Berbice businessman takes GRA, Finance Minister to court

Berbice businessman Inshanally Bacchus, Chief Executive Officer of I&R Bacchus Trucking Service of Bush Lot, West Coast Berbice, was granted an Order or Rule Nisi of Certiorari, directed to Finance Minister Winston Jordan and the Guyana Revenue Authority (GRA), quashing decisions made in relation to the operation of his business.

The Finance Minister had on November 23, 2016, terminated an Investment Development Mineral Prospecting, Mining and Stone Quarrying Agreement between the Guyana Government and the businessman, which was entered into on March 13, 2014.

The court made the order on the grounds that the decision by the Finance Minister to terminate the agreement was “capricious, whimsical, arbitrary, in breach of the rules of natural justice, in violation of the Applicant’s legitimate expectations, unlawful, null, void and of no effect.”

The Finance Minister was called upon to show causes why the order to quash the decision should not be made absolute. Moreover, the GRA’s Head of Law Enforcement, Fitzroy Corlette, had demanded by letter dated November 22, 2016; that the businessman pay $212,378,021 as customs duties and taxes in respect of certain machinery, equipment and motor vehicles for which tax exemptions were lawfully granted.

The court also stated that the decision by the GRA was “capricious, whimsical, arbitrary, in breach of the rules of natural justice, in violation of the Applicant’s legitimate expectations, unlawful, null, void and of no effect.”

The GRA’s Officer was called upon to show cause why the order should not be made absolute.

The court also ordered that an Order or Rule Nisi of Prohibition be issued directed to the GRA, a statutory body corporate and a public authority, restraining it and its servants and/or agents from seizing, forfeiting and/or disposing certain machinery, equipment and motor vehicles as contained in a scheduled herein, all being properties of the businessman.

In court documents seen by Guyana Times, the businessman explained that on October 29, 2013, he made and entered into a written agreement with Bauxite Company of Guyana Inc, a mining company carrying out certain mining operations mainly at Kurubuka, Upper Berbice River, Guyana, whereof he was contracted to excavate and transport bauxite overburden at the company’s mining operations site at Kurubuka, Upper Berbice River, Guyana on certain terms and conditions, more fully set out in the agreement.

He said by letter dated November 14, 2013, he applied to the then Natural Resources and the Environment Minister, Robert Persaud, for a waiver of duty and taxes on a list of trucks and machinery as per a quotation which was submitted with the letter from NM Trucking, Auto Sales and Agricultural Machinery.

“In the aforesaid letter, I explained to the said Minister of Natural Resources and the Environment, Robert Persaud that I was granted a contract with the Bauxite Company of Guyana Inc to excavate and transport bauxite mineral to and from various locations. This application was duly processed and I was informed by telephone to attend the office of the Guyana Geology and Mines Commission, Upper Brickdam, Georgetown. I duly attended the office of the Guyana Geology and Mines Commission where I was presented with an Agreement already prepared for my signature,” he outlined.

The businessman said he was asked to apply to GRA for VAT exemptions on the equipment. This was granted for eight heavy-duty Caterpillar machines. He was also later granted concessions by GRA on eight Caterpillar trucks and one excavator costing $464 million.

Bacchus said he applied for and was granted more duty-free concessions in 2015, where he spent almost $960 million more.

However, that same year, the businessman’s contract ended with the equipment parked for several months. In August 2016, the businessman said he was contracted by China Harbour Inc to transport sand and loam for the construction of a new international airport at Timehri, East Bank Demerara. He used some of the equipment he had purchased for the bauxite project.

However, in November last year, the businessman said that GRA and Fitzroy Corlette wrote him and pointed out that his equipment and concessions were under investigation.

GRA told the businessman that he had breached the conditions of the concessions when he also utilised some of the motor vehicles and equipment at the CJIA expansion project, “contrary to the purpose for which the concession was granted by GRA”.

But the businessman’s attorney, Anil Nandlall contended otherwise in responce to the GRA via letter and subsequently took the matter to court.