Over $6B in lawsuits have been filed against the State-owned Guyana Chronicle newspaper, Minister within the Office of the Prime Minister Kwame McCoy has announced.
“The Board of Directors of the Guyana National Newspapers Limited (GNNL) has announced that the company is facing serious financial and professional challenges,” Minister McCoy said in a statement.
“These lawsuits all relate to irresponsible reporting, reckless and careless directions from the former Board members, General Manager and Editor-in-Chief,” he said.
In addition to the large sums that are being sought, Minister McCoy said the company is also faced with the additional burden of the cost associated with having secured legal representation in these matters.
To compound matters, as of August 2, 2020, the GNNL was in a financial deficit with no operating cash flow to meet immediate needs.
Minister McCoy explained that from August to the time of the issuance of this press release, the new management team and Board of Directors have started to put cost-recovery measures in place that will “hopefully soon realise self-sufficiency”.
“The Editorial team is also being evaluated and changed to restore professionalism in the GNNL and pride in its service to the people of Guyana,” he said.
“It is clear that the former general managers of the company, the likes of which include Ganesh Mahipaul and Sherod Duncan, have endangered not only the viability of the company but also the livelihood of the employees of GNNL,” Minister McCoy added.