned that the company would continue to make losses.The financial structure of the company, according to critics and Government appeared to have been deliberately done in a manner to allow the equity shareholders whose investment is less than five percent ($400 million), of the total funds of the company to exercise controlling interest over the company.Of the $400 million, New GPC and Ramroop Group own 40 percent and the Hand-in-Hand Group 10 percent.In effect, the bridge barely made enough monies to pay a few favoured investors, who stood first in line to receive their returns.NIS has invested $950M in shares but had little say in the affairs despite the 76 percent stake.The other equity shareholders are Secure International Finance Company ($80 million); Demerara Contractors Limited ($40M); Hand in Hand Motor & Life Insurance Company ($40M) and NIS ($80 M).Critics were against the appointment of Directors of Ramroop and Hand-in-Hand who took control of the Board of Directors.The bridge has been providing a critical link between the city and East Berbice, where thousands of rice farmers and sugar workers live.September 22, 2015Berbice Water Taxi service a success after first day…bus drivers feel the squeezeThe Government provided ‘smooth’ rides yesterday and after years of neglect the New Amsterdam Stelling saw a ‘burst of life’ again. At the centre is the recently implemented Water Taxi Service introduced to cushion the cost of traveling across the Berbice River.There were smiles from students, nurses, pensioners and other persons who chose to utilize the service. Service began from 6:00 hours; there were eight trips by each boat within a period of two hours.The two contracted boats for the day namely ‘Nicolas’ and ‘Shanti’, can both seat 35. The boats were all equipped with safety gear to make the rides safe.A Second Year Student of the New Amsterdam Technical Institute stated that the service is extremely fast, “I didn’t expect to reach over here so early, it was better than the one before.It’s faster, it’s a better way; you can catch your rest and you don’t have to worry about waking up early. If you will miss the boat, it got two boats. As one go over the other one is there.”Other commuters gave ‘thumbs up’ as they exited the boats one by one. Most, if not all said that they were happy with the service provided.One of the Engineers attached to the Transport and Harbours Department, Mr. Galloway, noted that the service ran smooth from the first trip “Everything seems to be going ok.At least, when we asked some passengers just now they said they were happy about it.“You will find that there will be a rush during the morning hours from Rosignal and then you will find another rush later in the afternoon around 3:00. I am happy with the service and I am hoping that it will continue even after the month is up”.The staff of the Transport and Harbours Department was quite engaged in the morning running making sure that all was smooth for the day. Basil Balram captain of the boat, ‘Nicolas’, who has been working the Vreed-en-Hoop – Georgetown boat service for years stated that the two boats were selected after no other boats offered to be a part of the service.According to Captain Balram, “As soon as one boat moves off the other one comes in, so it is fast and we don’t wait for the boats to fill. “There were no hiccups during the trips.The Captain disclosed that the deal was that the Government would pay them $15,000 per trip. When asked if it was feasible his response; “Yeah man it will work out; we have to see how it run”.Other commuters using the Boat Service were to buy a ticket stub from the ticket office located at the Stelling for $140 which was welcomed by many as well.Minibus drivers working Route 56 who would usually pick up passengers from Rosignol and take them straight to their destination were quite annoyed.One bus driver Mr. Smartt stated, “We feel that it will affect us but seeing that it was the first day I can’t make a definite judgment on how it will affect me.”Persaud, another bus driver, stated that it is affecting him greatly, “Berbice here don’t have enough commuters travelling to New Amsterdam so it must affect the bus service which is already here set in place when the bridge was built; it must affect us on a daily basis”.The persons using the boat service were quite satisfied.They are hopeful that it will continue even after the month is up. On the other hand the No. 56 route bus drivers are hoping that it does not take away ‘bread from their mouths’.September 23, 2015Water taxi service begins to bite…Bridge Company begs for meeting with NISAs the Government of Guyana pushes ahead with its stated objective of making life better for all Guyanese, the introduction on Monday of the water taxi service across the Berbice River has started to bite.Striking minibusesThe Number 56 route minibus operators who operate the Rosignol to New Amsterdam route across the Berbice River Bridge took strike action on Tuesday and the Berbice Bridge Company (BBCI) began calling for a meeting with The National Insurance Scheme (NIS) to discuss the lowering of the bridge toll.The minibus operators stated that they were already finding it extremely difficult to make ends meet due to the high cost to cross the bridge. Now with the introduction of the water taxi service and the free crossing for students, nurses and pensioners it is even more difficult.On Tuesday, they staged a protest in the vicinity of the Berbice River Bridge at D’Edward demanding that someone looks into their plight.There are 49 buses that operate the route and according to the owners they were already not being able to work every day, with 14 being off each day limiting them to five days work during the week. Too many buses are on the route.The buses would sometimes make two trips per day, especially on Mondays. However, on Monday they were reduced to one trip for the day with some not being able to make any as the commuter decided to take advantage of the cheaper and faster water taxi service provided by the MV Nicholas and MV Shanit across the Berbice River.The minibus operators said that it is no longer profitable. If the BBCI does not reduce the fare or the water taxis do not stop working then many of us will starve.One official of the minibus association stated that before the Transport and Harbours Department (T&HD) used the pontoon service which operated in the morning and afternoons only. However the water taxis are working whole day and carrying the people free, so who will travel with the bus. Persons are required to pay $120 to cross. The government has also agreed to pay the operators $1,500 per trip.The operators are calling on the government and the BBCI to come to some compromise as quickly as possible so that everybody could get to live. “The bridge company should come clean and state the true position with the bridge. They cannot play selfish and greedy and allow us to starve.”They operators stated that what is happening is hampering their chances of earning a full day’s pay. They feel that the government and those who are involved should come to a quick arrangement. One driver is asking why put systems in place for only children who are crossing the river and not those who have to travel down the coast. He stated that he has 11 children, seven of whom are attending school and he has to fend for them. He is working someone’s bus and is already struggling to make ends meet. He is wondering how he is going to make out now that they are hardly getting work with the introduction of the water taxis.By Tuesday the water taxis service had begun to bed in, with more commuters utilizing the service for the entire day. On Monday the two taxis only did good business in the morning and afternoon hours. On Tuesday business was bright for most of the day.The boats which begin operation at 06:00 hrs and continue until 18:00 hrs operate on a touch- and-go basis and had by 14:00 hours, completed 16 trips.The government was forced to introduce the water taxis across the Berbice River after the hardline stance taken by the BBCI in refusing to reduce the toll to cross the Berbice River Bridge by the $300 which was announced by the Government, even though it had agreed to subsidize the cost.By Tuesday afternoon there were indications that there were more water taxis that were ready to take the river with the arrival of a third boat on a truck.September 26, 2015Jagdeo performs gymnastics on Berbice Bridge…advocates Govt. buyoutFormer President Bharrat JagdeoFormer President, Bharrat Jagdeo, has said that he would not oppose the Berbice Bridge toll being lowered. He is also promoting a buyout of the private equity in the Bridge by Government.Jagdeo, as he hosted a press conference at Freedom House, yesterday, said that his position stems from the promise and advocacy of the coalition A Partnership for National Unity/ Alliance for Change (APNU+AFC) Government. He wants to see if they can deliver on their promise, he said.The People’s Progressive Party Civic (PPP/C), according to Jagdeo, “never promised a reduction of the toll in the (elections) campaign…The PPP could have easily committed a reduction in the toll.”Jagdeo said that the then government had looked at what the persons paid to cross the Berbice River using the ferry service. “They were paying $1,500 for a vehicle already and they had to also pay for every passenger in the vehicle.”According to Jagdeo, what is being charged by the Berbice Bridge Company is similar to what was being paid to use the ferry service, “but the benefit of it is that people can move at their convenience.”He was adamant that it is the APNU+AFC Government “that advocated a $1,000 reduction in the toll.” This, he said, the coalition subsequently revised to $300.“I will never stop supporting anything that can bring benefit to people,” said Jagdeo.He said that he is in fact supportive of all the promises made by the coalition to bring benefit to the people, including a promised 20 per cent increase in pay for public servants.The former president said that Guyana does not have a “co-government”. “If the government wants to buy out the bridge, that is its solution; if it doesn’t want to, fine….if it wants to buy out the bridge and drop the toll as it promised, fine.”He suggested, too, that should Government want to explore some other measures “to implement its promise, fine.”Jagdeo was adamant that if the APNU+AFC Government does not deliver on its promise, “its fine with us too, but they need to be man enough to say that they were wrong again on this, that their campaign was wrong. They said the bridge was a cash cow for friends and family of the PPP.”Jagdeo said the nation is now being told that the Berbice Bridge Company is now claiming that “people didn’t get any dividends on their investment.”He said the impression created, using the description of a ‘cash cow,’ is that people are drawing down large returns on their investments.“We shouldn’t be offering solutions to the government they should fix the problem now…They made the promise, they should fix it.”The former president told members of the local media corps that during a recent party outreach to sections of Berbice, he met with that branch of the Chambers of Commerce and the issues surrounding the bridge was raised.“The issue of the bridge came up and many of them were urging that we get involved,” said Jagdeo.He reported to media operatives, “I said to them, we don’t have co-government now, we have a government, we have an opposition.”Jagdeo reiterated that it was the current government during its campaign that promised a reduction in the tolls being charged to cross the Berbice River utilizing the bridge.He drew reference to the fact that government had set aside $36M to subsidize the bridge company in face of lowered tolls but more than $60M was allocated to the Prime Minister “to fix up his house, buy furniture and a vehicle.”As such, Jagdeo argues that if in fact the priority of the APNU+AFC administration was the lowering of the tolls across the Berbice River, then it could have allocated a larger amount to be used as a subsidy.Guyana, he said, “is not a bankrupt country, they had lots of room…They had more room to do much more in relation to the bridge.”In fact, in his newfound calls in support of a buyout of the equity in the Berbice Bridge, Jagdeo argues that Government has at its disposal some $30B to utilize from the numerous semi-autonomous agencies, “the so called private accounts that the government can transfer anytime.”He was making reference to monies held in private accounts by agencies such as the Guyana Forestry Commission (GFC) and the Guyana Geology and Mines Commission (GGMC), the Lotto Funds, among others.“Remember they said that this money was held outside the budget and the only reason it was held there was for us to steal it…So there is still about $30B being held out there that they can use, I think, if they want they can negotiate a settlement and take back the bridge.”Should the APNU+AFC Government be able to realize this option, Jagdeo said, it can then significantly lower the tolls and this would not require the entire $30B amount available.“They can spend about 15-20 per cent (of the $30B) and get back the bridge…We will support anything that brings down the toll for the Berbice Bridge,” said Jagdeo.October 19, 2015Finance Minister joins negotiations to reduce Berbice Bridge tollGovernment has been at loggerheads with the Directors of the Berbice Bridge Company Inc. (BBCI) over its move to reduce the toll and Head of State, President David Granger, is expecting the situation to be resolved shortly with a settlement in favour of the people of East Berbice.The President was speaking with reporters on the regularly televised ‘ublic Interest’ television programme on Friday last when he reported that Minister of Finance, Winston Jordan, has joined the negotiations with the Directors of the Bridge company.He described the tolls charged to cross the Berbice Bridge as unbearable and intolerable.Asked if government will be looking to take a more forceful approach to getting its demands met, Granger said, “We don’t want to apply coercion.”He did say that it was the expectation that because of the weight of government’s involvement in the ownership of the bridge that the transition would have been more smooth.Government, he said, while not being naïve, “assumed that the company directors would have been more compliant with government in the interest of public.”According to the President, the negotiations are continuing.While not specifically addressing whether government will in fact buy out the private shares in the bridge, he said, at the end of the negotiating process, there is expected to be a settlement.“Our intention is to make sure residents of East Berbice will have access to a reasonable toll on the bridge,” said the President.Asked if the administration misread the complexities of the operation of the bridge and the lowering of the tolls which led to one of the 100 days promise not being honoured, the President said government did not want to take a sledge hammer approach to the matter.He concedes that the reduction of the bridge tolls is a “commitment we gave that we have not fulfilled but everyone knows we have been trying.”The President said Government has approached lowering the bridge toll in a legal and official manner.Since taking Office and meeting with the stonewalling of the directors of BBCI, Government has in the interim, introduced a water taxi service at a subsidized cost.At the end of last month, Minister within the Ministry of Public Infrastructure Annette Ferguson, had presented an update on the service and said that it was utilized by in excess of 10,000 persons since its introduction.“Between the period of September 21-26, we had a total of 5,264 passengers (4,109 adults and 1,155 children and pensioners); for September 27-October 03, a total of 8,377 passengers (6,800 adults and 1,577 children and pensioners), totaling 13,641 passengers, who have utilised the river taxis for the period September 21 to October 3,” Minister Ferguson explained.The Granger-led Administration, while in opposition, had expressed concerns about the high toll placed on the citizenry to cross the Berbice River Bridge, which was constructed via a public-private partnership.Since taking office, the new Government has made proposals to subsidise the cost of the toll reduction, which would have seen a steady decrease in tolls for commuters, thereby bringing relief.However, the proposal to the Berbice River Bridge Corporation was rejected, and wanting to honour the commitment made, Government implemented a water taxi service for the complaining residents.October 22, 2015DDL offers to sell Berbice Bridge shares to Govt.One of the shareholders in the Berbice River Bridge has offered to sell its shares in the Berbice Bridge Company Inc. (BBCI) to the Government of Guyana.Prime Minister and First Vice President, Moses NagamootooPrime Minister and First Vice President, Moses Nagamootoo, made the announcement yesterday, as he hosted his first ever post Cabinet Press engagement at the Ministry of the Presidency.According to Nagamootoo, Demerara Distillers Limited (DDL) has agreed to sell Government the 40 million shares it owns in the bridge company. The company has an asking price of some $45M, but Nagamootoo is optimistic that through negotiations a more convenient price could be arrived at.Nagamootoo told media operatives, “Cabinet accepted the offer made by DDL to sell its shares in the BBCI to the Government of Guyana…The offer comprises of 40 million shares.”The shares are held by Demerara Contractors and Engineering Limited, a wholly owned subsidiary of DDL and represents 10 per cent of the shares in BBCI.According to Nagamootoo, “This government is determined to reduce the tolls attached to the Berbice River Bridge.”He drew reference to previous measures taken by the coalition A Partnership for National Unity plus Alliance for Change (APNU+AFC) Government, such as the introduction of river taxis at a subsidized cost.This, he said, was done to “ease the pressures and burdens of the people who use the bridge.”According to the Prime Minister, Government has adopted a position that while negotiating with the bridge company to effect the reduction in the toll, “We are also thinking of how this government can place itself in a better negotiating position, by attracting shares so that it could have a stronger voice in the governing body of this company.”The Prime Minister said that government was taking its promise for a reduction in the tolls “to a further stage of ensuring that our voice is not a feeble one and that the dominant partners in the Berbice Bridge would recognize that we are serious.”Prime Minister Nagamootoo has in fact put the shareholders on notice saying, “We are prepared to go even further.”He announced too, that Cabinet has authorized the Minister of Finance, Winston Jordan, to conclude the purchase of the shares.“He (Jordan) has also been advised to seek the best possible price for the shares,” said Nagamootoo.He said that Government is cognizant of the asking price but is optimistic that “DDL as an outstanding corporate citizen of Guyana would agree to a reasonable settlement of this matter.”Asked by this publication about any negotiations involving the other shareholders in the company, the Prime Minister said, “I believe what government seeks to do is to send out a broad feeler to all those who have shares.”The New Guyana Pharmaceutical Company (GPC) which is owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, has 80M in share stock in the Berbice Bridge.The other principal investors in the bridge include the National Insurance Scheme with an initial 80M shares, Secure International Finance Company with 80M shares, Demerara Contractors which holds 40M shares, Hand in Hand Motor & Life Insurance Company that holds 40M shares and the Colonial Life Insurance Company with 80M shares.The remaining and overwhelming majority of shares held in the Berbice Bridge Company belong to Government through the National Industrial and Commercial Investment Limited (NICIL) and stands at $950M in preference shares. This has since been sold to NIS, bringing its share stake to in excess of 1 billion shares.October 30, 2015Berbice Bridge Co. buckles, agrees to lower tollsto take $40M Govt. subsidyDays after Government said that it was buying out shares in the Berbice River Bridge Company Inc (BBCI), the company has announced that it will be accepting an offer by the administration to pay a subsidy in order to effect a proposed toll reduction in the charges to cross the bridge.According to a formal announcement yesterday, the management of BBCI indicated that they have submitted a proposal to the coalition government, accepting its proposed $40M subvention towards reduction of the toll.It was noted that the Minister within the Ministry of Public Infrastructure, Annette Ferguson, stated that indeed the proposal was sent by the company, indicating their willingness to accept the subvention, being offered by the government, and that the document is with Cabinet currently being reviewed.“It is expected that before the end of the week, feedback will be given.”It was noted that Dr. Surendra Persaud, who is a representative of the BBCI’s Board of Directors, said the proposal covers multiple aspects of the relationship between the BBCI and the administration.“Our proposal deals with the subsidy and other aspects of the relationship of the bridge company and the government, reduced into a legal framework…While it is open to be amended, government still has to perform due diligence by ensuring they agree with the clauses of the proposal,” Dr Persaud said.Egbert Carter, BBCI’s Chairman, has indicated that while much was said regarding the inability of the company to readily accept the subsidy proposal, there was need to first notify the shareholders and “now that they would have agreed, we can accept the proposal made by the administration”.The BBCI had first rejected the government’s offer of the financial support on the premise that its shareholders were not consulted on the matter.The government, in an effort to relieve the travelling public from paying high tolls, had implemented at a subsidized cost river taxis operating on the Berbice River.This past week government, through the Prime Minister and First Vice President Moses Nagamootoo, had announced that there was a major breakthrough as government seeks to reduce the tolls charged to cross the Berbice River Bridge, as one of the shareholders has offered to sell its shares owned in the Berbice Bridge Company Inc (BBCI) to the Government of Guyana.Nagamootoo announced that Demerara Distillers Limited (DDL) has agreed to sell government the 40 million shares it owns in the bridge company.According to Nagamootoo, the company has called an asking price of some $45M, but he is optimistic however that through negotiations a better price could be arrived at.In making the announcement, Nagamootoo told media operatives, “Cabinet accepted the offer made by DDL to sell its shares in the BBCI to the Government of Guyana…The offer comprises of 40 million shares.”The shares are held by Demerara Contractors and Engineering Limited, a wholly owned subsidiary of DDL and represents 10 per cent of the shares in BBCI.According to Nagamootoo, “this government is determined to reduce the tolls attached to the Berbice River Bridge.”He drew reference to previous measures taken by the coalition A Partnership for National Unity, Alliance for Change (APNU+AFC) Government, such as the introduction of the river taxis. This, he said, was done to “ease the pressures and burdens of the people who use the bridge.”The New Guyana Pharmaceutical Company (GPC) which is owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, has 80M in share stock in the Berbice Bridge.The other principal investors in the bridge include the National Insurance Scheme with an initial 80M shares, Secure International Finance Company with 80M shares, Demerara Contractors which holds 40M shares, Hand in Hand Motor & Life Insurance Company that holds 40M shares and the Colonial Life Insurance Company with 80M shares.The remaining and overwhelming majority of shares held in the Berbice Bridge Company belonged to Government through the National Industrial and Commercial Investment Limited (NICIL) and stands at $950M in preference shares. This has since been sold to NIS, bringing its share stake to in excess of 1 billion shares.November 13, 2015Berbice Bridge Company “set to lower tolls”By Kiana WilburgPublic Infrastructure Minister, David PattersonAfter much resistance and posturing, the coalition government and the owners of the Berbice River Bridge Company Inc (BBCI) will soon sign an agreement to lower the bridge tolls. This is according to Minister of Public Infrastructure, David Patterson.Reaching to this point was surely not a walk in the park, Patterson said. He recalled the challenges faced in the beginning when government announced its plans to have the tolls reduced. But the Berbice Bridge Company had objected to it, leaving government with no option but to implement River Taxis.The River Taxis were used by hundreds of Berbicians and the undertaking was deemed a success.Minister of Governance Raphael Trotman was the first government official to indicate to the media last week that despite the troubles between the two parties, there seemed to be some light at the end of the tunnel. He noted that government has finally reached a place where it can be at the table with the dominant players in fruitful discussions as opposed to what existed before.Finance Minister Winton Jordan supported his colleague’s position on the matter. In an invited comment he said, “I believe that we have come to an understanding as it relates to the lowering of the fares. Of course, the devil is always in the detail as to how you implement it, but at the moment, the matter is in the hands of Attorney General (AG), Basil Williams and Patterson.”He added, “As you know, the Public Infrastructure Minister is the one with responsibility for the bridge arrangements, but I approve payments…”Patterson said yesterday that both parties have agreed to have the tolls lowered, and as such government has crafted an agreement which first has to be approved by the AG, after which, it will be sent to the Berbice Bridge Company for perusal, signed by both parties, and then implemented.“The agreement speaks to certain terms and conditions, subventions and payments and that is all I could reveal at this point, or speak on at this point, because as I said before, it has to be approved by the AG.”Patterson reiterated, “Both parties have agreed to lower the tolls. But it is just the mechanism to get it in place and is in the form of the agreement which we expect will be signed very soon.”The Granger-led Administration, while in opposition, had expressed concerns about the high toll placed on the citizenry to cross the Berbice River Bridge, which was constructed via a public-private partnership.Since taking office, the new Government has made proposals to subsidise the cost of the toll reduction, which would have seen a steady decrease in tolls for commuters, thereby bringing relief.In October, Government said that it was buying out shares in the Berbice River Bridge. In this regard, Prime Minister and First Vice President Moses Nagamootoo had announced that one of the shareholders offered to sell its shares owned in the Berbice Bridge Company to the Government of Guyana.Nagamootoo announced that Demerara Distillers Limited (DDL) agreed to sell government the 40 million shares it owns in the bridge company.According to Nagamootoo, the company has called an asking price of some $45M, but he is optimistic that through negotiations, a better price could be arrived at.But in the wake of this news, the Berbice Bridge Company said that it would be accepting an offer by the administration to pay a $40M subsidy in order to effect a proposed toll reduction in the charges to cross the bridge.Egbert Carter, BBCI’s Chairman, had indicated that while much was said regarding the inability of the company to readily accept the subsidy proposal, there was need to first notify the shareholders and “now that they would have agreed, we can accept the proposal made by the administration”.The New Guyana Pharmaceutical Company (GPC) which is owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, has $80M in share stock in the Berbice Bridge.The other principal investors in the bridge include the National Insurance Scheme with an initial $80M share, Secure International Finance Company with $80M shares, Demerara Contractors, which holds $40M in shares, Hand in Hand Motor & Life Insurance Company that holds $40M in shares and the Colonial Life Insurance Company with $80M in shares.The remaining and overwhelming majority of shares held in the Berbice Bridge Company belonged to Government through the National Industrial and Commercial Investments Limited (NICIL) and stands at $950M in preference shares. This has since been sold to NIS, bringing its share stake to in excess of one billion.November 17, 2015Berbice Bridge tolls lowering targeted for December 1st– 62,000-plus passengers travelled on river taxisGovernment is targeting December 1 as the day when the vehicles crossing the Berbice River Bridge start paying lower tolls.Minister of Public Infrastructure, David Patterson, made the disclosure duringRiver taxis across the Berbice River made over 2800 trips since being introduced in late September, Government says.a press conference, yesterday.Very shortly, Government will be sending the agreement for the Berbice Bridge Company Inc., (BBCI) to sign.Provided there is no further stalemate, Minister Patterson said that Government expects the bridge company to accept the $40M subvention and start implementing the tolls as of December 1.The agreement caters for the toll for passenger cars and buses to be reduced from $2,200 to $1,900, a 13.6 percent decline, while other types of vehicles will be reduced by 10 percent.The toll reductions had been a campaign promise by the coalition and were outlined in Budget 2015. It was expected to be implemented from September 1, 2015, but was not because negotiations between the Government and BBCI remained deadlocked.BBCI had asked the Government for some extension so that it could discuss the implications of the proposals with their stakeholders.In the interim, as the commuters awaited the reduced toll, the Government had implemented river taxis to ply the Rosignol to New Amsterdam route.Minister Patterson told reporters, yesterday, that between September 21 and November 7, some 62,465 persons had used the boats. Of this, 11,623 were either students or the elderly.Government has said that its efforts to reduce the Berbice Bridge toll is part of a plan to alleviate the burden of the high fare for the over 150,000 Guyanese who live within Regions Five and Six that traverse the bridge to access education and health services, conduct business and travel on a daily basis.In total, the river taxis conducted over 2,800 trips across the river between September 21 and November 7.The bridge has been a sore issue for the opposition and Berbicians who have been complaining about the tolls.Built as a public/private partnership, the financing of the structure and how it ended up in the hands of a few private individuals with little say for Government, has seen the administration moving to increase its shares.November 28, 2015Berbice Bridge still to return signed agreement for tolls loweringLower tolls for the Berbice Bridge were expected to be implemented by Tuesday, December 1, but the operator is still to sign and return the agreement to Government for it to become a reality.The Berbice Bridge Company Inc. is still to return a signed agreement that will pave the way for lower tolls from Tuesday.Giving an update yesterday, Minister of Public Infrastructure, David Patterson, said that a draft agreement was sent earlier this month to the Berbice Bridge Company Inc., (BBCI) to sign.It set forth the conditions where the tolls will be lowered by Tuesday and the BBCI will start accepting the $40M Government subvention.The non-receipt of the signed agreement means that for all intents and purposes, the December 1, deadline is still very much in limbo.The agreement caters for the toll for passenger cars and buses to be reduced from $2,200 to $1,900, a 13.6 percent decline, while other types of vehicles will be reduced by 10 percent.The toll reductions had been a campaign promise by the coalition and were outlined in Budget 2015. It was expected to be implemented from September 1, 2015, but was not because negotiations between the Government and BBCI remained deadlocked.BBCI had asked the government for some extension so that it could discuss the implications of the proposals with their stakeholders.In the interim, as the commuters awaited the reduced toll, the Government had implemented river taxis to ply the Rosignol to New Amsterdam route.Minister Patterson told reporters earlier this month that between September 21 and November 7, some 62,465 persons had used the boats. Of this, 11,623 were either students or the elderly.Government has said that its efforts to reduce the Berbice Bridge toll is part of a plan to alleviate the burden of the high fare for the over 150,000 Guyanese who live within Regions Five and Six that traverse the bridge to access education and health services, conduct business and travel on a daily basis.In total, the river taxis conducted over 2,800 trips across the river between September 21 and November 7.The bridge has been a sore issue for the opposition and Berbicians who have been complaining about the tolls.Built as a public/private partnership,NFL Jerseys Outlet From China, the financing of the structure and how it ended up in the hands of a few private individuals with little say for Government, has seen the administration moving to increase its shares.November 28, 2015Berbice Bridge still to return signed agreement for tolls loweringLower tolls for the Berbice Bridge were expected to be implemented by Tuesday, December 1, but the operator is still to sign and return the agreement to Government for it to become a reality.The Berbice Bridge Company Inc. is still to return a signed agreement that will pave the way for lower tolls from Tuesday.Giving an update yesterday, Minister of Public Infrastructure, David Patterson, said that a draft agreement was sent earlier this month to the Berbice Bridge Company Inc., (BBCI) to sign.It set forth the conditions where the tolls will be lowered by Tuesday and the BBCI will start accepting the $40M Government subvention.The non-receipt of the signed agreement means that for all intents and purposes, the December 1, deadline is still very much in limbo.The agreement caters for the toll for passenger cars and buses to be reduced from $2,200 to $1,900, a 13.6 percent decline, while other types of vehicles will be reduced by 10 percent.The toll reductions had been a campaign promise by the coalition and were outlined in Budget 2015. It was expected to be implemented from September 1, 2015, but was not because negotiations between the Government and BBCI remained deadlocked.BBCI had asked the government for some extension so that it could discuss the implications of the proposals with their stakeholders.In the interim, as the commuters awaited the reduced toll, the Government had implemented river taxis to ply the Rosignol to New Amsterdam route.Minister Patterson told reporters earlier this month that between September 21 and November 7, some 62,465 persons had used the boats. Of this, 11,623 were either students or the elderly.Government has said that its efforts to reduce the Berbice Bridge toll is part of a plan to alleviate the burden of the high fare for the over 150,000 Guyanese who live within Regions Five and Six that traverse the bridge to access education and health services, conduct business and travel on a daily basis.In total, the river taxis conducted over 2,800 trips across the river between September 21 and November 7.The bridge has been a sore issue for the opposition and Berbicians who have been complaining about the tolls.Built as a public/private partnership, the financing of the structure and how it ended up in the hands of a few private individuals with little say for Government, has seen the administration moving to increase its shares.December 02, 2015Toll reduction delayed as Berbice Bridge Company seeks legal adviceA December 1 date for the lowering of tolls for the Berbice Bridge has elapsed, with the company now saying that the matter is in lawyers’ hands. The situation will spell a continuing stalemate over the toll reduction announced by the new administration in its national budget presentation earlier this year.Lower tolls for the Berbice Bridge have been delayed as the company seeks legal adviceAccording to the Ministry of Public Infrastructure (MPI) yesterday,NFL Jerseys Supply, an agreement sent to the Berbice Bridge Company Incorporated (BBCI) is still being brokered.The ministry, in announcing the delay, explained that earlier this month it sent the draft agreement to BBCI for review. The agreement, in essence, says that the Government of Guyana will provide a $40M subvention to the bridge, in return for the reduction of tolls.In return, the bridge has to provide figures of vehicles traversing the structure.The ministry disclosed that another copy of the proposed agreement was sent to BBCI on Monday.“The Ministry has been informed that this document is currently engaging the attention of BBCI’s lawyers. Once MPI has received a favourable response from BBCI, the GY$40M allocated for subventions will be available for immediate release. The toll will also be immediately implemented once the agreement has been signed by BBCI,” a statement from the ministry said.The Ministry said that it had estimated that the toll reduction would be implemented by December 1.“Nonetheless, MPI is optimistic that an agreement can be reached shortly with BBCI.”The agreement caters for the toll for passenger cars and buses to be reduced from $2,200 to $1,900, a 13.6 percent decline, while other types of vehicles will be reduced by 10 percent.The toll reductions had been a campaign promise by the coalition and were outlined in Budget 2015. It was expected to be implemented from September 1, 2015, but was not because negotiations between the Government and BBCI remained deadlocked.BBCI had asked the government for some extension so that it could discuss the implications of the proposals with their stakeholders.In the interim, as the commuters awaited the reduced toll, the Government had implemented river taxis to ply the Rosignol to New Amsterdam route.Minister Patterson told reporters earlier this month that between September 21 and November 7, some 62,465 persons had used the boats. Of this, 11,623 were either students or the elderly.Government has said that its efforts to reduce the Berbice Bridge toll is part of a plan to alleviate the burden of the high fare for the over 150,000 Guyanese who live within Regions Five and Six that traverse the bridge to access education and health services, conduct business and travel on a daily basis.In total, the river taxis conducted over 2,800 trips across the river between September 21 and November 7.The bridge has been a sore issue for the former opposition and Berbicians who have been complaining about the tolls.Built as a public/private partnership, the financing of the structure and how it ended up in the hands of a few private individuals with little say for Government, has seen the new administration moving to increase its shares and reduce the tolls.The bridge’s management was controlled by New GPC, a company owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, a close friend of ex-President Bharrat Jagdeo.Government recently announced that it has moved to buy out the shares of Demerara Distillers Limited in the bridge company.The bridge was commissioned in 2008.Sunday December 06, 2015BBCI delay in lowering tolls unfortunate, disappointing- former AG-financial restructuring of company neededFormer Auditor General Anand Goolsarran is decrying the Berbice Bridge Company Inc.’s (BBCI) latest delay in lowering the bridge tolls, as the December 1 commitment the company initially made has come and gone.Former Auditor General Anand GoolsarranCiting the fact that Government has already committed to compensating the company for the loss in revenue and that a resolution had been passed in the National Assembly, Goolsarran noted that the company’s excuse of “seeking legal advice” is a disappointment.“I would say that it is rather disappointing, indeed unfortunate, that BBCI is taking so long to agree on the reduction in tolls,” Goolsarran said, in an invited comment on Friday. “Considering that, the Government has given a commitment to compensate the company for the loss in revenue and has set aside funds in the 2015 National Budget for this purpose,”“The National Assembly had (also) passed a resolution on May 15, 2014 calling for a reduction in the toll,” he added. “(And) what is more of a disappointment is that the National Insurance Scheme (NIS) is essentially a State institution but appeared to have little say at the level of the Board.”Goolsarran said that NIS owns $1.030 billion of the $1.350 billion equity of the company or 76 percent. He described it as unprecedented for any individual or entity to have such a massive stake in shares, but not have a major say in the decision-making of the company.“Like the aborted Amaila Falls Hydro Project and the Marriott Hotel, the company is highly geared with 83 percent debt versus 13 percent equity,” the analyst observed. “Interest charges have to be met, whether a profit is made or not. And then, the bonds have to be repaid.”“This is not so in the case of equity since dividends can only be paid out of profits and shareholders do not have to be repaid the money they have invested in the company.”The Berbice BridgeHe said that the fact that the Bridge Company is having financial difficulties is public knowledge. This, he said, stems from the fact that the financial structure of BBCI has been poorly thought out.However, Goolsarran observed that the Government still holds 76 percent of the shares and should Government use its shares to influence the company to reverse its debt to equity ratio, the BBCI could resolve its problems. The debt to equity ratio was incurred from direct construction.“There should be more equity than debt, perhaps a reversal of the current debt to equity ratio,” he said. “The Government should therefore use its 76 per cent shareholding by influencing the company to go this direction and provide whatever financial assistance it can to assist in the effort.”After Government announced that it was buying out shares in the BBCI late in October, the BBCI had agreed to lower the tolls by December 1st and take the $40M subsidy.The December 1 date, however, passed, with the company saying that the matter is in their lawyers’ hands. That announcement thus prolonged the stalemate.The Ministry of Public Infrastructure had revealed on that very day, that an agreement sent to the BBCI is still being brokered.The Ministry, in announcing the delay, explained that it had sent the draft agreement to BBCI for review. The agreement says that the Government of Guyana will provide a $40M subvention to the bridge, in return for the reduction of tolls.In return, the bridge has to provide figures of vehicles traversing the structure.The Ministry disclosed that another copy of the proposed agreement was sent to BBCI on December 30th.It is understood that this agreement is being perused by BBCI lawyers. The Ministry is reportedly awaiting a response from the BBCI, before the subventions are made available.The toll will also be implemented once the agreement is signed.The agreement caters for the toll for passenger cars and buses to be reduced from $2,200 to $1,900, a 13.6 percent decline, while other types of vehicles will be reduced by 10 percent.The toll reductions were an election campaign promise by the coalition and were outlined in Budget 2015. It had originally been projected for implementation by September first, 2015, but was not because of the imbroglio between the Government and BBCI.BBCI instead asked the government for some extension so that it could discuss the implications of the proposals with their stakeholders.In the interim, as the commuters awaited the reduced toll, the Government had implemented river taxis to ply the Rosignol to New Amsterdam route.The bridge, which was first commissioned in 2008, has been a sore issue for the former opposition and Berbicians who have been complaining about the tolls.Originally a public/private partnership, the company ending up in the hands of a few private individuals caused the administration to increase shares and move to reduce the tolls.The bridge’s management was controlled by New GPC, a company owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, a close friend of former President Bharrat Jagdeo.Government recently announced that it has moved buy out the shares of Demerara Distillers Limited in the bridge company.December 21, 2015Lower Berbice Bridge tolls from Jan. 1…as stalemate endsMore than four months after Government announced the lowering of tolls for the Berbice Bridge, and amidst a stalemate, it appears that finally a deal has been reached.The Berbice River Bridge Company is set to lower tolls from January 1.According to the Ministry of Public Infrastructure yesterday, Minister David Patterson has reached an agreement with the Berbice Bridge Company Incorporated (BBCI) and will be signing a contract with the company in the coming week.The agreement, which covers the provision of a Government subsidy to BBCI, will take effect from January 1, 2016, the ministry said in a statement.The lowering of the tolls was announced in August by Finance Minister Winston Jordan, during the new government’s presentation of its first national budget since taking office in May.The coalition, while campaigning for the elections, had promised to reduce tolls on the bridge which is partially owned by government.The effective date was supposed to be from September 1, 2015, with the tolls for passenger cars and buses proposed to be slashed from $2,200 to $1,900, a 13.6 percent decline. At the same time, the toll for all other types of vehicles was to be reduced by 10 percent.However, the bridge company resisted the move, seeking legal advice.A December 1 date elapsed with no agreement reached.Since November, the ministry had sent a draft proposal with the intentions to reach a December 1 deadline.The draft agreement, in essence, said that the Government of Guyana would provide a $40M subvention to the bridge, in return for the reduction of tolls. In return, the bridge had to provide figures of vehicles traversing the structure. BBCI had asked the government for some extension so that it could discuss the implications of the proposals with their stakeholders.In the interim, as the commuters awaited the reduced toll, the Government had implemented river taxis to ply the Rosignol to New Amsterdam route. Between September 21 and November 7, some 62,465 persons had used the boats. Of this, 11,623 were either students or the elderly.Government has said that its efforts to reduce the Berbice Bridge toll is part of a plan to alleviate the burden of the high fare for the over 150,000 Guyanese who live within Regions Five and Six that traverse the bridge to access education and health services, conduct business, and travel on a daily basis.In total, the river taxis conducted over 2,800 trips across the river between September 21 and November 7.The bridge has been a sore issue for the former opposition and Berbicians who have been complaining about the tolls.Built as a public/private partnership, the financing of the structure and how it ended up in the hands of a few private individuals with little say for Government, has seen the new administration moving to increase its shares and reduce the tolls.The bridge’s management was controlled by New GPC, a company owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, a close friend of ex-President Bharrat Jagdeo.Two of New GPC’s directors reportedly resigned during the standoff.Government recently announced that it has moved to buy out the shares of Demerara Distillers Limited in the bridge company.The bridge was commissioned in 2008.December 29, 2015Govt, Bridge Coy sign $31M subsidy agreementMinister of Public Infrastructure, Honourable David Patterson (right) hands over the agreement to Chairman of the Berbice Bridge Company Incorporated (BBCI), Egbert CarterThe Ministry of Public Infrastructure (MPI) and the Berbice Bridge Company Incorporated (BBCI), signed the agreement for the provision of a subsidy to the bridge company.Minister of Public Infrastructure, David Patterson and Minister within the Ministry of Public Infrastructure, Annette Ferguson represented the government. Chairman of BBCI, Mr. Egbert Carter, and BBCI Chief Executive Officer, Mr. Omadot Samaroo, represented the bridge company.Also present at the signing ceremony were Minister Patterson’s Advisor, Mr. Kenneth Jordan, and MPI’s Permanent Secretary, Mr. Balraj Balram.The signing covered the provision of a $31M subsidy to the bridge company.This subsidy will cover a toll reduction for passenger cars and minibuses, from $2,200 to $1,900 and for all other types of vehicles by 10 percent, excluding vessels.The agreement will take effect from January 1, while the subsidy will be disbursed before the end of 2015.Both Minister Patterson and Minister Ferguson are pleased that the agreement has finally been reached. The Ministers also said that the agreement is just an indication of the Government of Guyana’s commitment to providing a better life for the Guyanese public.May 06, 2016Berbice Bridge financial woes…NIS urged to play bigger role to protect $2.6B investments– structure built with US$40M, valued at US$30MA forensic audit report into the National Insurance Scheme (NIS) has urged the entity to consider playing aNIS Chairman, Dr. Surendra Persaudbigger role in the running of the Berbice Bridge if it wants to ensure returns on over $2.5B it invested.The bridge, commissioned in December 2008, is in deep financial trouble now, with claims that it has racked up $1.5B in accumulated losses based on the 2014 audited financial statements.The investment in the bridge has been riling taxpayers and the former Opposition, which now forms the coalition Government, as it was believed deliberately structured to allow close friends of the former administration to take control of the structure which links Demerara to East Berbice.NIS has the largest single block of money invested but via an equity arrangement New GPC and Ramroop Group, two companies linked to former President Bharrat Jagdeo, were able to take 40 percent control of the bridge company. Two directors representing Ramroop and his companies have since resigned.NIS had little say with the bridge’s operation despite its massive investments.The forensic auditor, HLB R. Seebarran & Co ., in its report wants all that changed now with the current ‘Concession Agreement’ restructured to allow NIS to have a more dominant role in view of its shareholdings.The forensic report would partially lift the veil of secrecy that would surround the bridge’s operations and the people behind the scenes.The report disclosed that the previous Board of Directors (BODs) had approved Maurice Solomon, a director, as its representative on the Berbice Bridge Company Inc. (BBCI) Board.“In addition, another director, Mr. Paul Cheong sat on the BBCI’s board, yet there was no report of the position they took in representing the scheme’s interest as evident from the minutes of the BODs overNIS General Manager, Doreen Nelsonthe last four years.”FINANCIAL WOESNIS is facing financial problems, too, as it is depending on the dividends from its investments to keep the scheme viable. However, since late 2014, BBCI had given notice to NIS that it will not be able to pay its dividends as enough traffic has not been crossing the Berbice River and there was barely money to pay overheads and its loan commitments.NIS has invested in a number of ways in BBCI- Corporate bonds – $1.060B; Subordinated Loan – $500M; which is a debt that ranks after other debts if a company falls into liquidation or bankruptcy); Preference Shares – $950M; Common Shares – $80M.The report warned that the ability of BBCI to pay interest and dividends and its capital repayment will depend on its ability to generate profits.With its losses of $1.5B, the investment in BBCI’s Common Shares may now be impaired as the current net worth of an ordinary share is ($2.77), based on its 2014 audited financial statements, the audit report said.It was found that BBCI signed a ‘Concession Agreement’ with the Government of Guyana for the design, construction, development, operations and maintenance the Berbice Bridge pursuant to the terms and conditions established within the agreement. The agreement is for a period of 21 years, unless terminated or extended by mutual agreement or in accordance with any other provisions within the agreement.“When the 2012 audit was finalized in May 2015, it became known to management that the company does not own a bridge but instead a licence to operate it.”NIS will have to seriously consider having a bigger say in the Berbice Bridge if it wants to protect the $2.6B it invested.The forensic auditor did not see a copy of the Concession Agreement for review.At December 31, 2014, BBCI owed shareholders $1.1B.The report said that the scheme’s investment in the BBCI’s is almost certain to be negatively affected by the current financial woes.“Already, the ordinary shares have been impaired to a negative value, the subordinate loans preference shares may also have been impaired. The company’s CEO has already written the scheme indicating its inability to pay the dividend on preference shares.”The report went further with regards to the risks of its investments in the Berbice Bridge.ANOTHER 21 YEARS“In the event that BBCI becomes insolvent because of its current loss making position, its issues with the Government regarding the lowering of the bridge toll, its inability to generate adequate cash flows to meet its obligations and the fact that the company does not own a bridge, then the investors’ investments will be at severe risk of not being recovered.”BBCI had even written NIS asking that the scheme consider reducing the interest rates of the investments – Bonds Tranche 1 from 9% per annum to 7.5% per annum (free of all taxes), Bonds Tranche 2 from 10% per annum to 7.5% per annum (free of all taxes), Subordinated Loan Stock from 11% to 7.5% per annum (tax free), and Preference Shares from 11% to 7.5% (tax free).However, the forensic audit report warned that if NIS management accepts this proposal, it stands to lose $611M over a 12-year period.Regarding the concession agreement, the audit firm said it understands that it will end in June 2027, at which time the company will be required to hand over the bridge to the Minister responsible.“Over the remaining years, the company must make ‘substantial’ profits, as emphasized by its auditors, during the remaining years to pay off all debt obligations and compensate its ordinary investors. Realizing this, the company is now seeking approval from the Government to extend the ‘Concession Agreement’ by another 21 years.”With the current situation at the Berbice Bridge, the new NIS Board will need to assess the risks and returns of investments, the report of the forensic auditor urged.“In addition, it needs to have proper representation on the BBCI’s board since it is the largest investor in the company. In our opinion, the scheme should have a minimum of two representatives on the board one of which should be the Chairman/Chairperson.”It was also recommended that the NIS board carry out their own investigation to determine the value of the bridge which was reported at $6.28B net or US$29.9M at December 31, 2014 in the audited financial statements.September 30, 2016NIS now chairs Berbice Bridge Company BoardThe Berbice Bridge Company’s board will now be chaired by Dr. Surendra Persaud who is the current chairman of the National Insurance Scheme board of directors.NIS Chairman,Dr. Surendra PersaudDr Persaud made this information known yesterday during the 47th anniversary celebrations of the National Insurance Scheme, at its Brickdam office. Persaud was at the time commenting on the financial status of the NIS.He said, “I am pleased to report that the National Insurance Scheme has appropriate representation today on the Berbice Bridge board.”He further said, “As the largest investor in the Berbice Bridge, we the National Insurance Scheme have appropriate membership, I actually am now the chairman of the Berbice Bridge Company.”According to the chairman, to say that what was promised to the investors in the bridge was lucrative would be an understatement. “What happened with the Berbice Bridge was that the monies that were given to them, were given with a promise of a rate of return that was not sustainable.”He said that at present the Bridge is in a position where it is unable to satisfy its debt. Persaud said that now the NIS is leading the bridge management through a restructuring process.An audit into the Berbice Bridge done by HLB R. Seebarran & Co. had recommended that NIS needs to have proper representation on the BBCI’s board since it is the largest investor in the company. In their opinion, the scheme should have a minimum of two representatives on the board -one of which should be the Chairman/Chairperson.Persaud said that hopefully during the first quarter of next year the NIS can begin to receive the funds from its investments.The NIS is the largest single investor in the bridge whereby it invested $2.6B. A forensic audit into the company showed that the entity had accumulated losses totalling $1.5B as of 2014.Despite being the biggest investor, the New GPC and Ramroop Group through an equity arrangement had 40 per cent control of the bridge company. These companies are said to be owned by close friends of former President Bharrat Jagdeo. Two Directors representing the Ramroop Group have since resigned.With the restructuring of the “Concessions Agreement” NIS is now allowed to have a more dominant role in the management of the company which is correspondent with its shareholdings. The auditors reported that this agreement should come to an end in June 2027, after which the company will be required to hand over the bridge to the Minister responsible.According to the report, the previous Board of Directors had made several appointments but no position was taken as to the representation of the scheme’s interest. This was evident in the minutes of the board meetings over the last four years.In 2014, BBCI informed NIS that it would be able to pay its dividends since enough traffic was not crossing the Berbice River and there was barely money available to pay overhead costs and loan commitments.The investment by NIS was done in different forms. As it relates to corporate bonds, $1.06B was invested; Subordinated Loan totalled $500M, which is a debt that ranks after other debts in the event that a company falls into liquidation. Additionally, preference shares were bought at a cost of $950M and common shares for $80M.The auditors had recommended that the NIS should seriously consider having a bigger say in the Berbice Bridge if it wants to protect its $2.6B investment.The report also said that with the current situation at the Berbice Bridge, the new NIS Board will need to assess the risks and returns of investments.It was also recommended that the NIS board carry out their own investigation to determine the value of the bridge which was reported at $6.28B net or US$29.9M at December 31, 2014 in the audited financial statements.Earlier this month it was reported by NIS that the Berbice Bridge Company had begun making payments to NIS on the subordinated Loan stock that was issued.October 12, 2016Govt. secures 10% more shares in Berbice Bridge…NIS is largest shareholderA sale agreement has been concluded between the Demerara Distillers Limited (DDL) and the government. The government is now in possession of the 40 million shares DDL once had in the Berbice Bridge Company Inc (BBCI).Kaieteur News understands that the transfer of shares, which was long in the making, was made final about a month ago. However, Government made no official announcement and there is no word on what was the price settled at. The company had an asking price of some $45M, but government was optimistic that, through negotiations, a more convenient price could have been arrived at.The additional shares acquired by government represent 10 per cent of the shares in BBCI.Last year, government announced that it wanted badly to “ease the pressures and burdens of the people who use the bridge.”Prime Minister Moses Nagamootoo told the media that government wanted to place itself in a better negotiating position, by attracting shares so that it could have a stronger voice in the governing body of this company.The Prime Minister said, “We are trying to ensure that our voice is not a feeble one and that the dominant partners in the Berbice Bridge would recognize that we are serious.”The Berbice River BridgeRecently, Public Infrastructure Minister David Patterson said government remained committed to providing significant financial relief for those persons traversing the Berbice Bridge and in order to guarantee low fares, government would have to gain majority control of the company.Government had also hoped to engage with the other stakeholders about selling their shares in order to influence the decision to reduce the bridge tolls since the Bridge Company was initially refusing to lower them.But after intense negotiations, government finally brokered an agreement with the company to reduce the tolls, which took effect this year.The toll on passenger cars and minibuses was reduced from $2,200 to $1,900, while there was a 10 per cent reduction for the other classes of vehicles.Government is also providing subsidies to the river taxis, which were introduced after the BBCI maintained that it was not reducing its tolls.The New Guyana Pharmaceutical Company (GPC) which is owned by Dr. Ranjisinghi ‘Bobby’ Ramroop, has 80M in share stock in the Berbice Bridge.The other principal investors in the bridge include the National Insurance Scheme with an initial 80M worth in shares, Secure International Finance Company with 80M shares, Hand in Hand Motor & Life Insurance Company which holds 40M shares and the Colonial Life Insurance Company with 80M shares. DDL’s 40M shares now belong to government.The remaining and overwhelming majority of shares held in the Berbice Bridge Company belongs to government through the National Industrial and Commercial Investment Limited (NICIL) and stands at $950M in preference shares. This has since been sold to NIS, bringing its share stake to in excess of one billion.______________________________________________Read also about:The Tale of Bharrat Jagdeo and his best friend Bobby RamroopThe Media & Telecommunication Heist of GuyanaThe Sanata Complex GiveawayThe Marriott Scheme |
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發表於 2017-4-22 17:31:14
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