| The government now claims to have an agreement with a phantom group of investors for the highly controversial Marriott Hotel project which industry executives and politicians insist would be unable to recover costs or make a profit.Winston Brassington, the head of the National Industrial and Commercial Investment Limited (NICIL) – Government’s investment armWinston Brassington– told Kaieteur News this week that an agreement has been signed with investors. However, he gave no clue as to who the investors are.The only identified investor thus far is the government, which is putting US$20 million (G$4 billion) into the project.Industry executives and politicians claim that this is billions of dollars of taxpayers’ money being spent on a project that the government cannot justify.Even with claims that a project of this magnitude makes no sense in a market like Guyana where existing hotels are begging to fill their rooms, the government is still keeping secret the studies it claims to have done to show how the business would be successful.Industry executives and politicians say that tax dollars are being used to build a an unprofitable hotel that would eventually be sold off for next to nothing to friends of the government in a shady scheme that has already been shaped.The government says that the hotel project would cost US$58 million. Of that amount, the government is investing US$20M through NICIL. Republic Bank (Trinidad) agreed to find and sponsor investors who would commit US$27 million. This arrangement is also a tightly kept secret.The government had initially conveyed the impression that the Bank was among the private investors when in fact the bank was only seeking investors for the project and acting as a conduit.To make the money add up,China Jerseys Free Shipping, the government also has to find people who would agree to set up other businesses in the hotel,Wholesale Hockey Jerseys, such as a restaurant, nightclub and so on.At any rate, the cost the government floats for building the hotel is inflated but industry sources say this could be part of the plan being hatched to use taxpayers’ money to fund the entire project.One industry executive estimates the average international cost for building a single hotel room, inclusive of construction and furnishing, around $14M.Bharrat JagdeoThe proposed hotel at the Kingston mudflats is for 197 rooms. The source suggested that even if the cost is put at $20M per room,Cheap NFL Jerseys Wholesale, the total cost of constructing and furnishing the entire 197-room hotel would be slightly less than US$20M – the exact amount of taxpayers’ money being pushed into the project.“So, why is the cost of the hotel projected at US$60M?” the source asked.He suggests that this is where a shady scheme is being created. The government would be putting the entire amount needed to construct and furnish a high-end hotel,Cheap NFL Jerseys China, but by deliberately inflating the cost, it gives the so-called investors US$38 million that would never have been used.Further, the high cost would also serve to deter potential investors.Once the hotel is constructed and starts functioning, it will go bankrupt, the source suggested. The highly inflated construction cost will not support the anticipated rate of return.Then, he stated,China NBA Jerseys, the supposed-investors would look to recover their money.In the arrangement that Republic Bank (Trinidad) is facilitating, they would be the first to get their money back. But with the hotel having no money, the investors could then stake their claim on the property.So, the source suggested, the investors would simply take over the hotel in lieu of repayment.“The taxpayers will be ripped off of their investment of US$20M and the favoured ones of the government will get their hotel in a deal that would seem white, shiny, and clean.Further,NFL Jerseys Online, those who are laundering money would have a hotel and casino, one of the best ways to clean up money.“And what the Marriott would really be is a conniving scheme to steal taxpayers’ money and the hotel at the same time.” |
