NICIL should have appealed Guyana Sto
– PPP
The People’s Progressive Party (PPP) says state holding company NICIL should have appealed a Guyana Court of Appeal decision on the share dilution by Guyana Stockfeeds Limited (GSL) in 2000 to the Caribbean Court of Justice.
It also accused Robert Badal, the Chief Executive Officer of GSL of involvement in practices which were detrimental to minority shareholders and the state but beneficial to him and the companies he was affiliated with.
In a press release, the PPP also took aim at Badal’s close relationship with the Alliance for Change (AFC) which is part of the governing coalition.
The release earlier this month was a follow up to PPP General Secretary Bharrat Jagdeo’s comments about GSL shareholding held by National Industrial and Commercial Investments Limited (NICIL) and Badal’s response which was published subsequently in the Kaieteur News.
Stabroek News made numerous efforts to contact Badal who is also the owner of the Pegasus Hotel, for comment on the PPP claims but was unsuccessful.
According to the release, Badal in the newspaper article spoke to the status of the court matter brought by NICIL against GSL on its 2000 Rights Issue and the 2008 decision of Justice Jainarine Singh which rendered the 2000 Rights Issue (and subsequent bonus issue) illegal, null and void.
The 2008 High Court decision returned NICIL shareholding to 38% from the diluted 7%. The release added that Badal in the newspaper article “contemptuously” argued that the High Court decision was tainted and influenced by the PPP administration and that the Appeal Court decision of 2017 validated the reduction of the NICIL shareholding from 38% before the Rights Issue and Bonus Issue to 7%.
In trying to set the record straight, the party explained that in September, 2008, Justice Singh issued a decision that Badal’s Rights Issue and Bonus Issue, diluting NICIL from 38% to 7% was, illegal, null, and void.
The PPP pointed out that in late 2008, Badal, instead of honouring the High Court decision and restoring NICIL to its former 38% shareholding, appealed and obtained a “stay of execution of Justice Singh’s ruling.
“The matter languished in (the) Court of Appeal until 2017, some 10 years later when the matter came on for hearing, with the Court of Appeal ruling in Mr. Badal’s favour”, the release said, while adding that at the time of the hearing of the appeal, NICIL was under the control of APNU+AFC Government.
According to the release, it is not clear if NICIL, under APNU+AFC control, defended the case properly or at all but after the High Court ruling was overturned by the Appeal Court, NICIL chose not to appeal the matter to the CCJ. As a result NICIL’s shareholding was left at 7%.
“It is a well-known fact that Mr Badal was a significant supporter of the AFC and coalition Government. He campaigned for the AFC. He financially supported the AFC. He took out full page ads in support of AFC and the APNU+AFC coalition. He spoke at rallies under the APNU+AFC banner. One therefore questions whether