Skeldon’s woes

THE Skeldon sugar factory, commissioned in 2010 and considered the country’s largest investment (US$200M), was described as a modern, state-of-the-art facility in which the future of the sugar industry was placed. In justifying the need for this factory, the then People’s Progressive Party/Civic (PPP/C) Administration informed the nation that Guyana was operating at a competitive level in the international marketplace; and the European Union preferential price, while being reduced overtime, would eventually be eliminated.The decision to undertake this major investment was made by a few persons. The money invested was at the time bigger than the National Budget, and the investment was done without discussion/consultation with stakeholders, including the Parliament — the nation’s most representative and highest decision-making forum.

From the onset, including conceptualisation of the idea, the factory was plagued with problems.
The Guyana Sugar Corporation (GuySuCo), which owns the Skeldon sugar factory, is a state company; which means it belongs to the people of Guyana. Conscious of this ownership and role, it is not unreasonable to have expected that the administration at the time would have sought to have had national discourse and parliamentary consensus on undertaking this investment. Instead, the nation was subjected to a narrative that said non-support for this investment meant being against a specific race. This tactic effectively prevented sane and constructive discussions surviving in the public sphere.

In effect, what the PPP/C achieved was having a blank cheque to do as it like, without feeling it had to be held accountable by the people and the checks and balances in governance being enforced. In so doing, a few made decisions on the cost of the mill, where it would be sourced, and the contractor assigned to the project. When difficulties arose, these said persons presided over the withdrawal of money from the Consolidated Fund for various reasons.

The capacity of the Skeldon mill, from its inception, has shown the availability of land to produce the required canes to sustain it was not there, which not only pointed to poor decision-making, but lent to the perception of unethical practice. Outside of the PPP/C Administration’s failing to respect the fact that an investment of such magnitude required broadest consultation and support, building a factory for a capacity that could not be met, along with failure to put measures in place to meet that capacity, gave rise to suspicion. The technical problems that have confronted Skeldon resulted in millions of dollars being channelled to correct deficiencies, of which various continue to surface, resulting in under-performance. On one hand, the canes are not there to meet capacity; and on the other, the factory has been plagued with technical difficulties, which in both instances saw money being thrown after what is clearly a bad investment.

The future of this investment, and the sugar industry in general, requires national consensus. This could see our elected leaders putting aside partisan political interest and meeting to work towards a realistic solution. With certainty, as the National Budget is being debated, GuySuCo will come up for discussion. It may be important for our legislature to set aside time, if not during the budget debate, after, to address the company as a specific item.

What unites Guyanese on sugar is a common shared history. No demographic can honestly claim that it has singularly built and maintained the industry. It is not to our collective credit as a people to fall prey to thinking that sugar belongs to one group, and making practical decisions about the industry’s future should see only the involvement of a specific group. Similarly, it is not to our credit to suppress discourse for fear of being accused of being racist. And whereas during the PPP/C Administration, when the decision was taken on Skeldon it succeeded at suppressing constructive discourse by playing the divisive card, the APNU+AFC Administration can accommodate some public discourse on sugar’s future.

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