GINA | GOVERNMENT INFORMATION AGENCY

Agreement reached: Teachers' strike to end in 72 hours

CPCE library receives a boost
-Dr. Misir donates recent publications

Regions advised to be on alert for flooding

GPL management fees were standard-PM Hinds

Prime Minister Sam Hinds has dismissed the notion that the management fees agreed upon for the former Guyana Power and Light (GPL) expatriate managers were exorbitant.
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ESBI managers of GPL have failed- Prime Minister Hinds

Linmine Omai privatization set for September
Power outage sets back original date

Second Reading of the Kidnapping Bill deferred: A number
of clauses to be ironed out

Agreement reached: Teachers' strike to end in 72 hours

Georgetown, GINA, May 19, 2003

After approximately five weeks of strike action teachers will be back on the job in 72 hours.
Today the Guyana Teachers Union (GTU) and the Ministry of Education (MOE) signed terms of resumption at around 16:00hrs. By Thursday, schools should return to normalcy.
The strike action by teachers disrupted classes for hundreds of students countrywide. This forced the Ministry of Education to implement alternative teaching methods for students writing the Caribbean Examinations Council (CXC) and the Secondary Schools Entrance Examination (SSEE).
It is now the job of Regional Education Departments to disseminate information regarding the recent agreement so that the full resumption of school is effected by Thursday.
The terms of resumption have specifically stated that there should be no form of victimisation, loss of service, secondments or dismissals for teachers who heeded the GTU strike action. Reports of any such action must be reported within three weeks.
After disagreements on increases in teachers' salaries for 2002, the GTU called teachers out on strike. The Ministry contended that increases were already paid for 2002 when teachers received between five and 15 percent increases last year.
This stalemate resulted in the intervention of Minister of Labour Dr. Dale Bisnauth who according to the stipulation of the Labour Laws 98:01 established an Advisory Committee to look into the matter.
This Committee was headed by Dr. Martin Boodhoo, former Pro-Chancellor of the University of Guyana and Consultant with the International Labour Organisation (ILO). The other members were Mr. Francis Carryl, Industrial Relations Officer, GUYSUCO and Mr. John Seeram, Bursar of the University of Guyana.
On April 24, this Committee presented its report to the Minister of Labour, in which it recommended that the parties reopen discussions on salaries for 2002 - 2004.
At the press conference hosted by Minister Bisnauth and Chief Labour Officer Mohammed Akeel, it was disclosed that the resumption was signed with the understanding that negotiations will follow for the above-mentioned period.
According to the Chief Labour Officer, matters relating to Whitley Council Allowances were also resolved. This will be paid to teachers who proceeded on leave before the signing of the agreement and those who go on leave four weeks after the signing.
Two weeks ago, Cabinet disclosed its willingness to award between 40 to 60 million dollars to bring teacher's salaries to the level of public servants, since the GTU had argued that teachers earn far less than public servants.
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CPCE library receives a boost
-Dr. Misir donates recent publications

Georgetown, GINA, May 19, 2003

As the Cyril Potter College of Education (CPCE), Turkeyen, celebrates its 75 Anniversary, the Library can now boast of additional literature, since the institution has recently received a donation of books.
Director of the Government Information Agency (GINA) Dr. Prem Misir today donated five of his recent book publications to the Library which will benefit over 400 students attending the Turkeyen facility. Other students from centres at Vreed-en-Hoop, Linden, Rose Hall, New Amsterdam and Anna Regina will also benefit from the use of the books.
The presentation of the books was made at a simple ceremony in the Library with students and staff members.
The books entitled: “The Political Mass Media – Racial Complex in Guyana;” “Ethnic Cleavage and Closure in the Caribbean Diaspora;” “Leader Behaviour and the Compliance structure in education: A Sociological study of ideology and social change in Guyana;” “Workers’ participation in Management: A Case of nationalized enterprises in Guyana;” “Work Commitment in Education.”
Chief Librarian Mr. Ivor Rodrigues, who has served in the post for nearly two years, expressed sincere thanks for the donation while congratulating Dr. Misir for his publications.
Deputy Principal of the College Mr. Wendell Archer noted the significance and importance of the donation, saying that it could not have happened at a better time, since it adds to the celebrations. Mr. Archer also pointed out that the books will aid in strengthening the Library and the students.
Dr. Misir has also presented these books to the University of Guyana Library.
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Regions advised to be on alert for flooding

Georgetown, GINA, May 19, 2003

Due to recent heavy rainfalls and reported flooding, the Minister of Local Government and Regional Development Mr. Harripersaud Nokta has alerted the Ten Administrative Regions to be cautious.
Earlier today, the Minister asked the Regional Administrations to report to his Ministry on the situation.
This call came in the wake of recent reports from the Regional Chairman of Region 10 (Upper Demerara/Berbice) Mr. Mortimer Mingo, stating that a few areas in the Region are experiencing flooding.
According to Mr. Mingo, areas experiencing flooding include Wismar, Victory Valley which experienced a landslide, Industrial Area, Retrieve and Rainbow City, which are the most affected areas. He also stated that reports reaching Region 10 suggest that areas in the Berbice River are experiencing flooding too and a team will visit the area shortly to assess the situation.
Meanwhile, Minister Nokta has advised the Regions to take the necessary precautions to avert any disaster. Cabinet will intervene after receiving and evaluating reports from the Region.
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GPL management fees were standard-PM Hinds

Georgetown, GINA, May 19, 2003

Prime Minister Sam Hinds has dismissed the notion that the management fees agreed upon for the former Guyana Power and Light (GPL) expatriate managers were exorbitant.
The Prime Minister shared this view during an interview on "Center Page," a Government Information Agency (GINA) programme.
Responding to queries surrounding the salaries ESBI managers received, during their tenure at GPL, Mr. Hinds said the rates were in keeping with international investment standards.
He explained: "The fees are the kind that one would pay for a management contract. When you take out a management contract with a company, you pay the company 2 to 5 times the direct cost."
The Prime Minister added, " If one gets a manager from the developed world, you have to pay them their going rates in the developed world; they have to be made comfortable and cover all costs internally in Guyana."
The reason for this calculation, the Prime Minister said, is to offset the costs of the various persons who may be utilised in a management capacity with regard to foreign investments like the GPL contract.
According to Mr. Hinds, apart from AC Power/ESBI, who eventually succeeded in the partnership arrangement with Government, other well-known companies, including Enron, Southern Electric of the USA, and Florida Light and Power companies had initially expressed interest in investing in the then Guyana Electricity Corporation.
However, these companies opted against entering into the GPL privatisation arrangement, citing the management fee as insufficient, the Prime Minister pointed out.
Touching on electricity costs, Mr. Hinds noted that they are reasonable when compared to costs in other Caribbean countries.
He remarked that the answer is not to have electricity prices below a level that is required to sustain the company, since this would setback the operations.
Mr. Hinds however said the GPL operations should be conducted at the lowest possible sustainable cost.
He urged that consumers continue to utilise electricity in a conservative manner, adding that the next block of investment into the utility has to come from consumers.
"We have a challenge and an opportunity to make the investment; We have to take the responsibility for investing directly into enterprises in Guyana," said the Prime Minister.
With effect from April 30, the GPL came under the sole management of Government, following the severing of the joint venture arrangement between the Guyana Government and the Commonwealth Development Corporation (CDC), AND Electricity Supply Board of Ireland, ESBI.
ESBI provided the managers in keeping with the contract entered into with Government, but the poor performance of the expatriates led to Government's repeated expressions of dissatisfaction over the functioning of the utility.
Subsequently, the management signalled that it was opting out of the GPL deal and the investors later sold their 50 percent shares in the company to Government for US$1.00.
Mr. Rabindranauth Singh has been appointed as Manager of the GPL following the departure of the former GPL managers. Chairman of the new board is Ronald Ally, while board members include Winston Brassington, Narvan Persaud, Carville Duncan and Errol Cheong.
The Guyana Power and Light Company is currently engaged in curbing illegal practices involving reconnections that are not sanctioned through the official channel. Persons caught in this act ca be placed before the court and fined for this offence.
The company continues to seek investors as part of its main emphases, to assure the viability of the utility.
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ESBI managers of GPL have failed- Prime Minister Hinds

Georgetown, GINA, May 19, 2003

The failure of the expatriate managers of the Guyana Power and Light Company, GPL, to reduce technical and commercial losses, have been cited by Prime Minister Sam Hinds as the cause for the utility's poor performance.
This observation was made by the Prime Minister during an interview at the GTV studios, on the programme "Center Page," a televised production of the Government Information Agency (GINA).
Pointing to the specific losses that the GPL recorded under its former managers who were provided by the Electricity Supply Board of Ireland, ESBI, in keeping with the GOG-AC Power/ESBI Agreement, Mr. Hinds noted that system losses are inherent in any utility.
He explained that where 100 kilowatt hours may be utilized by a utility such as electricity, 55-60 hours may be accounted for, with the additional 40 hours being discharged, but not reflective in charges to consumers.
However, the Prime Minister affirmed, " It is the job of the manager to work to reduce those losses." He added that the system losses need significant investment at the moment, in the vicinity of 100 million dollars, to bring it to an efficient state.
Meanwhile, the issue of theft that was prevalent under the Guyana Electricity Corporation also proved problematic under the Government of Guyana/AC Power arrangement.
Mr. Hinds disclosed that commercial losses were recorded through rackets involving GPL workers and consumers, reports to which effect were made to him after the departure of the company's overseas managers.
"This was an issue we signalled to them and took a strong position. This position was that they were not doing enough to detect, control and reduce commercial losses in particular, " the Prime Minister said.
Now that the foreign investors have broken their relationship with Government, Mr. Hinds called for a change in the culture among Guyanese, with regard to the acquisition of electricity. Against this backdrop, he remarked that consumers should realise that it is no longer wise to steal electricity.
He said his focus is on moving forward. "We have to look to galvanising and mobilising and bringing together the next block of investment into GPL," stated the Prime Minister.
Mr. Hinds observed that this would entail GPL's cash flow to sustain itself out of tariffs, and its attraction of investments to undertake further improvements to carry on, and to replace equipment.
The Guyana Power and Light Company was established on October 1, 1999, out of a contractual equal partnership arrangement between Government and AC Power/ESBI.
As part of the terms of the contract, the managers were mandated to ensure the reduction of technical and commercial losses. Having failed to deliver the required operational standards, Government informed the management of its disappointment with this state of affairs.
Subsequently, the GPL managers bailed out of the partnership around March, selling its fifty percent shares to Government for US$1.00.
The Prime Minister has been crusading for local investment to be fuelled into the operations of GPL, but he said there has been limited success so far.
He anticipates that a change in attitude will lead to improvement in the way the utility service is perceived.
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Linmine Omai privatization set for September
Power outage sets back original date

Georgetown, GINA, May 19, 2003

The impending majority takeover of the Linden Mining Enterprise, LINMINE, by Omai Gold Mines, the locally based subsidiary of Canadian miners CAMBIOR Investments, is set to take off by this September.
This new date is a shift from the earlier anticipated July date announced by Government, following the inking of preliminary terms of cooperation leading to Omai's 70 percent management of the Linden bauxite operations.
During a television interview on the GINA programme "Centre Page," which was recently aired on GTV 11, Prime Minister Sam Hinds said that plans remain in tact for the new Government of Guyana-Cambior arrangement which was originally set to take effect during the second quarter of this year.
However, the three-week power shutdown in the mining Region has put a "spoke in the wheel" of bauxite production. This has caused a shortfall in the estimated production target, Mr. Hinds said, noting that the process now has an opportunity to regain footing with the power situation restored.
Omai's agreement entered into with Government late last year, specified that the mining company agreed to undertake a "bankable feasibilty study" to ascertain and then acquire the necessary financial investment required to sustain the mining operations at the Linden mines.
Touching on the status of financial investment into Linmine, the Prime Minister said this area has not yet been wholly covered, but he spoke about Omai's future installment of a 9 MW power plant in the Region.
The plant will be channeled towards the supply of electricity to bauxite operations, in an effort to maintain steady production and timely exportation to overseas markets. Environs of Lindeners are also slated to benefit from this additional 9 MW supply of electricity, which should see foundation work commencing in the near future.
At the moment, Omai conducts stripping and mining for LINMINE, at the latter company's East Montgomery Mines. This is being undertaken at a far more cost- effective level, averaging 60 percent of the fees Linmine would have paid to another contractor.
Linmine has laid off a number of workers from its mines, while several employees have opted for voluntary separation since last August, to pave the way for the Omai investment.
In response to whether Omai's bauxite exploits will be confined to Linden, the Prime Minister said other ore bodies will also be sourced in the Region.
With Omai's reserves in the Essequibo region nearing depletion, the mining firm has partially diverted its resources and equipment to bauxite production, while seeking new mining concessions.
Guyana's bauxite production has been experiencing a downturn over the last two decades, primarily due to increased production costs and international market competition.
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Second Reading of the Kidnapping Bill deferred:
A number of clauses to be ironed out

Georgetown, GINA, Monday, May 19, 2003

Today, the Second Reading of the Kidnapping Bill was deferred to a date to be announced as a result of a number of clauses to be ironed out. Minister of Home Affairs Ronald Gajraj told the Assembly that there have been some concerns related to some provisions in the Bill.
Minister Gajraj said after consultations with representatives of the PNCR, a number of possible amendments were suggested and were made. He noted that progress has been made in this regard, but there still are some aspects of the Bill to be addressed.
Today, PNCR Member of Parliament Deborah Bakker was scheduled to move a number of amendments to clauses five (5), six (6), eight (8) and ten (10). According to the proposed amendment for clause ten, it would have been proposed that the clause should be divided into two parts (Clause 10(1) and Clause 10(2)). Clause 10(2) would then address the issue of “Knowingly negotiating to obtain ransom.” The PNCR is proposing that clause 10(2) be therefore read as, “Whoever knowingly negotiates or assists in any negotiation to obtain any ransom for the release of any person who has been wrongfully restrained, wrongfully confined or abducted shall be guilty of an offence and shall be liable on conviction on indictment to a fine of $1million dollars and imprisonment for five years”.
The much-touted abduction Bill or the Kidnapping Bill as it is commonly referred to is a Bill intituled AN ACT to provide for the punishment of the offences of abduction, wrongful restraint and wrongful confinement for ransom and other related offences and for matters incidental thereto.
In an invited comment, Minister Ronald Gajraj told GINA last week that the eventual passage of the Bill should not be seen as a quick fix to the spate of kidnappings and abductions, but hoped that it would be viewed by those who are inclined to perpetrate this act, as a deterring factor. A number of bilateral meetings will be held between the political parties in the National Assembly, to arrive at a consensus as it relates to prospective amendments to the Bill
The Bill is one of many enabling provisions provided to aid law enforcement agencies in their fight against an upsurge in criminal activity over the last fifteen months.
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