… says NICIL’s tactics placing future of GuySuCo at risk

GUYANA Sugar Corporation (GuySuCo) has made public a list of records submitted to the National Industrial and Commercial Investments Limited’s Special Purpose Unit (SPU), amid claims that the lack of critical information from GuySuCo’s Administration was making it difficult for the four ‘closed’ sugar estates to be evaluated and marketed.

At a press conference on June 3, 2019, Head of the SPU, Colvin Heath-London and PricewaterhouseCoopers (Jamaica) Managing Director Wilfred Bhagaloo bitterly complained about GuySuCo’s slothfulness in the provision of important information on the Skeldon, Rose Hall, East Demerara (Enmore) and Wales Estates.

But GuySuCo, in a strongly worded corporate statement on Wednesday, not only provided a list of documents submitted to NICIL/SPU, but said the agency’s “slothfulness, less than credible ‘divestment’ tactics’ have now placed at risk the future of the sugar corporation.
The list of records dates back to November 11, 2017 when the first set of documents were sent to NICIL/SPU, with the last set of documents sent on June 13, 2018. These documents included: Fixed Asset Registers for Enmore, Rose Hall and Skeldon Estates; Financial Statements 2012-2016; Fixed Asset Registers for Rose Hall, Skeldon, Enmore and Wales Estates; Memorandum and Articles of Association Certificates of Incorporation and Continuation; and Operating statistics for the Enmore Estate actually realized for 2016 and 2017.

The provision of the list of records contradicts both the statements of the Head of the SPU and PricewaterhouseCoopers Managing Director Wilfred Bhagaloo, who had contended that only audited financial statements were submitted to NICIL/SPU.

“The challenges that we have auger primarily around information that we need from GuySuCo, financial information for each of the estate and to date I have not received that. I have received the audited account for GuySuCo, that’s one thing; I need information for each of the estates, the valuators need information on major equipment,” PricewaterhouseCoopers’ Managing Director told reporters. While admitting that PricewaterhouseCoopers never had contact with GuySuCo’s Administration, Baghaloo said he wrote Cabinet seeking an intervention based on complaints from NICIL/SPU.
But GuySuCo said Bhagaloo had no ‘business’ addressing issues relating to GuySuCo in the public. It explained that PricewaterhouseCoopers was recruited as the consulting firm by the SPU to conduct the valuation of GuySuCo’s estates, and should have stuck to it responsibilities.

“Mr. Wilfred Bhagaloo was legally contracted as the ‘lead’ Consultant; as such, it is outside of the remit for Mr. Bhagaloo or PricewaterhouseCoopers to be discussing the Corporation’s business in public, more so in the media, without its permission,” the sugar corporation said. GuySuCo said since 2018, Bhagaloo has thought it fitting to speak on behalf of the sugar corporation. “Mr. Bhagaloo and PricewaterhouseCoopers were selected to conduct the valuation based on what was perceived to be the distinguished reputation; relative to professionalism and integrity with which they would have been expected to treat with information to which they have become privy, by their privileged position with companies and organisations. It is alarming, that a reputable firm such as PWC would allow its name to be discredited, judging from its extraordinary enthusiasm to participate in activities along with NICIL-SPU, even though PWC is aware that the core of its business is hinged on its professionalism and the integrity with which it conducts its business,” GuySuCo said.
According to the sugar corporation, Bhagaloo has placed his personal relationships above the professionalism of PricewaterhouseCoopers, in addition to participating in acts which are injurious to GuySuCo and its business.

GuySuCo, in its statement, did not spare NICIL/SPU. The corporation accused NICIL and the SPU of crossing their boundaries and interfering in the internal operations of GuySuCo. It said the “confusion” started with SPU and now has consumed NICIL, as to its role.
“NICIL established the SPU to divest the assets of Skeldon, Rose Hall, East Demerara (Enmore) and Wales estates, however, at some point, NICIL indecorously assumed the role of the Ministry of Agriculture, the Government agency with responsibility for GuySuCo; further, in an attempt to legitimise this position, NICIL had even speciously appointed its own Board of Directors in March of 2018, with Mr. Colvin Heath-London as its Chairman. This decision was quashed by the Government, however, NICIL has never abandoned the misconception,” GuySuCo said.

For the record, GuySuCo reminded that it is an independent corporate agency, by Law, according to the Company’s Act, is neither a department, unit or owned by NICIL.
Turning its attention to the $30B bond, GuySuCo said NICIL’s is misdirected and continues to put the Sugar Industry and the future of the sugar corporation at risk.
“NICIL/SPU’s single role was to divest GuySuCo’s assets from the Skeldon, Rose Hall, East Demerara (Enmore) and Wales estate, however, due to its slothfulness and less than credible ‘divestment’ tactics it has now placed at risk the retooling and restructuring of GuySuCo as it is clearly outlined in the Government of Guyana (GOG) State Paper on the Future of the Sugar Industry,” the sugar corporation said.

It said NICIL/SPU having been unable to divest the assets in a timely manner, convinced its principals that the Bond was an appropriate alternative as an interim financial arrangement. It noted too that the divestment process is now approaching its second year and NICIL/SPU has not executed one significant investment.

GuySuCo is now of the view that the recent press conference held by London was intended to distract the public from the fact that it has not achieved its mandates.

“As a matter of fact, in an attempt to extend the life of the SPU, having been created for the specific purposes above and within a particular timeframe; the agency has now assumed the role and operates as a proprietor and landlord. This is totally inconsistent with its intended purposes,” the sugar corporation contended.

It reminded that NICIL/SPU is merely a custodian of the Skeldon, Rose Hall, Enmore and Wales assets of GuySuCo for the specific purpose of facilitating divestments as envisaged in the State Paper on the Future of the Sugar Industry. The proceeds from the sales would be remitted to GuySuCo in order to fund its Strategic Plan, it said while adding that NICIL/SPU ought not to be the beneficiaries.

“GuySuCo is still awaiting a full report from NICIL-SPU on all and any transaction(s) which were completed or are in progress in relation to its immoveable and moveable assets, including the scrap metals, machinery, plant and equipment. GuySuCo would also like to be informed by NICIL of the extent of the valuation done by PWC. Were all four estates including cultivations and other assets valuated?”

The $7B provided to GuySuCo by NICIL from the bond was used for its intended purpose, the sugar corporation said while lashing out at NICIL for alleging that the funds were unaccounted for.

“The Corporation is appalled by these statements since NICIL is well aware that GuySuCo has several layers to ensure financial accountability. These include; the procurement process by use of a credible tender process and annual financial statements among others. NICIL/SPU is once again invited to review the company’s financial records within the legal requirements,” GuySuCo said.

GuySuCo admitted that it has requested duty free concessions to purchase appropriate vehicles to conduct its business but made it clear that there was no request for duty free concessions for SUV’s or luxury vehicles as reported. It explained that vehicles include; double and single cab pickups for agricultural/farming use.