The Government of Guyana has been forced to withdraw a US$30 Million Memorandum of Understanding that was entered into with an overseas based Guyanese for the setting up of a waste recycling plant.
The decision by the Donald Ramotar administration came in wake of several embarrassing reports in the press about the company that was awarded the contract.
Cabinet Secretary Dr. Roger Luncheon on Wednesday morning made the announcement. He said “in wake of media revelations and in the context of the recent execution of the Memorandum of Understanding for recycling services in Guyana, cabinet has decided to withdraw its memorandum of understanding with the firm”.
Dr. Luncheon conceded that due diligence on the investor and the company may not have been enough.
“The due diligence, I will be the first to concede did not attract the same level of due diligence as it would have, had it been for the execution of a contract. A number of areas were inadequately attended to and the revelations in the media pointed this out rather forcibly for the attention of not just the cabinet but for the Guyanese people”, Dr. Luncheon said.
Just over a week ago, the Ministry of Local Government sealed the deal for the construction and operation of a multi million dollar recycling plant with a company by the name of Natural Globe Incorporated which was headed by Guyanese, Mohammed Osman.
However, soon after the signing of the contracts, reports surfaced that the company was a non existent one and the owner found it hard to explain where he will be sourcing funding from for the project. He claimed that he was one of two investors. He pointed to the daughter of Social Services Minister Jennifer Webster as the other investor.
The Minister hastily called a press conference to deny any involvement in the project by her family. Checks in Canada where the man claimed he operated the company came up empty handed.