First Vice President and Prime Minister, Moses Nagamootoo in his column entitled “Litany of lies” which appeared in the December 17, 2017 Guyana Chronicle, among other things, referred to the debt of the sugar industry. We were tickled to note that the PM in his column, in a span of mere days indicated that the sugar debt figure has fallen from G$85B to G$77.8B indicating that progress is being made in this regard or maybe the PM was, as he is fond of doing, blowing some hot air. Whatever the case maybe the PM has revised his figure downward.
On the issue of the debt, we wish to tell Mr Nagamootoo that our conclusions were reached after we simply analysed the data given to us. It’s by no means rocket science. Added to that, similar conclusions have also been reached by other individuals, clearly PM you seem to be in the minority on this issue.
With respect to the figures the PM quoted in his column we do not have the disaggregated data. Nevertheless, our most recent available picture on the debt which the Administration shared with GAWU on December 31, 2016, reflected on the industry’s indebtedness at the end of October, 2016. Using that data, we wish to advise the PM as follows:-
At the end of October, 2016, short-term debt totalled G$17.16B which included payments to creditors, local and foreign banks, and state agencies. This Mr Nagamootoo represents the Corporation’s immediately payable debt and which is on call.
- Further to that, at the end of December, 2016the Corporation’s indebtedness of approximately G$4B to the NCB (Jamaica) should have been settled and further reducing the industry’s short-term indebtedness to G$13.16B.
- Of the short-term debt, G$7.6B (44 per cent) was owed to a Government agency – Guyana Revenue Authority (GRA) – which notably has been granting write-offs of even greater significance to other enterprises.
- The loans relating to the Skeldon project were being serviced by the Government, and are included in the figures contained in the Government’s Debt Report. This is not unusual and similar facilities are extended to other state-enterprises
- The Pension Liability (G$32.8B), labelled in the document we received as a potential debt and representing of about 41 per cent of total debt, is very questionable in view of the high turnover and the mortality of pensioners. On this score, Mr Nagamootoo, you should ask GuySuCo in light of the large retrenchment of its workers what this figure is expected to be at the end of 2018. There you will find though no monies have been paid out, the figure would have dropped considerably as it is simply an accounting provision.
But to shed a little more light on this matter, Mr PM, the report titled “Diversification Options for the Guyana Sugar Corporation Inc” dated October 26, 2017, which we also received on December 31, 2016, at page 26 presents the Corporation’s cash flow for the period 2016 to 2030. We recognize that between 2017 and 2022, the Corporation will settle its indebtedness paying an aggregate sum of only G$13.4B, far from the G$85B or G$77.8B the PM referred to. We must reiterate the large sums the PM writes about is simply another scare tactic being employed to give cover to the heartless plans for the sugar industry.
Mr PM you may want to remove your jade-coloured glasses.
