…gov’t mulls removing entity from Agriculture Ministry

THE Guyana Sugar Corporation (GuySuCo) is expected to undergo massive restructuring as part of government’s programme of right-sizing the sugar industry and there is a possibility of the entity being delinked from the Agriculture Ministry, well placed sources have said.
The Guyana Chronicle understands that the administration is focused about the transition taking place within the sugar industry in particular, with authorities leaning towards having the corporation managed by technical persons.

On Friday, Minister of State Joseph Harmon said the restructuring was already taking place, pointing to the fact that the Chief Executive Officer (CEO) Errol Hanoman has resigned. But said further changes are expected once Cabinet receives some critical information. “At the level of Cabinet, we are waiting on some information that will allow for decisions to be made as to how the board will be restructured, how the management of GuySuCo will be structured,” Minister Harmon said. He assured that within a short period of time, a public statement on the “additional changes” will be made public.

The administrative changes will complement the operational changes that have already taken place with the scaling down of the industry in keeping with the State Paper presented to the National Assembly in May 2017 by Agriculture Minister Noel Holder.
The ‘new’ GuySuCo consists of only three estates – Blairmont on the West Bank Berbice, Albion-Rose Hall in East Berbice and the Uitvlugt-Wales in West Demerara. They completed with factories and are being supplied with cane from five locations.

The State Minister at the time was addressing journalists during his post-Cabinet media briefing at the Ministry of the Presidency on Friday.
In his opening remarks, he noted that Cabinet was briefed about the meeting between the government and the two unions in the sugar industry – the Guyana Agricultural and General Workers Union (GAWU) and the National Association of Agricultural, Commercial and Industrial Employees (NAACIE).

Minister Harmon said, Cabinet was informed that during the meeting, the unions made several proposals that would contribute to the industry’s return to viability from their perspective. “These included the infusion of private capital through partnerships, the issuance of bonds and other investment devices and through funding under the Guyana Green State Development Strategy,” he explained.

He said too that the unions agreed that privatisation was an option to be pursued, but urged that maximum value be sought for assets through the sale of the estates. GAWU and NAACIE had also urged government to ensure that the rights of sugar workers are guaranteed under “any new arrangements” within the industry. Additionally, the unions requested that lands for agriculture be provided to the displaced workers.

Questioned as to how many ex-sugar workers have signalled their interest in having lands for agricultural purposes, Minister Harmon said though he is unable to give “specific details,” during his interaction with workers at the now defunct Wales Estate, some had requested lands for the purpose of farming. However, he said a determination will be made following the completion of the evaluation of GuySuCo’s assets currently being done by PricewaterhouseCoopers (PwC).

“They have started the work of making a full survey of all the assets of GuySuCo, including the lands and once that is done, then we will be in a better position to determine who gets what and how much of it they will get. We have to have a clear valuation of these things as well, so we don’t just say, you take this and you take that. It has to be done in a structured way, and that is what we are doing,” the State Minister explained.

PwC has been ranked as the most prestigious accounting firm in the world for the last seven consecutive years. It is presently conducting the valuation of all assets under the control of GuySuCo, in addition to providing other advisory and financial services.

After the valuation exercise, PWC will develop an investment prospectus and will, through the Special Purpose Unit (SPU), distribute to all interested investors. PWC has been tasked with ensuring a level playing field for all interested parties and stakeholders.

Cabinet has agreed that government representatives will continue to engage the two unions so that the best possible decisions could be made with regard to the welfare of the sugar workers who are affected by the economic and structural adjustments of GuySuCo.