As soon as Robert Badal begins preaching about all that is wrong in the local business sector and of course 'corruption' this is the material that will meet him:
1. First, Mr. Robert Badal has rescinded a sale that occurred in 2007 between Guyana Stockfeeds Inc. [GSI] and El Dorado Restaurant Inc. over the assets/franchise known as Popeye’s. While GSI is now left with a capital loss as a result of the rescission, Mr. Badal is reported to have subsequently sold the Popeyes franchise for a profit of well over 100% of the value contracted by GSI (now rescinded). Mr. Badal stated in his report that the reason for the rescission is non-payment. However, NICIL can clearly show that GSI has had sufficient operating cash flows to pay this debt. Further, Mr. Badal operates as the majority shareholder, Chairman and CEO of both GSI and El. Dorado Restaurants Inc.
2. Second, Mr. Badal some time ago created a company in Trinidad and named the company by the same name as the Guyana counterpart, Guyana Stockfeeds Limited. However, this Trinidadian company is solely owned by Mr. Badal and is not a subsidiary of Guyana’s GSI. Mr. Badal uses this offshore company to procure goods and services (to the tune of G$932 M in 2010) and additionally causes GSI to pay this company G$30 M per annum as management fees. GSI (Guyana) does business in Caricom and the fact that Mr. Badal has formed another company with himself as sole shareholder is inimical to the best interests of GSI, more particularly the minority shareholders. NICIL finds no justification why the name of Guyana Stockfeeds Ltd should be used by Mr. Badal in Trinidad and finds that the CEO, Mr. Badal, to be in breach of his fiduciary responsibilities to act in the best interest of the GSI shareholders. Further, NICIL believes that there is no justification for the Trinidad company to procure any goods or services on behalf of GSI or conduct business for GSI, and believe that this is nothing more than a transfer of value from GSI to GSL.