…believes grounds being ‘fertilized’ to sell factory

THE Guyana Agricultural and General Workers Union (GAWU) has voiced its objection to reports of the Government’s plan to divest the Skeldon Sugar Factory; the union is calling for a transparent approach to this development.

GAWU had, in the past, called for the temporary closure of this factory. The union noted in a statement on Tuesday that its representative on the Board of the Guyana Sugar Corporation (GuySuCo) is unaware of the plans put forward regarding this factory, and has expressed the view that the grounds are being ‘fertilized’ to sell the Skeldon factory.

GuySuCo Board Chairman Dr. Clive Thomas was quoted last weekend in the Stabroek News as saying that the authorities have already spoken to potential buyers, and are awaiting the go-ahead from Government to continue those discussions.

According to GAWU: “Neither has he been requested to express his view on these ‘options’. Apparently the Board’s name is being used to illustrate that consultation is taking place and a democratic procedure is followed”.

The union questioned whether all board members are aware of the proposal. “Most certainly, the workers of Skeldon and their unions are left in the dark”, the union said.

In response to reports that Skeldon estate is in a “deplorable” state, GAWU has said that such reports carry no merit. The union pointed to GuySuCo’s 2015 Annual Report, which said that the Skeldon factory’s sugar production of 39,158 tonnes surpassed the 2014 actual production, and was the highest production since the new factory was commissioned in 2009.

GAWU said the report noted that the factory’s performance improved considerably, and questioned the maintenance of the factory overtime as a means to justify its proposed sale.

GAWU questioned GuySuCo’s move to engage Wartsila in the discussion regarding the future of the factory, “especially since its known area is power generation, and we are unaware of any track record of its credible knowledge with respect to sugar factories”.

It also called for a breakdown of the $12B sum which was mentioned as the money needed to fix the factory. “GAWU does not support the divestment of the Skeldon factory and its rich and arable land – a part of our patrimony”, the union said. It said that the move must entail knowledgeable and responsible evaluators, consultations with the workers and their unions, as well as discussions involving the relevant agencies of the country.

GAWU pointed out that an important element to Skeldon’s success relates to the return of the co-generation plant and the adoption of an appropriate power purchase agreement (PPA), as was recommended by the commission of inquiry (CoI) and sent to be approved by the Government.

“But no action has been taken to return this important asset to GuySuCo for the past eighteen (18) months, yet another puzzling factor”, the union said.

GAWU has said that divestment of the Skeldon factory will have negative repercussions for the industry, the country, and relevant stakeholders, as it called for the move to be discontinued.

The Skeldon factory, touted to produce 110,000 tonnes of sugar annually, has been riddled with costly problems from the inception. The US$200M factory has been struggling to perform since its commissioning in August 2009, and has never being able to grind the promised 350 tonnes of cane per hour. Instead, it has demonstrated that it can grind no more than 200 tonnes of cane per hour.

The factory was built under the previous administration as part of a wider plan to reverse the fortunes of the industry. Soon after its commissioning, GAWU had criticized the PPP Administration over the factory, as it called on the then Bharrat Jagdeo government to come clean on the operations of the factory.

In 2010, GAWU called for the closure of the factory until its defects were fixed, and noted at the time that its low annual production was far below its intended target.