THE rice industry has come under sharp focus in recent weeks since the new Government disclosed it would have to find some US$15M to pay rice farmers as the monies accrued for that payment under the PetroCaribe initiative had been diverted to other projects by the previous PPP/C Administration.In the meantime, the new Government has signalled its intention to accept the resignations of a number of senior Government functionaries, including Jagnarine Singh of the Guyana Rice Development Board (GRDB). The announcement was made by Minister of State, Joseph Harmon who, during his post-cabinet press briefing this past week, announced a major restructuring of the rice development board.

He accused the GRDB of being complicit in the maladministration of monies meant for the sector. The previous Administration expended the money on projects such as the Hope Canal. Minister Harmon was asked if the now bare PetroCaribe Fund would be replenished by Government, and he told media operatives this would be difficult, but the monies spent will be subject to an inquiry.

On the matter of the GRDB, Harmon reported that Cabinet had been briefed on the composition of the board, “and the actual management of the rice sector.”
He reported that Cabinet was of the view since monies would have to be plugged into the sector immediately; this will have to be accompanied with a formula as had been the case with the recent bailout of the sugar sector.

According to Harmon, “We will not be putting money into the hands of people who have been there and diverting it to all different types of projects.”
He told media operatives that Jagnarine Singh indicated a desire to demit office, “and we will accept his resignation and wish him well.”
Government, Minister Harmon said, would be hard pressed to justify handing over monies to the same people.
As it relates to the other members on the GRDB, Harmon said, “We have to clean up the board as well.”
He made it clear that it was not a matter of reshuffling persons but rather replacing the GRDB Board altogether.

Harmon also used the opportunity to announce that Finance Minister, Winston Jordan will next week be heading a delegation to neighbouring Venezuela with a view to seeking an extension on the concessionary arrangements under which oil is purchased and rice sold between the two countries.

Harmon noted that the Venezuela market represents some 36 percent of all of Guyana’s rice exports and as such was an important trading partner.

The existing PetroCaribe arrangement between Guyana and Venezuela comes to a close in October and according to Harmon, the Guyana delegation headed by the Finance Minister will have a strong representation from the rice sector.