By Ariana Gordon

GOVERNMENT is looking at the “participatory privatisation” of the Guyana Sugar Corporation (GuySuCo) following the revelation that the country’s lone sugar company is bankrupt.According to reports, the company has $82.2B in accumulated debt. An executive summary compiled by Commissioners of the recently concluded Commission of Inquiry (COI) into the operations of the sugar industry, and reviewed by Cabinet has revealed that the company is insolvent.
“GuySuCo as a company is insolvent; we now have to figure how to pull back GUYSUCO,” a source close the Commission told the Guyana Chronicle yesterday.

THE FINDINGS
The findings of the COI were submitted to Permanent Secretary in the Ministry of Agriculture, George Jervis in October.
The company’s insolvency was highlighted to Cabinet members (minus President David Granger, who was in Malta attending the Commonwealth Heads of Government meeting) on Saturday during a meeting with members of the COI, including its Chairman, Vibert Parvatan, at the Arthur Chung Convention Centre.
Government had announced that before the COI report could be made public, Cabinet members will participate in a ‘special retreat’ to discuss the findings and recommendations.
The Guyana Chronicle has been given to understand that the recommendations made by the COI will be subject to additional discussion upon President Granger’s return, at the end of which a new chapter will be opened, with the aim of reviving the struggling sugar company.
“Cabinet has to meet to discuss how to pull GuySuCo back from this,” the source said. The entire report has not yet been analysed, but discussions were had, based on the Executive Summary put forward by the commissioners last weekend.

GOV’T SUBSIDY
GuySuCo has enjoyed a government subsidy of $11.9B so far for the year, and is expected to receive an additional $12B in subsidy come next year.
The ailing sugar company is in dire need of help, and it is left up to the government to charter a course to save it.
Notwithstanding the troubles facing the company, there has been a marginal decline in the cost of producing sugar, while an increase in production is evident.
“We are likely to have 214,000 tons of sugar this year, the highest since 2004,” the source said. The marginal reduction in the cost of production will increase revenue in order to contribute to Guyana’s foreign exchange earnings.
“The future of the industry is at stake, and thus careful consideration must be taken to deal with such a sensitive matter,” said the source.
The sugar industry gives Guyana a large chunk of its foreign exchange earnings, and this will be at the forefront of subsequent Cabinet meetings on the industry.

PRIMARY PRODUCE
Sugar is one of the country’s primary agricultural produces, and thousands of sugar workers depend on the industry to maintain their families. As such, government is now forced to make life-and-death decisions with regard to the way forward for the sugar industry, given its current state of insolvency.
Asked whether some estates would be closed, given the company’s inability to pay its debts, the source said that talks are underway to have a “participatory privatization partnership” with cane cutters.
The cash-strapped sugar company’s former Chief Executive Officer (CEO) Rajendra Singh and Board were sent packing in June by the APNU+AFC-led administration for losses and wastage. An Interim Management Committee (IMC) is headed by Errol Hanoman, and Paul Bhim.
Last year, government pumped $6B into the sugar company, while this year, some $11.9B has been spent thus far.
The Corporation had requested a $16B bailout package earlier this year.