SOME $3.8 billion was allocated to the Guyana Sugar Corporation (GuySuCo) and a further $5.4 billion to the Guyana Rice Development Board (GRDB) prior to the passage of Budget 2015.Finance Minister Winston Jordan in a written explanation to queries from People’s Progressive Party/Civic (PPP/C) Member of Parliament (MP) Irfaan Ali told the House that the monies for both agencies were

sourced from the Consolidated Fund.
The payments made to the GRDB were charged to Agency 90—Public Debt, Programme: 901—Public Debt, External Public Debt Unfunded Principal Line Item: 9010158—Venezuela (PDVSA and LA CASA).
These funds, Mr Jordan said are reflected under the External Public Debt (Principal) because Guyana’s debt to Venezuela is repaid principally through the value of the rice and paddy shipped to the neighbouring country.
For GuySuCo, the support was charged to Agency 21, Ministry of Agriculture; Programme 211, Ministry Administration; Line Item 6321, Subsidies and Contributions to Local Organisations.
Minister Jordan explained that the support to GuySuCo was released in two amounts on two different dates. He pointed out that the two payments of $1,858,500,000 and $3,577, 216,020 were transferred to the GRDB through the Bank of Guyana on June 25 and July 24, 2015.
Ali enquired of the minister what additional support was provided to the rice industry from the amount of $5 billion, other than mere payments to farmers and millers for the rice and paddy they had produced and supplied.
Mr Jordan informed the House that no additional financial support has been provided beyond the sum of $5,435,716,020 paid to farmers and millers to cover the costs for white rice and paddy shipped to Venezuela.
The sum for GuySuCo was released by the Ministry of Finance on June 17, 2015 to the Ministry of Agriculture and was paid over to the corporation on June 22, 2015 respectively.
Meanwhile, in another set of questions, Ali asked of Mr Jordan which funding source other than the PetroCaribe Fund will be utilised to finance the $23 billion allocated to the rice industry, to which he responded the Consolidated Fund.
The amount of $23 billion was allocated under Budget Agency 90—Public Debt, Programme: 901—Public Debt, External Public Debt Unfunded Principal Line Item: 9010158—Venezuela (PDVSA and LA CASA).
Minister Jordan also noted that the amount is reflected under the External Public Debt (Principal) because Guyana’s debt to Venezuela is repaid principally through the value of the rice and paddy supplied to the neighbouring country.

By Tajeram Mohabir
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