Burrowes voices Ramotar’s concerns about GuySuCo’s procurement systems, employees’ welfare
– says tendering processes need greater scrutiny
– structures systems within new manual to address anomalies
AT a meeting convened last Friday with senior GuySuCo officials – senior management staff and those from the Finance and Procurement Departments respectively – and union representatives, Director of GuySuCo, Keith Burrowes sought to explore various options towards the enhancement of the corporation’s procurement system to enable transparency.
This has been among the burning issues that have been plaguing the industry and inhibiting optimal production, said Burrowes, who intimated that, since he became a member of the Board in 2008, Donald Ramotar has been vociferous about transparency and accountability in procurement and management practices, because the unaccountably high overheads were impeding affordability for optimal workers’ benefits.
Burrowes indicated that while GuySuCo has a procurement budget of over twenty billion dollars ($20B), since assuming the position of Chairman of the corporation’s Central Tender Committee, he discovered the presence of an outdated procurement manual, which was inconsistent with Government of Guyana Procurement Policy.
This, he said, created opportunities for breaches in the procurement system. However, this has now been reviewed and structured to ensure greater accountability and transparency within the procurement processes.
The sugar industry and GAWU are inextricably linked, and Ramotar has once served that union as International Affairs Secretary and had, during that period, been extremely militant in championing workers’ rights in general, and sugar workers’ rights in particular.
Thus the sugar industry and its workers are extremely close to his heart and Burrowes indicated that, at every Board meeting, Ramotar has been very vocal in the issues of sustaining the sugar industry and enhancing workers’ benefits.
The anomaly of GuySuCo’s management officials being allowed to accept gifts from suppliers, which was documented in the old manual, was highlighted by Burrowes, who deplored such practices as lending to dishonest acts and promised that the new manual would place restrictions on such activities, among others that the Board considers impediments to transparency and accountability.
As such, he warned that every responsible officer in the industry would be provided a revised manual, for which they would have to sign in efforts to forestall excuses of lack of knowledge if they are found in breach of the rules.  If culpable, Burrowes warned that they would be sent home forthwith and publicly blacklisted.
He said the revised manual would need to be further reviewed and amended to include a user-friendly set of guidelines and a standardized form for easy facilitation of procurement procedures for the acquisition of all goods and services.
According to Burrowes, while there has been much focus on production, there has been neglect of oversight initiatives to reduce overheads, because the Board is convinced that, with more efficiency and a holistic approach to management, the massive expenditure for maintenance and inputs could be drastically reduced, which, once the Skeldon factory becomes fully operational, could lead to optimal production levels and, consequently greater viability in the industry, which will automatically eventuate in increased benefits to workers.
In addressing the Board’s role in this venture, Burrowes noted that most persons who agree to serve on boards are not necessarily experts in the area and are extremely busy people. GuySuCo is quite a large industry and studying all the pertinent documentation would be near-impossible.
He added that while the Board has focused on production, which experienced major setbacks, it has decided to explore alternatives to reduce expenditure costs.  Thus, he noted that as a result of prudent procurement management, the entity was able to save hundreds of millions of dollars.
He was adamant that provision of goods and services need to be reviewed to determine whether it serves the Corporation better to outsource or provide in-house, citing instances of trucks that were once owned by GuySuCo that are now privately owned and rehired for the use by estates.
He also made reference to a concrete bridge that was built at Blairmont that does not allow for the passage of punts; and was unapologetic in stating that the person responsible should have been severely sanctioned.  Burrowes related that the board is convinced that cost benefit analyses could curtail wastage and dishonest practices.  He again stressed the importance of a procurement system that could stand up to scrutiny, where there could be no perception that the process is skewed in favour of any one individual or entity.
He also stressed the concern of the board about the security of engineers’ estimates and the need to ensure that no opening is provided for (legitimate) criticisms from anyone.
Burrowes was severely critical of Booker/Tate and other contractors who drew super-salaries without providing the requisite services for which they were fleecing the Corporation, and he advised stricter supervision of future contracts, as well as the provider of the services because, upon keener scrutiny, it was discovered that Booker-Tate had no in-house capacity and was thus out-sourcing its contractual obligations to GuySuCo.
For greater efficiencies in procurement and maintenance Burrowes suggested bulk-buying and locking-in orders for goods, as well as recycling parts.  However, he warned that the latter be done with consideration given to occupational health and safety.
He also suggested holistic approaches and consensual methodologies in management for greater efficiency throughout the sector, because, while an estate’s limit is $2 million, records show procurement of in excess of $100 million per year.
Subtly suggesting that the extant system lends itself to contract-splitting, which could negatively impact the industry’s viability, Burrowes once more reiterated the need for cost benefit analyses.
Special attention was placed to unions as they have representatives who sit on respective estates’ tender committees. Burrowes pointed out that they often do not understand their role in the procurement process due to the absence of an operational guideline resulting in them employing a conventional role.
In addressing this, he suggested capacity building for key persons including the union representatives and the development of a user-friendly guideline to target the respective estates’ ender bodies.
Seelall Narine, General-Secreatry of GAWU, welcomed the initiative of Keith Burrowes and declared that procurement processes and inflated expenditures at the expense of production and workers’ benefit have long been burning and contentious issues with GAWU.  He said that, while there
is ‘spending like crazy’, many costs are unrelated to the workers or the sugar industry.
However, he warned that the wrongdoing is cleverly organized and there is urgent need for more efficient oversight, which the restructured rules in the revised manual will facilitate to some extent; as well as enhance efficiency within the management and production systems.
He pointed out that the industry has in-house experience, expertise, efficiencies, capabilities and capacities that are sidelined by management in favour of outsourced personnel, who often do not deliver an optimal quality of service, to the detriment of the sector.  A successful intervention by one Panday was one example cited, as well as old punts that have been cleverly recycled for various usage quoted as another.
GuySuCo employees are legendary for their competencies, hard work, commitment to a work ethic, as well as their innovative solutions to problems that emerge as a result of a multiplicity of causes – not least the outdated equipment that have existed since the colonial era.
GuySuco has also delivered various services to respective communities, such as drainage and irrigation, which in itself carries a tremendous cost factor, and the suggestion was that Government should defray or mitigate these costs, if even through tax incentives.
Burrowes concluded with the observation that the industry could once more become remarkably viable if there is extra vigilance, loyalty, and commitment to the industry; and he optimistically forecasted a production of in excess of 300 tonnes next year.

Last Friday’s meeting at Blairmont is part of a series of meetings being conducted by Burrowes across the sugar belt, following visits and meetings already held at the Enmore and LBI sugar estates.

It should also be noted that the ongoing process of reviewing the procurement procedures commenced almost a year ago and, there will be another meeting this week (slated for November 9th) with all the stakeholders aimed at finalzing the manual.