The Alliance For Change (AFC) today repeats our demand for a reduction of the toll at the Berbice River Bridge. We are fully committed to supporting a subsidy whether from central government funds or by way of dividends accrued to the state-owned business-arm, NICIL.
We have noted that the President has rejected our demand which first emerged from the 2011 elections campaign and, later, in our Berbice Declaration of February 9, 2013.
It is well known that ordinary vehicle crossing the government-owned and controlled Demerara Harbour Bridge pay a nominal toll of $100 per crossing. By contrast, a crossing of the Berbice River Bridge costs $2,200.
Taxpayers have been giving a state subsidy to the Demerara bridge in amounts between $300 million and $500 million annually. During debate of the 2013 Budget, I had stated:
“The Demerara Harblour Bridge is another state-run business…Between 2011-13, the Government diverted $1,120 million to maintain the bridge, of which $300 million will be spent this year… In the interest of justice, Government should at least allocate $150 million in subsidy for Berbice Bridge tolls.”
President Ramotar refused to budge and, instead, sheltered behind an excuse that the Berbice bridge is privately owned.
Well, is the Berbice bridge company indeed a private company?
A look at the company’s records shows that the company is made up of $400 million in ordinary shares and $950 million in preference share, making a total of $1,350 million (one billion three hundred and fifty million dollars).
The Government through NIS and NICIL, two state-owned entities, owns $1,030 million or 76.3% of the total share capital of the Berbice bridge company. This is made up of $80 million in ordinary shares and $950 million in Preference shares.
Section 344 of the Companies Act defines a “Government company” as “any company in which not less that fifty-one per cent of the paid up share capital is held by the Government and includes a company which is a subsidiary of a Government company”.
NICIL is a wholly-owned Government company which, together with NIS, owns over three-quarters of the Berbice bridge company capital. So, why is this company being deemed a private company?
The questions that we ask are whether the President has mis-spoken, badly informed or advised, or is simply ducking from the demand to ease the burden of commuters on the Berbice crossing? The high toll is a penalty especially for school children and small cash-crop farmers who use the facility daily.
NICIL is dominated by government (PPP) players. It’s Chairman is Finance Minister with Government chief executive Roger Luncheon and Minister Robert Persaud being Directors. The CEO is Winston Brassington, who is at the centre of every controversial financial transaction involving use of the people’s money.
AFC understands that Brassington has stripped the Government of voting rights in the Berbice bridge company, and has waived dividends to which the Government is entitled on those Preference shares. In 2010 those dividends were worth $104,5 million, as it was in 2008 and 2009. This is an annual waiver. During the life of the Bridge Concession, the waiver would be worth more than $2 Billion.
Now, of course, Brassington could not do this on his own. He must have had the blessings of NICIL’s powerful Cabinet directors, the Cabinet itself and/or the President.
Knowing now that the Government has its hands fully in the Berbice Bridge pie, AFC says: Reduce or subsidize the Toll NOW!
12th June, 2013
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