As the industry slides downwards, on several occasions this year, we lamented and expressed our deep worry regarding the conflict between NICIL-SPU and GuySuCo. The disagreement between these two (2) state-operated agencies became very heated and the animosities spilt over into the media. As we conclude 2019, it appears to us, that while the public spats may have abated, at least for now, the conflict is no closer to being resolved. The continued withholding of sugar bond financing from the GuySuCo indicates that all is not well and relations between the bodies have not healed. This is not a welcome development and can lead to nothing positive for the sugar industry.
Also of concern to us, is that, so far, though roughly a quarter of the bond has been disbursed, no tangible progress has been seen. We recall that the Leader of the Opposition, Bharrat Jagdeo had previously expressed concern about the lag between implementation and the securing of the funds and the heavy interest costs that would have to be borne in the intervening period. From all appearances, the Opposition Leader was right as NICIL, according to the media, will channel to bondholders several hundred million dollars in interest while the industry’s viability, it seems, appear nowhere on the horizon. We also share the concerns, that were expressed by NICIL regarding the probability of default, considering that the bond has essentially mortgaged the assets of the Guyanese people.
The entire imbroglio that is unfolding, we see as yet another manifestation of the Administration’s mis-adventure and, undoubtedly, poor policy-making regarding the sugar industry. As we well know, this has been a period, in which we have seen the largest retrenchment exercise in Guyana’s history and a period that has brought on tremendous hardship and heavy burdens for thousands of our fellow citizens, young and old.
