August 10, 2011 issue

Guyana Focus

IMF's optimism a boost for the PPP

The recent positive outlook on Guyana by the International Monetary Fund (IMF) comes at an opportune time for the PPP/Civic government which is heading into general elections amidst criticisms of its performance.
In its 2010 review of the economy, the IMF Staff Report concluded that Guyana's future looks brighter in spite of the challenges it faces. It notes that following five years of consecutive economic growth, the country is beginning to lock in gains from recent years of fiscal consolidation. Put simply, fiscal consolidation refers to government policies aimed at reducing deficits and debt accumulation.

Ironically, contrary to the IMF's position, Guyana's domestic and external debt has been soaring out of control, putting the country at risk of once again falling into an interminable debt trap. At the end of 2010, the country's domestic debt surpassed the G$100 billion mark while its external debt once again crossed the psychological US$1 billion barrier (See Chart 1).
Despite commending the government for attempts at reducing debt accumulation, the IMF noted that Guyana faces moderate debt distress and should put contingency plans in place in the event of weakness in the public sector or shortfalls in aid projections.
The IMF also warned of potential risks to the economy, including global uncertainty; weak public enterprises, especially the sugar industry; delays in grant disbursements; and a widening external current account deficit. The international financial watchdog also cautioned that attention must be paid to balancing infrastructural needs with fiscal and debt sustainability.
Surprisingly, the IMF stated that Guyana's prospects for structural transformation hinge in part on its Low Carbon Development Strategy (LCDS) – a view that is not widely shared - noting that the country has become a magnet for environmental issues. The institution believes that over the medium term, the LCDS should help Guyana compete better on the global stage and unleash opportunities for lowering poverty.
Last year real Gross Domestic Product (GDP) expanded by around 3.4 percent, below the projected rate of 4.4%, but marginally greater than 3.3% in 2009. Growth was supported by expansion in the gold and services sectors, which helped offset lower output in the sugar sector.
Incidentally, sugar remains a major risk, with GUYSUCO remaining weak. The watchdog recognized that the expected return from major capital injection into GUYSUCO and efforts to revamp the sugar industry, have not yet materialized.
On the positive front, between 2007 and 2010, the economy grew by an average of almost 4% and is forecasted to grow by 4.8% in 2011 and 6% in 2012 (See Chart 2). The IMF is optimistic about the long-term prospects of the economy, projecting average growth at 4.9% for the 2011-15 period and 3.6% for the 2011-30 period.
End-year inflation rose to 4.4 percent, from 3.7 percent in 2009, reflecting higher food prices. However, the IMF forecasts stable inflation until 2015 in the range of 5.4% (see Chart 3).
The IMF recognized that there is a growing trend towards private sector participation in the exploitation of Guyana's natural resources, which incidentally is evident in the "gold rush" in the country. On the other hand, the public sector is concentrating primarily on large scale infrastructure projects such as the Amalia Falls Hydroelectric Project (AFHP), which was singled out as being potentially problematic.
Though potentially beneficial to Guyana, the risks associated with AFHP were emphasized. The IMF warned that while a strong consumer base and increased demand for electricity generated by the project may be feasible, weak administrative capacity, limited solvent demand and limited delivery infrastructure could prevent Guyana Power Limited to realize the full benefits of the project. As a result, profitability could be lower than expected, adversely affecting the overall fiscal balance.
More importantly, the IMF advised the government to diligently assess the details of the public-private sector partnership associated with the project to safeguard against sovereign risks in such a large project which is equivalent to 30% of GDP.
Another area of risk identified relates to the solvency of the National Insurance Scheme (NIS). Evidently, projections show that after 2011, the NIS will shift from a small surplus to a growing deficit, mainly as a result of rising benefit payments. As well, contribution arrears and evasion by both workers and employers add to the problems of the NIS. The situation is worsened by its large investment in the failed CLICO, which is guaranteed by the government that has effectively taken on the risk.
According to the IMF, during 2010 structural reforms focused on improving the policy framework and supporting long term growth. In the area of fiscal policy, efforts to improve the Guyana Revenue Authority (GRA) continued apace. In support of long-term growth, the government continued modernization in the sugar industry. In the financial sector, the authorities passed the Credit Bureau Act and widened the regulatory perimeter of the Bank of Guyana. On the infrastructure front, work commenced on the refurbishment and upgrading of the electricity transmission and distribution network and the access road to the AFHP.
In spite of the weaknesses identified, the IMF remained optimistic about Guyana's future potential and commended the government for its strong fiscal policies. In order to counteract its shortcomings, the government agreed that it might be necessary to restrain the pace of spending growth.

 

New Anamayah Memorial Hospital at Hampshire, Corentyne

Georgetown — A private, state-of-the-art, multi-million dollar hospital was commissioned two Saturdays ago at Hampshire, Corentyne, marking a new era in the delivery of health care in the region.
The Anamayah Memorial Hospital, which was completed in March this year, was established by the family of the late Attorney-at-law Joseph Anamayah, in his memory. Anamayah, a prominent Berbice lawyer and Commissioner of Oaths to Affidavits, of Hampshire Village Corentyne, died at his home in April, 2010 after a prolonged illness, at the age of 68.
Prime Minister Hinds, in delivering a message at the opening ceremony, congratulated the Anamayah family for making a dream of their foreparents a reality. He challenged those present to aim for similar achievements.

 

Canadian company finds possible gold-bearing quartz vein in Puruni

Georgetown — Canadian Gold mining company, Otish Energy Inc., operating in Guyana, announced last week that rock samples assay results from its wholly owned Puruni Gold Project in the Mazaruni Mining District No. 3, has shown a possible gold-bearing quartz vein structure.
"These sample results and the recent induced polarization results suggest the possibility of a gold-bearing quartz vein structure. Drilling is required to confirm the existence of this structure", states Martin Zambrano, Senior Geologist with the company.
According to a company press release, sample PRX-01 returned 1940.0 grams per tonne gold (gpt Au) or 56.8 ounces per ton gold (opt Au). Sample PRX-02 returned 503.8 gpt Au (14.71 opt Au). Sample PRX-03 returned 791.3 gpt Au (23.28 opt Au).
The samples are selective grabs taken from quartz boulders recently excavated from Zone A on the Puruni Property.
Zone A is marked by a strong induced polarization anomaly and a coincident gold-in-soil geochemical anomaly.

 

Guyana to be featured in 'ATWFF' online reality series

Georgetown — 'Destination Guyana' is being featured in a reality series called 'Around the World for Free' (ATWFF), an online/broadcast hybrid reality series based on the concept of whether a person can circle the globe without any money. The show follows a reality star as the star attempts to travel around the world without any money on hand.
The show is being hosted by Parvati Shallow, three-time contestant of the reality television (TV) show 'Survivor' for Season Three going on a 100-day journey which commenced on July 7, 2011. She has visited four countries so far including the United States, Haiti, Dominican Republic and Barbados.
Shallow is the winner of the reality TV series Survivor: Micronesia and had previously competed in Survivor: Cook Islands where she placed sixth and later was the runner-up in Survivor: Heroes vs. Villains.
The team, which includes Executive Producer, Alex Boylan who is a reality TV contestant, TV show host and producer, and Zsolt Luka, cameraman and Creative Director, will spend some seven days in Guyana exploring the country's pristine natural beauty and experience its diverse culture. They will visit places like Arrowpoint Resort, Kaieteur, Iwokrama, Surama and Lethem.
Minister of Tourism, Industry and Commerce, Manniram Prashad recently met with Shallow and Boylan at his Georgetown office. He said that the Ministry of Tourism will assist in coordinating her stay in Guyana.

 

AFC supports Broadcasting Bill, opposition PNC walks out
Georgetown — The Alliance For Change (AFC) lent its support to the government in the passing of the long awaited Broadcasting Bill in the National Assembly on July 28, 2011 but the main opposition party, the People's National Congress Reform (PNCR) withheld its support and staged a walk out.
Presidential Candidate of the AFC, Khemraj Ramjattan, in supporting the bill, said that "without a Broadcasting Bill we can't move forward because half a loaf, or three quarters of a loaf, is better than none." He, however, questioned government's move in tabling of the Bill at "this, the eleventh hour".
He noted that more than 95 percent of the current Broadcasting Legislation comes from a Bill that he had tabled back in 2008.
Prior to leading the walk out of his party's representatives, leader of the opposition, Robert Corbin said his party could not support the legislation as the Bill "contravenes every tenet of consultation" adding that it violates the spirit of a joint committee set up by President Jagdeo and the late Desmond Hoyte, then leader of the opposition, as well as a later agreement signed between President Jagdeo and Corbin himself.
Corbin stated that apart from its drastic variations from the agreed upon terms, the Bill "is a travesty of justice and a violation of all the rights of citizens."
 
CRIME WATCH
Overseas visitor shot, robbed

Georgetown — Prem Persaud, 28, a visitor from the United States, was shot in the neck and robbed upon his arrival at his Middle Road La Penitence destination in Guyana. His cousin Sathrohan Persaud, was also shot in the leg during the brazen assault by two gunmen who attacked them just as they arrived from the Cheddi Jagan International Airport at the La Penitence home of a relative at around 5:00 am last Sunday.
Prem Persaud and his fiancé came to Guyana for a religious function in memory of his mother who died a year ago. His cousin Sathrohan and his aunt, Rowtie Singh, were the other occupants in the vehicle that brought them from the airport.
Rowtie Singh told Kaieteur News (KN) that she and her overseas based nephew came out of the vehicle as it pulled into the driveway, to open the gate, when two men came running towards them, ordering them not to move. She said she then heard shots being fired and then the bandits grabbed two bags and fled the area.
The two injured men were rushed to a city hospital where they were treated immediately.

 

Father, son on murder charge

Georgetown — Sankar Khrishna, 47, a cattle and rice farmer of Alness and Letter Kenny, Corentyne, and his son Rommel Krishna, 21, a farmer of 69 Alness Corentyne Berbice were remanded to prison when they appeared before Magistrate Khrisendat Persaud two Tuesdays ago on a joint charge of murdering Shawn Fraser, 38, and attempted murder of his brother, Odwin Bindah on Wednesday July 27, at Hogstye Back dam, Corentyne Berbice.
The men were not required to plead and will have to return to court on August 22.
Fraser and Bindah, cattle and rice farmers, were allegedly attacked by three men all armed with long guns around 5:00 am last Wednesday as the men were preparing their rice field for cultivation. Fraser died on the spot after he was shot at close range by the three men while Odwin was injured in the shooting and rushed to the New Amsterdam Hospital where his condition is regarded as critical.
The shooting took place on an abandoned plot of land which the attackers previously used to keep their animals and which was subsequently loaned to the two victims to cultivate. This appartently led to the dispute that culminated in the shooting.
The third suspected gunman, Jetu Selall, 21, a labourer of Alness was found dead at around 4:00 pm two Mondays ago at Alness back dam with bullet wounds to the left side and a gun nearby. His body was discovered under a Tamarind tree about half mile in the back dam at Alness village.

 

Robbed after visit to bank

Georgetown — Dharmendra Harpashad, a West Bank Demerara taxi driver, who was relieved of $1.5M mere minutes after he had left the Vreed-en-Hoop branch of a leading local bank last Monday, is convinced that a bank security guard had a role in the robbery.
Harpashad had just withdrawn the cash from the bank and placed it in his car which was parked in the bank's compound. He then drove to the nearby Vreed-en-Hoop Stelling but on arriving there, he observed that his rear left wheel was flat. While attending to the wheel someone walked up to his car and snatched the bag with the cash, his bank card and other documents and ran away.
Harpashad feels the guard whom he had noticed acting suspiciously in the bank identified him and his car to the thief.
Meanwhile in another robbery, five men, one of whom had a firearm, broke into the Ithaca, West Bank Berbice home of contractor, Jermaine Benjamin, last Wednesday and escaped with more than GUY$2M in cash and jewellery. Benjamin was at home when the men broke into the building and held him at gunpoint.

 

Woman killed by car driver

Georgetown — 36-year-old Lakeram Prasad of Annandale who allegedly drove his motor car while being under the influence of alcohol leading to the death of a 37-year-old woman was granted bail when he appeared before Magistrate Hazel Octive-Hamilton last Thursday.
On July 21 last at High Street, Kingston, Lakeram Prasad drove his motor vehicle in a manner dangerous to the public and caused the death of Rozena Razack, a Call Centre employee. He was found to have 105 micrograms of alcohol in his system at the time. He was granted bail to the tune of $750,000 on the charge of causing death by dangerous driving and $30,000 for the offence of driving under the influence.

 

Holidayer violently robbed

Georgetown — Hetram Sohan, an overseas-based Guyanese, was violently robbed of a gold chain worth $100,000 and $15,000 in local currency on July 31, 2011 on the Corentyne public road.
His attackers, Vibert Moore, 39, of Hampshire Squatting Area, Corentyne, and Dexroy Melville, 21, of the same address were on Wednesday last remanded to prison by Magistrate Fabayo Azore, when they appeared before her at the Reliance Magistrate's Court in East Canje, charged with robbery with violence.
According to reports Sohan, who was home on holiday, went out to a popular night club with some friends. On his way home he was accosted by the two men who brutalized and robbed him of his chain and money, before making good their escape.
Moore who was recently released on bail has a number of matters in the courts including robbery and escaping from lawful custody

 

Business, customers, baby robbed

Georgetown — An armed bandit took off two gold bangles from a nine-month old baby girl as she lay sleeping, while his armed colleagues ransacked the Goed Fortuin business place and home of the baby's parents last Saturday evening removing digital cameras, cell phones and gold jewellery. The men left in a white minibus.
According to a police statement, the incident occurred at around 7:30 pm when businessman Peter Sahadeo, 42, and his wife Nanda Sahadeo were beaten by four of nine gunmen who invaded their premises and escaped with in excess of $1M, six cellular phones and a quantity of gold jewellery.
The businessman said that his wife and a son were in the store when four men posing as customers walked in followed by five more men who took up strategic positions. Peter Sahadeo added that four of the bandits pulled out guns, jumped over the counter and held him and his son up, while the others ordered the customers to lie on the floor and took away the customers' cell phones, money and jewellery.

 

Man struck fatally on head

Georgetown — Ramjit Dindial, 35, of Lusignan North was pronounced dead at the Georgetown Public Hospital while receiving medical attention after he was allegedly struck behind his head by another man two Tuesdays ago in Lusignan.
Police stated that around 10:00 pm on the day in question Dindial was walking along the roadway at Lusignan when he was allegedly hit. The suspect has been arrested and is in police custody assisting with the investigations.
Residents claimed that Dindial was under the influence of alcohol and was on his way to purchase Chinese food when he was attacked.

 

GDF officer charged in US

Georgetown — Marvin Douglas, a Guyanese Lieutenant with the GDF has been placed on US$50,000 bail after he was charged with sodomy and child molestation in the United States. Douglas was pursuing a military course in Missouri, USA.
Douglas was among several ranks who were sent aboard over two months ago for training.

 

< Opinions
Community Connection >