Stabroek News
August 15, 2001

The Government of Guyana has expressed regret over the failure to reach an agreement with Toolsie Persaud Ltd (TPL) for the use of a property for the relocation of the Water street vendors.

However, it said it remained committed to ensuring that TPL received "prompt and adequate compensation" for the plot as provided for under the Laws of Guyana. This, observers said, seems to hint at likely compulsory acquisition of the site.

In a statement issued to the press yesterday, Minister of Finance, Saisnaraine Kowlessar, reiterated that the government had informed TPL of its desire to acquire the site at Mud Lot 49-52 Water and Robb Streets for the relocation of the vendors.

He added that a number of meetings were held between representatives of the government, including the Attorney General and Minister of Finance, and the principals of TPL.

Kowlessar disclosed that TPL, which had purchased the plot of land for $2.7 million (US$63,000) in 1990s, had submitted a valuation for $457,028,906 with an additional $397,921,250 for works carried out on the land. Kowlessar however said that under the most optimistic investment scenario, the plot would be worth less than $100 million today.

He said that the company had indicated an interest in swapping the plot for several other government properties, and had identified the Guyana Stores Ltd (GSL) Garage at 13-14 Water street and the GSL Berbice Building, Strand, New Amsterdam, which Kowlessar said were valued at $868.4 million. No agreement was reached on this proposed barter, because the government considered that the valuation and claimed cost of development by TPL were inflated, he said. Neither the Internal Revenue Department nor City Hall rates and taxes records can verify claims of expenditure made by TPL so far, Kowlessar said.

As an alternative, he said, the government had offered to lease the plot at $4 million per annum but this was rejected by TPL.

A press release issued by the company on Monday stated that the government had made an abrupt and arbitrary "take it or leave it" offer of a lease payment which was "totally unrelated to the economic use or value of the property."

The release also mentioned that "the government's decision to make the site available for use by the vendors was made without reference to the company and came as a complete shock."

The company had argued that the Water Street plot was valued by a qualified Chartered Quantity Surveyor and a Chartered Land Appraiser for determining a market-driven purchase price.

Meanwhile, Head of the Presidential Secretariat, Dr Roger Luncheon, told the press on Monday that the government intended to keep to the September 1 court-anointed deadline for relocating the vendors on Water street to the empty lot owned by TPL.