Minister of Legal Affairs and Attorney General, Anil Nandlall has revealed that the Government of Guyana has now gone to the International Chamber of Commerce (ICC), a French Arbitration Court in France to attempt to recover over GYD$1.1B owed by Panama over a 2018 and 2019 rice supply deal.
During his “Issues in the News” programme last evening, Nandlall sought to provide reassurance that the government is actively trying to recover the large sum of monies which are owed to local rice farmers who have been waiting for their payments since the last administration. While referring to the now opposition’s lackadaisical approach to the issue, Nandlall said, “Monies have to be expended to retain international lawyers to prosecute and defend these claims. And these are the people who are running around this country and accusing our government of being antinational and unpatriotic and that this their legacy.”
In 2018, a contract was inked between the David Granger administration and the Government of Panama for the supply of 200,000 quintals, equivalent to 9,075 tonnes of white rice between August 1, 2018, and November 7, 2018, with the Guyana Rice Development Board (GRDB) being the facilitator. Following the signing of the government-to-government agreement, the shipment was sent and a partial payment was made. It was also revealed by the Agriculture Minister, Zulfikar Mustapha last year, that another deal was struck in 2019, however, no payments were received under that contract. Panama has been acknowledging its arrears, however, efforts to recover the outstanding balance have been futile.
While noting that his government has been working assiduously to recover the funds, Nandall said, “US$7.1M along with interest, they left abandoned in Panama. Our government now has to shoulder the responsibility and take the necessary legal recourse to recover these monies on behalf of our rice farmers”.
Since taking office, the Irfaan Ali government would have already written to Panamanian authorities, and sought diplomatic assistance through the Ministry of Foreign Affairs, in hopes of having the North American nation honour its commitment. GRDB has also received heightened pressure from millers and farmers to clear the outstanding balance. However, being a mere facilitator, there is not much that can be done.
In addition, it was reported last year that two Essequibo rice millers sought the assistance of the court to obtain payment of $63,807,036, which they said had been outstanding for nearly four years, at the time. It was also revealed that due to the lack of payments, GRDB developed a liability of $4.7 million which had adverse effects on its revenue stream.
