Further clarification is needed over Queens Atlantic agreements
Posted By Staff On August 9, 2008 @ 5:04 am In Letters | No Comments
The government has taken a first step towards cleaning up the administrative mess it created when it entered into a MOU and incentive agreements with Queens Atlantic Investments Inc.
There is still however a great deal of regularizing to be done. Firstly, the government needs to clarify just what are the financial terms governing the lease arrangement. Originally, the public was told that it was for $50M per year with an option to buy for $750M. Later, it was unearthed that there was a document suggesting that the rental would be waived for the first five years. The public has a right to be informed just what are the agreed terms.
Secondly, the government needs to confirm whether it agreed to give or even gave concessions to unregistered companies. There have been some suggestions within the media that some of the companies in respect to which investment concessions have been granted have not yet been registered. If this is so then there is a great deal of explaining to be done. If, on the other hand, the companies are duly registered, the government needs to confirm this fact.
Thirdly, it should indicate just what is the relationship between the New Guyana Pharmaceutical Corporation and the new investments. If in respect to the pharmaceutical plant, the NGPC is a partner, then it will call into question whether we are dealing with a new investment or simply an expansion or consolidation of an existing one. This has implications for the interpretation of the tax holidays.
Fourthly, the government needs to inform the public as to how, if at all, it disposed of its minority shares in the NGPC.
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