The Guyana Agricultural and General Workers Union (GAWU) has learnt, in recent times, that the Sugar Special Purpose Unit (SPU) of the National Industrial and Commercial Investments Limited (NICIL) has been disposing of certain movable assets from the now-shuttered Skeldon, Rose Hall, East Demerara and Wales Estates. The estates which had been surreptitiously placed under the watch of NICIL-SPU at the end of 2017 had a number of movable fixed and current assets when they closed their doors.
Information reaching the GAWU indicates that over the last few weeks that NICIL-SPU has been selling, among other things, serviceable tractors, motorcycles, and agricultural implements such as ploughs and harrows. The Union understands that the assets are being disposed of without any resort to competitive bidding. In fact, we disturbingly learnt that many of the items sold would have attracted superior prices had they been placed on auction. If our information is indeed accurate it is a serious cause for concern and we hasten to wonder whether the sale prices have any resemblance to the values that were assigned to the assets in question by the recently-completed valuation exercise that was conducted by Price Waterhouse Coopers (PwC).
Moreover the sale of these useful assets comes at a time when the Guyana Sugar Corporation Inc (GuySuCo) rehabilitation programme has been severely hamstrung by a lack of equipment. Indeed, we learnt too that the Corporation had expressed interest in utilizing the equipment that was lying idle at the closed estates to further its plans to improve production and productivity. Last Saturday’s (March 09) Stabroek News reported GAWU’s President, Komal Chand as saying that the Corporation was operating below its potential.
The GAWU hastens to ask who approved the sale transactions:- was it fully considered by the Board of NICIL and, if so, what justifications were advanced to dispose of the assets in what seems to be a fire sale? The asset disposal, we cannot ignore, comes at a time when rumours are in the air about the transfer of State resources to personalities connected to the current Government. Whether the apparent haste by NICIL-SPU has any connection, we don’t know but, at the same time, we cannot ignore the coincidence. We also learnt too that in recent times that NICIL-SPU has been selling former sugar lands and had engaged in a programme of scrap metal disposal. Given our understanding regarding the sale of assets, we cannot help but wonder whether maximum value was received.
Just recently, the Guyana Times reported about NICIL-SPU imposition of a fee for workers of Skeldon Estate to traverse the backlands to catch fish and to harvest wild vegetables to feed their families who are hard-pressed since the estate closed more than a year ago. The GAWU had expressed its serious concerns about what was reported and had written NICIL seeking consideration about a waiver of the imposed fee. Despite our letter and a subsequent reminder, NICIL, to date, has not even acknowledged our letter.
The apparent conduct by NICIL-SPU also gives rise to serious concerns about the sale of the estates themselves and whether maximum value would be sought. Undoubtedly, NICIL-SPU, as the agent of the Guyanese people, needs to be most concerned with this objective. The Union contends that the assets under the auspices of NICIL-SPU ultimately belong to the Guyanese people and it is in the people’s interest that this identified authority secures the best possible returns for these assets.
Indeed, consideration, at this time, cannot ignore the compelling view that the major sale of state assets should not be pursued due to the Constitutional issue that is presently in the public domain. In fact, until there is clarity on the matter, the Union is of the view, the equipment should be released to the Corporation towards its field rehabilitation programme which is necessary at this time.
