The Guyanese government is contemplating a proposal that could lead to the resolution of a long-standing issue involving a payment owed by the Panamanian government for rice supplied by local farmers in 2018.
Attorney General and Minister of Legal Affairs Anil Nandlall provided an update on the matter, revealing that President Irfaan Ali has facilitated discussions with the Panamanian government to explore an amicable resolution.
Although the case is currently under consideration by the International Chamber of Commerce Arbitration Centre in Washington D.C, the government is actively reviewing the proposal put forth by Panama.
According to Nandlall, the proposal involves Guyana potentially forgoing the interest accrued on the outstanding debt of seven million US dollars.
The Attorney General emphasized the substantial legal costs incurred by the government, exceeding 150,000 US dollars, and highlighted the financial challenges associated with continuing the case.
The interest amount is reported to be close to the original sum owed by Panama.
Nandlall acknowledged the temptation to settle the matter due to the potential cost savings, as pursuing arbitration proceedings could require the government to expend significant additional funds.
He also noted the historical difficulty in securing payments from governments, even after winning legal cases.
In 2018, the previous administration sold 7.1 million US dollars’ worth of rice on credit to Panamanian authorities.
However, payments were never made, and the issue remained unresolved during the subsequent change in government.
The government’s consideration of an amicable settlement reflects a pragmatic approach to resolve the outstanding matter and recover the funds owed to local rice farmers.