Guyana Focus
Set against a backdrop of positive macro-economic developments, Guyana’s $161.4 billion 2011 budget is 13.1 percent greater than last year’s. Evidently, it is an election-year budget that makes key 5-year comparisons to 2006, the previous election year. Moreover, it is tax-friendly to both individuals and corporations and paints a positive outlook for 2011 – factors which are important in satiating the masses.
The budget, which is appropriately themed, “Together building tomorrow’s Guyana today” takes pain in separating sugar, the country’s largest and perhaps most sensitive industry, from growth forecasts, just in case sugar disappoints in 2011, as it did last year when it was supposed to lead economic growth.
In his budget presentation, Minister of Finance, Ashni Singh stated that the size of the country’s economy is currently at its largest ever. Last year it grew by 3.6 percent, marking its fifth consecutive year of growth. Without taking into account the poor-performing sugar sector which declined by 5.5 percent over the previous year, the economy expanded by 4.3 percent in 2010.
In 2011, the economy is forecast to grow by 4.6 percent, with sugar once again projected to make a significant contribution. Sugar production is targeted at 298,879 tonnes, 35.3 percent above the 2010 level of production. Without sugar, the economy is projected to grow by 2.8 percent.
Inflation is targeted at 4.4 percent in 2011, down marginally from 4.5% in 2010. While declining interest rates is expected to contribute to lower inflation, through lower borrowing costs, it will be a challenge to maintain the target rate in the wake of potentially higher food prices.
Whether sugar could surprise on the upside is difficult to predict, given the possibility of labour troubles and mechanical problems at the modernized Skeldon sugar facility. What is important to note is that the industry is not dead as was recently inferred by President Jagdeo; and that talks about producing 500,000 tonnes of sugar annually are merely a pipe dream in the near term. On a positive note, the Enmore sugar packaging plant is expected to become operational in 2011, enhancing modernization efforts in the sector.
Positive economic growth in 2010 was driven by strong performance in a number of sectors. Rice outperformed expectations with a production of 360,996 tonnes, representing the second highest output ever. This year, production is expected to increase further, with a target of 379,628 tonnes.
The gold sector also performed well, with declarations increasing by 2.9 percent to 308,438 ounces. This sector has been a beneficiary of higher foreign investments which are expected to significantly increase production in the future.
The engineering and construction industry grew by 10.8 percent in 2010 and is targeted to grow by 4.5 percent this year; while the information and communications sector grew by 7 percent and forecasted to grow by 5 percent in 2011.
Strong exports led to a balance of payments surplus of US$90.1 million, allowing the Bank of Guyana to increase its external reserves to US$780 million, compared to US$277 million in the previous election year. Export earning actually grew by 16 percent last year to US$892 million as a result of higher volumes and prices for commodities.
Guyana also benefited from a sharp boost in foreign direct investments, which increased by 21 percent to US$198 million, across a range of sectors. This is indicative of a positive economic climate, in spite of claims to the contrary by opposition forces who should know better.
Perhaps, the highlight of the budget was increased tax benefits for individuals and corporations; and higher pension and social assistance payments.
For the 2011 taxation year, the income tax threshold for individuals will be increased from $420,000 to $480,000, allowing Guyanese an additional $5,000 per month in tax-free income.
Effective February 1, 2011, old age pensions will be increased to $7,500 monthly, up from $6,600, representing a 14 percent increase. Public assistance, on the other hand will rise from $4,900 per month to $5,500.
For companies, the tax rate for commercial corporations, excluding telephone companies, will be reduced to 40 percent from 45 percent. Non-commercial corporations will also see a 5 percent reduction, from 35 to 30 percent.
Tax breaks come on the back of higher revenue collection in 2010. Collection of the value added and excise taxes rose by 8 percent; individual income tax by 16 percent; corporate taxes by 18 percent; and withholding taxes by 17 percent.
Education, followed by public security and safety received the highest allocations, totaling G$24.3 and G$15.9 billion, respectively. Projects related to implementation of the country’s Low Carbon Development Strategy come next with an allocation of G$14.4 billion, followed by healthcare at $14 billion. (See Chart for more allocations).
Incidentally, Guyana received its first tranche of funds of approximately US$30 million from Norway under the LCDS in 2010 and anticipates receiving another US$40 million this year, which will be used to fund LCDS projects.
The government plans to accelerate its diversification and modernization program in the agriculture sector and will set up funding facilities to facilitate improvements in farming systems and processing activities.
Evidently, in many ways the 2011 budget seeks to reach the grassroot population, including youth, women and single parents, the elderly, the homeless and other vulnerable sectors. As well, it will have a positive impact on the wallets of individuals and the balance sheets of corporations. What more do you need in an election year?
Georgetown — Guyana’s request for the Inter American Development Bank (IDB) to perform the services as delivery partner for Guyana’s participation in the Forest Carbon Partnership Facility (FCPF) has been approved by the World Bank.
This request for piloting the Multiple Delivery Partners’ Initiative for the coordination of the FCPF framework, and guidelines for the Formulation and the Readiness Grants, was in keeping with Resolution PC 7/2010/4 of the seventh Participants Committee meeting of the FCPF held in Washington D.C. The focal point of Guyana’s participation is the Guyana Forestry Commission.
The in-country resources of the IDB office will support the range of technical and administrative requirements for Guyana’s FCPF implementation. With the IDB as the Delivery Partner for the Guyana REDD+ Investment Fund, there will be opportunities for synergies in technical and administrative oversight, as well as implementation.
As part of this process, several preparatory steps led by the Facility Management Team of the FCPF are currently being executed, including discussion on approaches to activity implementation on matters relating to safeguards, logistical details and other relevant issues.
Minister Robert Persaud, whose portfolio includes Forestry, met with Senior Natural Resources Specialist, Eirivelthon Lima, of IDB Washington, last Wednesday to advance discussions on the FCPF. Representatives of IDB Washington are currently in Guyana for discussions on Guyana’s Readiness Preparation proposal and other related projects.
Guyana, which has already done extensive work in the area of its Readiness Preparation Proposal for the FCPF, will continue this work with the IDB and Minister Persaud has called on the IDB to ensure timely and effective implementation of the FCPF.
The FCPF is a window under the World Bank to enable countries to be prepared to access financing under this and other forest carbon financing mechanism. It came about as a result of the international debate and dialogue on climate change. The first step under the process was the preparation and submission of a Readiness Plan Idea Note (RPIN) and Guyana’s RPIN was approved since June 2008.
Guyana then proceeded with the next phase, the Readiness Preparation Plan (RPP) and was one of the first countries to submit and get approval for its RPP. Several revisions were done to the RPP to incorporate stakeholder’s comments.
The Readiness Preparation Plan was subsequently changed to Readiness Preparation Proposal which underwent further multiple revisions.
Preparation activities under this process are geared towards sustainable forest management, conservation and enhancement of forest carbon stocks.
Georgetown — Canada based oil production and exploration company, CANACOL Energy Ltd, which also has oil production and exploration operations in Colombia and Brazil, will be spending US$11M on two wells to explore for oil in the Takutu Basin, Region Nine (Upper Takutu/Upper Essequibo) as part of its capital programme for 2011 for Guyana.
The first well to be drilled is the Apoteri K-2, at Karanambo, where the planned spud (initial penetration of the ground) was done just over a week ago. However, continued drilling was hampered due to the lack of some specialized equipment. It is expected that drilling would resume shortly as the equipment have been ordered and should be arriving within a week.
According to the Guyana Chronicle (GC) the K-2 will be sunk to a measured depth of approximately 11,000 feet. It will be targeting the same productive reservoirs that had estimated a yield of over 400 barrels of light oil per day from the Karanambo Number One well, drilled back in 1982 and located just 600 metres away. Home Oil, had, in 1982, discovered high quality crude oil in the fractured Lower Jurassic Apoteri volcanic and Manari sedimentary reservoirs in the Karanambo Number one and this, it was felt, was proof that the rift basin had an active petroleum system and that commercial oil could exist in the basin, GC noted.
Canacol now owns 90 per cent in the contract having bought 55 per cent interest in the Takutu Block in May 2008 and then another 35 per cent in May 2009. The remaining 10 per cent is owned by Groundstar Resources Limited, the operator of the Petroleum Prospecting Licence (PPL).
Under the terms of the agreement between Canacol and Groundstar, the former will execute the works after the drilling of the K-2 and, therefore, will operate the second well. Another Canada based company, Sagres Energy Inc., an international oil and gas exploration company, is eligible to earn a 25 per cent working interest in the PPL from Canacol, by paying 30 per cent of the cost to drill K-2, GC reported.
The second exploration well on the Takutu Block is targeted to be drilled by May, 2011 and the partners are formulating plans to drill either the Rewa or Pirara River prospects, depending on the results from K-2.
In its December 2009 report to Canacol, Gaffney Cline and Associates (GCA), an international advisory firm which provides technical and managerial services and independent advice to all sectors of the oil and gas industry, had attributed recoverable prospective resources of 171 million barrels (111 million barrels net) and 133 million barrels (86 million barrels net) to each of the two wells.
However, it was explained that prospective resources are those quantities of petroleum estimated, as of a given date, to be, potentially, recoverable from undiscovered accumulations by application of future development projects.
Prospective resources have both an associated chance of discovery and a chance of development.
Georgetown — Guyana has decided to "formally recognize the State of Palestine as a free, independent, and sovereign state, based on its 1967 borders," stated the Ministry of Foreign Affairs. The statement added, "This decision is in keeping with Guyana’s long standing and unwavering solidarity with, and commitment to, the just and legitimate aspirations of the people of Palestine for the exercise of their right to self determination and to achieve a homeland of their own, independent, free, prosperous and at peace."
In doing so last Thursday, Guyana became the sixth South American nation to recognize Palestine as a country. The other countries within the Union of South American Nations (UNASUR that have recognized Palestine as an independent state are Brazil, Argentina, Bolivia, Uruguay and Ecuador. Brazil began the trend on December 3. Norway became the first member of the European Union to have done so also.
Guyana took the courageous decision despite the United States being reportedly lukewarm to the growing trend around the world and Palestine being engaged in conflict with Israel.
U.S. Undersecretary of State for Political Affairs William Burns has called the Argentine and Brazilian decisions "premature."
"It is Guyana’s hope that the increasing recognition of the State of Palestine will contribute to a resolution of the Israeli-Palestinian conflict and the creation of lasting peace and stability in the region," said the Foreign Ministry
Georgetown — Bharrat Dindyal, Chief Executive Officer (CEO) of the Guyana Power and Light (GPL) Incorporated, has defended his company’s decision not to accept the proposal from Florida-based Power and Energy Works (PEW) which was quoted at the cost of US$3M less than what the company is contracting from Wartsila.
At a press conference held at the company’s Kingston office, last week Tuesday, Dindyal said that the contention arose from an unsolicited proposal received from Bakshi of PEW. He refuted statements made in a letter written by one Tony Vieira in the January 7, 2011 issue of the Kaieteur News, as it relates to the proposed expansion of the Kingston Power Plant.
Dindyal pointed out that PEW was not offering a power plant but rather some equipment required for the assembling of a power plant. He said, “Since 1992, when Wartsila was contracted to supply an 11 megawatt power supply at Garden of Eden, we have always had a “turn-key proposal” and a “turn-key scope” with the company.”
Dindyal added that for US$18M, Wartsila is providing almost all of the various components required in the building of a power plant, with the exception of the foundation work.
“At the extension of the new plant, Wartsila is offering nine of the 15 medium voltage circuit breakers which are not included in Bakshi’s proposal, each of the breakers worth approximately US$70,000,” Dindyal noted.
Additionally, the generator output that Bakshi is offering is for 6.6 Kilovolt and therefore a step-up transformer has to be used for each machine. Dindyal explained that the use of these transformers will lead to GPL incurring a loss of US$458,000 per annum.
He also clarified that Wartsila has a worldwide sales organisation and does not use agents, thereby reducing the claim made in Vieira’s letter that Bakshi is a Wartsila agent, as mere speculation.
GPL had circulated a press release in which it stated, “the equipment that Bakshi is offering falls short of the required complement to complete a power plant for commercial operation. When one factors in the missing equipment, and the time to complete the plant, the offer is not only expensive, but would also be impossible to complete within the stipulated 14 months.”
The 7.8 Megawatt engines that GPL is acquiring from Wartsila have a higher fuel efficiency, which equates to US$1, 242,000 in fuel savings annually.
Dindyal disclosed that having responded to Bakshi’s offer on January 7, he has indicated his willingness to reduce the price of the equipment to US$11.98M. However, he added, considering the benefits, the larger Wartsila units present a far more lucrative option.
Georgetown — Sources in the Guyana Elections Commission (GECOM) stated last week that based on preliminary projections, Guyana’s general and regional elections could be held either shortly before or after August 22, 2011.
It is likely that the Claims and Objections period could begin in early April after GECOM evaluates the recently concluded cycle of continuous registration. The evaluation is scheduled to be conducted during the next two sittings of the commission.
At the conclusion of the Claims and Objections period, which is scheduled to last for six weeks, GECOM would prepare the Official List of Electors (OLE). At the same time it would procure all election-related supplies and services. Following that there would be a 60-day period of voter-education, at the end of which the Chairman of the Commission would inform President Bharrat Jagdeo that GECOM is ready for elections. Elections are constitutionally due by August 22, 2011 but there is a window of three months for extension of the life of parliament.
Once everything is in place the president would announce Nomination Day and Election Day. Schools, which are usually closed for the August holidays from July 8 to September 5, could be available for use as polling stations.
According to the media, there are some 46,000 new registrants on the list of voters, many of whom are young people. There are about 50,000 people who have not yet collected their National Identification Cards from GECOM offices and the commission has mailed out most of them.
President Jagdeo told a news conference two weeks ago that at least GUY$2 billion would be allocated to fund the election.
Opposition party, the Alliance For Change (AFC), has already announced that Khemraj Ramjattan would be its presidential candidate. However, the incumbent Peoples Progressive Party (PPP) has not yet done so. So far Party General Secretary Donald Ramoutar, Speaker of the House Ralph Ramkarran, Minister of Home Affairs Clement Rohee and Parliamentary backbencher Moses Nagamotoo have reportedly expressed their interest in the post.
Meanwhile the main opposition party, the Peoples National Congress Reform (PNCR) has announced a shortlist of five persons from whom its presidential candidate would be chosen. The shortlisted five are Attorney at Law James Bond, former GDF Major David Granger, former Finance Minister Carl Greenidge, former Minister Dr Faith Harding and Member of Parliament, Basil Williams.
Georgetown — Over 800 workers, including harvesters and crop husbandry hands, proceeded on strike at West Demerara estates, demanding the payment of a one-week sickness and provident benefit, officials of the Guyana Sugar Corporation (GuySuCo) disclosed last Thursday.
The corporation said that this one-week payment would normally be made at the start of every first crop in the new year, which was traditionally in the month of February. “However, because of the industry’s desperation to maximize every possible day to harvest and grind its canes the crop was started as early as possible, in this case at the start of this week at Uitvlugt. Now, it is no secret that the Corporation does not have cash, made worse by the failure to meet the 2010 sugar production target by such a long margin. As a result, there was/is no sugar to sell overseas to generate money during this period,” one senior GuySuCo manager explained to the media.
GuySuCo suffered from 250 strikes last year and its production of about 221,000 tonnes last year was the lowest in the decade. This year's target has been set at 300,000 tonnes.
Georgetown — Maxine Dax, 65, a crippled grandmother, was denied bail, when she appeared before Chief Magistrate (ag) Priya Beharry last Friday at the Georgetown Magistrates’ court, to answer to the charge of trafficking in narcotics. She had to be lifted by four police ranks into the courtroom to answer the charges.
The elderly woman, reported to be an American citizen, was unrepresented. She was ordered to return to court on February 7, 2011.
According to reports, police, acting on information received, intercepted a car on the Garden of Eden Public Road, East Bank Demerara, in which the accused was a passenger. She was reportedly on her way to the Cheddi Jagan International Airport to board a New York-bound Delta Flight.
The police conducted a search of the vehicle and discovered nine parcels containing rock-like substances suspected to be cocaine concealed in the back seat of a motorized wheelchair that the accused had in her possession.
Subsequent tests confirmed the substances to be nine and a half kilograms of cocaine.
The woman stated that she resides at 61 Eastern Parkway, New York City, North America and had come to Guyana to visit friends.
Georgetown — Barbados-based Guyanese, Mahadeo Deokarran, reported that he lost $3M from a locked vehicle two Tuesdays ago.
Deokarran , 40, whose family is from Bell Vue, Canal Number Two, West Bank Demerara, said that he had a joint fixed deposit account at the Vreed-en-Hoop branch of Republic Bank and visited there last week Tuesday to withdraw the money. However, he was told to return at 8:30 am the next day when he withdrew the $3M and returned to his Toyota AT 192 car where he placed the money under the seat.
He then visited a travel agency, located next door to the bank, to confirm his flight back to Barbados and next travelled to East Bank Demerara where he stopped at the M&M Snackette by the Demerara Harbour Bridge to make some purchases.
However, when he went back to the car, which was closed, to get some money to pay for his purchases he discovered the money missing.
Deokarran was shocked after not finding the $3M, and told the media “I become cold because I know I placed it there. I checked under the other seat too. Other than the travel agency, I did not leave the car. And it was locked all the time.”
Deokarran held a meeting with the bank manager where he expressed his concerns about a possible linkage of the alleged theft of his money and being told to return at a certain time the next day, when in the first place he had all the necessary bank documents in his first visit to the bank.
Deokarran said “I want to highlight this because other people could suffer the same way I did. But I am not gonna leave this down so easy.”
The Police said that are still to review the bank’s surveillance tapes.
Georgetown — A channa bomb was hurled at the home of former PPP parliamentarian, Philomena Sahoye-Shury, two Fridays ago at around 10:00 pm.
According to Kaieteur News (KN) investigations revealed that the would-be arsonists had intended to hurl the device into the verandah of the veteran politician’s Canje and Sheriff Street residence but it fell short and shattered in the yard. KN reported that it observed remnants of the device strewn in the front yard below the verandah facing Sheriff Street.
There has been a series of arson attempts recently including at Enterprise and Annandale Primary Schools and at an office complex in Kingston. But President Jagdeo said he does not believe that these incidents are election related.
Georgetown — A female sergeant has been placed under close arrest last Wednesday, for being in possession of marked cash that was part of a police sting operation.
According to reports the female cop was caught red-handed with the money by the police who moved in after she collected the money from a Mon Repos resident. The sergeant is said to have made an arrangement with the Mon Repos resident who was placed in the lock-ups at the Beterverwagting Police Station, to set him free for a fee of $50,000.
The man then left with the agreement to return with the cash but instead went to the Criminal Investigations Department (CID) Headquarters, Eve Leary where he reported the matter and the sting operation was set up.
According to Kaieteur News (KN), all the while, the sergeant kept calling the man on his cellular phone, not realizing that her every word was being heard by investigators who were prompting the man’s reply.
The arrangement was for the Sergeant to meet the man at a designated bar near Montrose on the East Coast of Demerara to collect the money. But instead the man took the money to the Sergeant at the BV Police Station, where he handed it over to her. Ranks from the CID Headquarters who had parked a short distance away then moved in on the sergeant and caught her red handed with the marked money.
KN reported that the sergeant was previously fingered in one of the most embarrassing financial frauds in the Guyana Police Force, but she was transferred to the East Coast of Demerara.
Georgetown — Majeed Khan, a Kaneville businessman, was shot two Thursdays ago following a robbery in his home and business place on the East Bank of Demerara.
Khan’s wife, Pamela Gordon said that she was in the house when she observed five men, who were wearing handkerchiefs and stockings to conceal their identities entering the premises. She said that two of the bandits had guns while the others were wielding knives.
The men ordered her husband not to make any noise and to direct them to their money and jewellery. The gun-toting bandits then approached her and ordered the same from her and in the process one of them struck her with his gun while the other cuffed her.
She said she told them that the money was in the shop and that they did not have any jewellery. A few minutes later she heard one gunshot ring out and when the men fled she saw her husband slumped in a pool of blood.
Gordon estimated that the men managed to grab just about $150,000. The men also took her bag which had in it bank cards, a mobile phone and some money in a wallet, among other items. The couple was assisted by neighbours after the bandits escaped.
Khan was released from hospital. Meanwhile the police are looking for several known suspects from within in the village.
Georgetown — A businessman, described as an auto dealer, who reportedly dropped his licensed handgun, was shot by a drug addict who retrieved the weapon.
According to Kaieteur News (KN) the .32 Taurus pistol fell out of the auto dealer’s ankle holster during an altercation with a female on Sheriff Street at around 3:00 am last Saturday. A man, identified as a drug user, allegedly picked up the firearm and fired two rounds at the businessman when the businessman attempted to retrieve his weapon. The ‘junkie’ then fled into the Campbellville area with the stolen weapon.
But Police, acting on information, visited the suspect’s home on Stone Avenue, Campbellville, where they retrieved the handgun and its ammunition. The police have also detained the alleged gun thief.
teen set free
Georgetown — The case against three policemen who had been charged separately with torturing a teen and wounding two other persons last October has been dismissed.
Last Friday, Magistrate Naysha Williams-Hatmin, at the Vreed-en-Hoop Magistrate Court decided to dismiss the charges against Sergeant Narine Lall, Constable Mohanram Dolai and Corporal Oswald Foo after witnesses failed to make appearances for the 16th time. The magistrate instructed the three accused that they were free to go.
Prosecutor, Police Inspector Krishnadat Ramana, said the case was called 16 times and the virtual complainants never appeared in court. He said arrest warrants were issued for the complainants, Tyrone Thomas and Deonarine Rafeek as well as for other witnesses in the case. He pointed out that although the court dates were published in the media, the witnesses still never showed up.
Ramana noted that on all 16 occasions when the case was called the defendants were present in court with their lawyers.
The charges against the three police officers read that on October 28, at the Leonora Police Station, they unlawfully and maliciously wounded Deonarine Rafeek with intent to maim, disfigure, disable or cause him grievous bodily harm. A second charge against Lall and Dolai alleged that between October 20 and October 29 last, at the Leonora Police Station, they unlawfully and maliciously wounded Nouravi Wilfred.
Lall and Dolai were also charged with felonious wounding, in which it was alleged that they unlawfully and maliciously wounded the 15-year-old Tyrone Thomas, with intent to maim, disfigure, disable or cause him grievous bodily harm. This incident allegedly occurred on October 28 at the Leonora Police Station.
The case, which sparked outrage against police brutality, arose when Deonarine Rafeek, Nouravie Wilfred and teenager Tyrone Thomas were held in October last year during investigations into the murder of retired Region Three vice-chairman Ramenaught Bisram.
It was revealed that during the investigation, the teenage boy’s genital area was set alight allegedly by the policemen involved in the case and it was only when this was exposed in the media that the boy was taken to the hospital.
It is largely felt that the witnesses were paid off not to attend court.
Lawyer, Khemraj Ramjattan had also filed a civil suit against the state in the matter and he disclosed that a ruling is expected to be made soon. The case is being heard by Justice Roxanne George. Her judgment is being awaited.
Georgetown — Leader of the Parliamentary Opposition Robert Corbin says that he is sticking to his story that President Jagdeo has sought at least three legal opinions on extending his term in office and outside of GECOM's which is now public knowledge. However, Corbin stated he would not identify his other two sources as he did not want to compromise his colleagues.
The Opposition Leader added that he is glad to hear that President Bharrat Jagdeo is on record saying that there was an opinion sought at the level of the Guyana Elections Commission (GECOM) as it relates to extending his time in Office.
President Jagdeo has challenged Corbin to identify the legal advisors from whom he purportedly sought assistance in finding out how to extend his stay in Office. According to Jagdeo, Corbin must identify from whom, when and where the advice was sought, stating that Corbin must do this or lose his credibility.
Meanwhile, Corbin in response to that challenge stated that the President has repeatedly said he has tapes of political opposition leaders meeting with criminals but he is yet to provide the evidence. According to Corbin, if the President wants to be taken seriously then he should provide those tapes.
In response to Jagdeo’s statement that he was not interested in a third term, the Opposition leader reiterated that he never made mention of a third term, but rather, he spoke of the President seeking to extend his time in office.
The President posited that Corbin was just seeking political attention at a time when he has ceded the right to be his party’s Presidential Candidate and was seeking to boost his almost dead political popularity, Kaieteur News reported.
Georgetown — The 2011 budget will bring relief to both ordinary citizens as well as businesses as a result of a number of tax-relief measures and increases in pensions and public assistance.
In presenting his GUY$161.4 billion dollar budget, Finance Minister, Dr. Ashni Singh said “Budget 2011 makes provision for the implementation of certain other specific measures designed to benefit the vulnerable in our society, the elderly, the working people of our country and our rapidly growing private sector.”
The Minister announced that as from February 1, 2011, incorporated businesses will pay less Corporate Tax while people earning GUY$40,000 per month or less will no longer have to pay income tax. Singh also said that with effect from February 1, Public Assistance has been increased to GUY$5,500 per month, up from GUY$4,900 per month and Old Age Pensioners would be receiving GUY$7,500, an increase of GUY$900 per month. There are an estimated 42,000 Old Age Pensioners who would benefit from this increase.
Incorporated businesses, except telephone companies, would now pay 40 percent Corporate Tax on chargeable profits, a decrease of 5 percent. The budget also brought relief to non-commercial companies which will enjoy a 5 percent reduction in tax, bringing it down to 30 percent. The Finance Minister said the tax relief measures were aimed at allowing businesses to retain and reinvest a significantly higher share of their profits.
The Minister said that during 2011, the economy is expected to grow by 4.6 percent and inflation is projected at 4.4 percent compared to last year when Guyana’s economy grew by 3.6 percent and inflation was 4.5 percent.
This is Guyana’s largest ever budget and is 13.1 percent higher than last year’s.
The Minister also noted that Guyana's foreign reserves stands at US$780 million.
Debate on the budget will start soon.
Georgetown — Gold production surpassed the 300,000 ounces mark for the second successive year last year when production hit an all time high.
According to the Guyana Gold Board, gold declaration for 2010 was 308,438 ounces, representing an increase of 3,260 ounces over 2009’s declaration which was 305,178 ounces.
There was a surge in declarations towards the end of the year with almost 16,000 ounces being declared in the last four or five days of December. This no doubt was influenced by the high price of gold which went past the US$1,400 mark. According to the Gold Board, the average price of gold for 2010 was US$1,235 per ounce compared to the 2009 average of US$972 per ounce. The highest price reached for 2010 was $1,426 and the lowest was $1,052 per ounce.
Despite falling short of the 311,816 ounces as projected in the 2010 National Budget, the export earnings for 2010 were US$346.4 million, an increase of 22.98 percent or US$65M over the previous year.
The Guyana Gold and Diamond Miners Association, heartened by the 2009 performance of the industry, had set an ambitious target of 400,000 ounces for last year.
The Guyana Gold Board said that while there are varying views as to why production fell short, the main reason for the shortfall was inclement weather – a dry spell early in the year followed by heavy rainfall midyear around July/August.
Georgetown — The man, who was killed following the explosion of a fragmentation grenade at the Stabroek Market on January 5, was not involved in any suspicious activities.
Minister of Home affairs Clement Rohee told a press conference last Friday that they have not unearthed any evidence that Hilton Lazarus, who died in the explosion, was involved in any deviant activities. Rohee added that police also confirmed that Lazarus was not involved in any crimes. Nineteen other persons were injured when the grenade went off. Lazarus was positively identified by his mother Desiree Bacchus, of 44 South Sophia, Greater Georgetown last week.
Crime Chief Seelall Persaud noted that the last place Lazarus resided was with his family at the address given. Lazarus, called “American”, reportedly did odd jobs for vendors in the area. Police Commissioner Henry Greene had earlier said that Lazarus was a courier involved with illegal substances.
According to media reports it is believed that Lazarus was holding the grenade in his hand when it exploded killing him. The Police have said that parts of a fragmented grenade have been recovered by the team of investigators which included police explosives experts.
Minister Rohee had told a press conference earlier that for some time they have been looking at the numerous illegal activities taking place in and around the Stabroek Market, and the need to clean-up the area. According to the Minister, the lawless activities at the Stabroek Square included the establishment of a number of illegal rum shops, harbouring of persons of unsavoury character, playing of loud music, trafficking in narcotics, vending of stolen articles, the establishment of unauthorised cook shops, barber shops, and hair-dressing salons, most of which have illegal connections from the Guyana Power and Light. He added "We have also received reports about the selling of raw gold openly, which is an illegal activity, renting of illegal firearms, the sale of small amounts of ammunition around the area, the snatching of cell phones, just to mention a few."
Meanwhile, Commissioner of Police, Henry Greene said that the police had been doing work at the Stabroek Market area in recent months and managed to stymie some of the illegal activities there.
He added that since October, 2009, he had spoken of sanitizing the Stabroek Market area, to make it safe for the public; and they have been doing so with ranks policing the area.
non-payment of rent
Georgetown — The Celina Resort lease agreement has been cancelled for non-payment of rent. This was disclosed in a press release issued by the Commissioner of Lands and Surveys, Mr. Doorga Persaud, last Friday. Meanwhile the owner of the popular resort and night spot has gone to court to fight the cancellation.
According to the Commission's release the 50-year lease, which was issued in August, 2003, to Mr. Bernard Yhun, for state land north of the seawall at Kitty, contained a number of conditions, including the payment of rent.
The release noted that “Mr. Yhun has only paid rental for the first year of the lease,” noting that “No other payments were made to the Lands and Surveys Commission concerning the lease. He has been in default of the rental payments from 2004 to 2010, totalling $4,125,000.”
The release added that Yhun failed to comply with repeated demands for payment of the outstanding rent, “even though he had given several commitments to settle his outstanding indebtedness to the commission.”
And so the commission had no alternative but to commence legal proceedings against Yhun for the recovery of the outstanding rent.
Even while the matter was engaging the attention of the court, the commission made further efforts to settle the arrears, but these proved futile.
The commission said it was then forced to withdraw the matter from the court and to enforce the condition of the lease regarding non-payment of rent.
The resort has been a popular tourist attraction with many returning Guyanese making it a point to visit during their vacations there.