The GAWU could not have ignored the many media reports that have appeared, over recent times, regarding what appears to be the wanton sell-out of assets linked to the sugar industry. From the media, we have learnt, dismayingly, for the first time about what appears to be a fire sale of the industry’s assets. It should be recalled, not too long ago, that the GAWU had drawn attention to quick and cheap sell out of several movable assets from the now shuttered estates. At that time, our Union pointed out given, the then and now, the apparent unconstitutional status of Government, the assets in question should be released to the GuySuCo with a view to accelerate and further rehabilitation works at the operable sugar estates.
It appears, if the media reports are indeed accurate and we have little reason to doubt their authenticity, that the programme to dispose of the sugar industry’s assets has accelerated in recent weeks. What is even more worrying for us, is that the masses appear none the wiser regarding what seems to be the wholesale sellout of valuable items that still have value to the sugar industry and its operations. It did not miss us too that the situation is unfolding when President David Granger is saying he wants the sugar industry to thrive. Certainly, moving in that direction requires the industry to be supported and not having items it requires being sold at what appears to be basement prices. It should not be forgotten too that Minister of Finance, Winston Jordan in responding to questions regarding the sale of the Skeldon factory, is quoted in the August 15, 2017 Guyana Times, as saying “[t]his (sale) has to be done in a very transparent process, because this Government prides itself on accountability and transparency”. We also recollect that former Minister of State, now Director-General of the Ministry of the Presidency, Joseph Harmon, is reported in the July 24, 2018 Kaieteur News as saying with respect to the divestment of sugar assets that “…Government will not sacrifice accountability and transparency in the process”. We hasten to ask, what has happened to those commitments. Dishearteningly, we are reminded, yet again, that actions are indeed louder than words.
As we consider the divestment policy regarding the sugar industry’s assets as well as utterances by the Finance Minister, we could not help but notice a Demerara Waves report of June 19 titled “Investors walking away from ‘scrap iron’ sugar estates – Finance Minister”. According to the report, Minister Jordan told a meeting he had in Bartica that the estates up for sale were scrap iron. The goodly Minister told his audience “[t]hey have been there since the early 20th century or before…”. It appears to us, that the Minister is not really acquainted with what he was saying. While all the sugar factories save and except Skeldon, were built many years ago, their components, over time, were rehabilitated or changed altogether in keeping with advancements in technology. It is, for us, hard to believe that the Minister really believed that all the original equipment installed whenever the factories were constructed are the same equipment being used on to now.
The Minister also charged that “[v]ery little maintenance has been done over the last fifteen to twenty years…”. This statement seems absurd, in our view. Considering that in the period (1999 to 2019), the Minister referred to, the sugar industry on several occasions saw its production rising over 300,000 tonnes per annum. Moreover, it was those same factories that saw the industry producing over 230,000 tonnes in 2015 which the Minister and his colleagues patted themselves on the back for a job, ostensibly, well done. Moreover, even the Sugar Commission of Inquiry (CoI), which comprised several persons with factory knowledge, did not choose the phrases the Minister chose to employ. In fact the Sugar CoI though recognizing that the factories had difficulties pointed that with certain investment they could generally be put right. The CoI’s conclusions are a far way from Minister Jordan who reportedly told his audience “the investors… would have to ‘rip up’ the existing equipment and construct new factories”.
What’s even more disconcerting is that the Minister’s statement comes just days after the National Commercial and Industrial Investments Limited (NICIL) announced it was about to close a deal with a consortium of investors regarding Rose Hall Estate. A June 03 Demerara Waves report informed that Managing Director of PricewaterhouseCoopers (PwC) said “…the investors plan to continue sugar production and manufacture inputs for cosmetics and liquid sugar”. It would seem to the rational mind that the investors, whoever they may be, would have considered all the factors and thereafter submitted their proposal. That submission, in our view, would have logically taken account of the equipment and its potential in keeping with the plans of the interested party. It appears to us that the Minister did not really and fully consider what he was telling his audience or was it a case of petty politicking. Generally that the Minister did not really think through its remarks at the meeting as another aspect has landed him, it seems, in hot water.
Obviously, the Minister has decided to blow hot air and vent at Bartica about his Government’s ill-considered decisions in the first place. Had the factories remained operable, rather than shutting down, then the decision to sell would have seen a better response in our view. Similar views, we recollected, were also expressed in a report which appeared in the October 01, 2018 Guyana Chronicle as well. There we saw, PwC Chief, Mr Baghaloo apparently telling prospective investors “I fully understand your concerns, re buying a factory that is not a going concern and most importantly, a factory that has been closed for a long period of time”.
The divestment process, like the Government all-round sugar policy, is filled with obvious holes and, it seems, was not well thought out. Such a situation is not in the interest of the Guyanese people as it is their assets, purchased after the hard work and efforts of past and present generations of sugar workers that is being sold, from all appearances, for next to nothing. Nevertheless, in view of the recent decision of the Caribbean Court of Justice (CCJ), it is our firm belief, that any decision regarding the sale of sugar assets, and in fact any national asset, cannot be deemed proper.
