THE second phase in the process of selecting an accounting firm to value the assets of the Guyana Sugar Corporation began on Monday, a statement from the National Industrial and Commercial Investments Limited’s (NICIL) Special Purpose Unit (SPU) said.
According to the statement issued Monday, through Public Relations Consultant Alex Graham, three firms made presentations before the NICIL/SPU evaluation team at the Marriott Hotel, Georgetown.

Head of the Special Purpose Unit (SPU), Colvin Heath-London, disclosed that of the four firms invited to participate in a restricted tender, three met the October 30 deadline for submissions. The three firms, PriceWaterHouseCooopers, Ernst & Young, and Deloitte, all made presentations to the NICIL/SPU evaluation team at the Marriott on Monday. KPMG which was also invited to tender did not make a submission by the deadline.

Speaking after the presentations Heath-London said: “The presentations were all very engaging and the firms all have the international and regional experience as expected. Each of the firms included persons with substantial experience with sugar diversification and privatisation in the Region, and as such the dialogue was rigorous and engaging.”
The SPU is expected to announce a selection by mid-December and the selected International Services Provider would be conducting the valuation of all assets related to the estates up for privatisation and diversification, in addition to advisory, financial, and other related services.

Heath-London also indicated that the other preparations are on track to have the assets ready for privatisation and or diversification. The SPU has been meeting with the management of GuySuCo as well as with other industry stakeholders including the unions, Guyana Agricultural and General Workers Union (GAWU) and the National Association of Agricultural, Commercial, & Industrial Employees (NAACIE).
In letters to the SPU, after the meeting, both GAWU and NAACIE expressed support for the SPU’s efforts to keep the estates operational in the interest of the economy and the workers.

GAWU’s General-Secretary, Seepaul Narine, said “From this encounter, it was heartening to have learnt that the SPU holds the view that the sugar estates identified for closure and divestment are capable of overcoming their difficulties and can be restored to viable and profitable state. We also believe that such feats are attainable with a different approach being taken towards the industry. The GAWU strongly contends that the industry’s success lies in its transformation from sugar to sugar-cane industry. In such circumstances, the entire cane plant would be utilised to produce several products. Similar ideas, we recognise, are also held by the SPU.”

The unions also expressed concern over the reported moving of equipment from the estates set for privatisation and diversification and urged the SPU to quickly safeguard the assets to ensure the best possible deal for these estates and the workers and communities they support.

NAACIE General-Secretary, Dawchan Nagasar said, “In light of the interaction with SPU, NACCIE is of the view that the estates that were identified for closure/privatisation/diversification are to be properly maintained because of recent, GuySuCo has been moving a lot of assets from those estates, that is, identified for closure to those estates that GuySuCo will keep. Also, those estates that are to be closed, the fields and other areas have been deliberately abandoned and left to deteriorate.”
Dawchan Nagasar added that, “The SPU should ensure that this practice is halted immediately. As you are aware, these assets are very important for the survival of the estates.”

The SPU also met with executives of the Private Sector Commission (PSC). The Chairman of PSC, Edward Boyer said, “we were very impressed with the head of the SPU during the meeting we had with him. In terms of the SPU’s approach to divestment and diversification, we believe that the PSC and the SPU are on the same page.”

Boyer added that, “We just cautioned the SPU that there should be full accountability and assessment by a credible international firm, of the assets of the GuySuCo estates that are being put up for privatisation and diversification. This assessment should include the goodwill and all of the community services that are provided by the estates. We need this to be done up front and not repeat the Wales experience, where the estate was closed and then an assessment was being [sic] done.”
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