NICIL sets record straight on BK Inc matter.

DPI, Guyana, Thursday, April 2, 2020.

The National Industrial Commercial and  Investment Limited (NICIL) has cleared the air on what it said has been the “absurd and crass speculation gleefully peddled” by the three local newspapers today.

Reports in today’s editions of the Stabroek News, Guyana Times and Kaieteur News regarding the sale of Mudlots 1 and 2, Cummingsburg, Georgetown; Lot ‘F’, a portion of Mudlot 3 three; and Lots A’, ‘B’ and ‘D’ portions of North Cummingsburg, Georgetown to BK  International Incorporated, described it as an illegal act.

However, as laid out by the NICIL the very agreement was signed by the entity’s former head Winston Brassington and BK Incorporated and witnessed by Marcia Nadir Sharma.

In a release issued this evening, NICIL said it  became the owner of Mudlots 1 and 2, Cummingsburg, Georgetown via Transport No. 530 of 1947; Lot ‘F’, a portion of Mudlot 3 three; and Lots ‘A’, ‘B’ and ‘D’ portions of North Cummingsburg, Georgetown through Vesting  Order No. 43 of 2003 and 42 of 2003.

On December 4, 2006, a lease agreement  was entered into between itself and BK Incorporated for 20 years with an option to purchase anytime during the lease period. The purchase price was set at one hundred and ten million Guyana dollars.

The option to purchase, NICIL explained, was reliant on the Lessee obtaining approval from the Mayor and City Council for  its intended construction works.

On November 19, 2009, BK  Incorporated exercised its option to  purchase  and ceased paying rent.

NICIL rejected the offer to purchase.

By June 2013, NICIL began legal proceedings against BK Incorporated to recover  the outstanding rent and the accrued interest.

This matter, the entity highlighted, engaged the attention of the Court from 2013 to 2017.

It said sometime during 2017, BK Incorporated submitted an amended offer. In August of the same year, the matter was set down by the court pending settlement.

In October 2017, NICIL made a counter-offer to BK Incorporated that included the original purchase price, all outstanding rent, and 50 percent of the accrued interest. BK Incorporated accepted the counter-offer.
In November 2017, NICIL submitted to Cabinet, a request for approval for transfer by sale. However, an objection was raised by the Ministry of Public Infrastructure on behalf of the Transport and Harbours Department.  Consequently, Cabinet’s approval was deferred.

In October 2019, NICIL said it received approval, following which the Vesting Order was prepared, signed and gazetted.

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