The State Asset Recovery Agency (SARA) has filed proceedings in the High Court seeking Civil Recovery Orders against Queens Atlantic Investment Inc. (QAII) and the Guyana Bank for Trade and Industry (GBTI). In a statement to the press, SARA explained that it wants to recover $2.7B and $274M respectively, including interest as it believes that the two entities acquired properties in a manner not in keeping with the laws of the land, thereby leading to significant loss of revenue for the State.
SARA noted that QAII was leasing the Sanata complex and entered negotiations for its purchase. It further stated in court documents that Cabinet approved a formula for the terms of the sale that required a US$27M investment over three years and a sum of money reflecting a valuation of the property. SARA said that NICIL however, had concluded the sale based on a formula suggested by the purchaser, resulting in an investment of just US$21M being accepted and QAII paying some $344.5M less than would have been payable further to the formula approved by Cabinet.
With respect to GBTI, SARA said that the financial institution had submitted only the fourth highest of 14 bids in a tendering process, but was still awarded the right to purchase the property that is now its headquarters. It acquired the property for $224M less than the valuation of the property at that time, SARA said.
Considering the significant loss of revenue to the state, SARA is now proceeding with civil recovery measures.
