Georgetown : Cabinet has granted approval for the immediate release of $3.8 billion for the Guyana Sugar Corporation (GuySuCo), a decision that was made following the presentation of an up-to-date report on the operations of the sugar corporation by Minister of Agriculture Noel Holder.
Minister of State Joseph Harmon at a post-Cabinet media briefing today at the Ministry of the Presidency, said Government has granted approval for the immediate release of the identified sum for the entity.
The comprehensive report submitted for Cabinet’s perusal, gave a clear insight into what is needed by the beleaguered sugar corporation for the next few months.
The cash inflow will cover the sugar industry’s shortfall from the current period to August given the fact that its income will only amount to US$1.6 million and the expenditure will be US$5.7 million, Minister Harmon said.
60 percent of the bailout is expected to be repaid to the government’s coffers. The minister addedthat for the period August to December, this year GuySuco will earn US$13.6 million, but with an estimated expenditure of US$19.5 million, another set of funds will have to be approved to meet the projected shortfall.
The national importance of the sugar sector has also warranted the need for a full-enquiry into its operations, according to Minister Harmon.
“It is not something that you make (decision) easily, that affects the lives of so many thousands of Guyanese people”. He described sugar as akin to being, “the mother of the trade union and labour movement in this country”, hence it is not a decision that the administration will take lightly. He added that government is seeking to “clean up that money into the dark hole (as some have described GuySuco) it is being poured”.
As a result of changes made since taking office, at least US$14,000 per month has been saved, the minister explained. He said fees were paid to certain persons who were working in the industry, and not doing anything much, and other professionals which the Administration felt were not in the best interest of the corporation. Among those “let go” by government were several engineers from India, based at Skeldon and “not doing much in relation to the sugar industry” and a public relations consultant who alone accounted for the almost US$14,000 which will now be saved monthly.
It was further explained that the agriculture minister’s report listed several measures that are being implemented to reduce monthly expenditure in the sector.
The full enquiry will see participation from members of the public and other stakeholders.
“We believe that once we get the board at a certain level that we are able to get a full-fledged enquiry into sugar. At that point in time, we will be able to make a decision and that decision will be assisted by the people of this country”.
Soon after the new Government took office, it was met with the claim that GuySuco was virtually bankrupt, a fact that was hidden by the previous Administration, Prime Minister Moses Nagamootoo reminded attendees at the Enmore Martyrs’ Day Observance held last evening to commemorate the lives of five sugar workers who were killed by colonial police in 1948. He said by bankrupting the corporation, it had placed the lives of 16,000 sugar workers at risk
