–flaws causing delay in payments to Guyanese millers and farmers, says minister

THE contract that was inked by the Panamanian and the then A Partnership for National Unity + Alliance for Change governments for the supply of rice was corrupt, Agriculture Minister Zulfikar Mustapha has said.

Minister Mustapha, in a recent interview with this newspaper said that while the Panamanian Government has acknowledged the $ 1.9 billion debt, payments are delayed due to the flaws in the agreement that was made in 2018.

“The previous government would have failed, because when they sent the first shipment and they were not paid, they should have made representation like we are doing now,” Minister Mustapha said.

He added that the government in Panama has been changed since the agreement was made, and the new regime is working to correct the errors that were made in the 2018 contract.

“We agreed that were was some corruption in the deal; when that took place there was another government in Panama, and the government would have changed. This government, luckily, accepted that they will pay the debt in full.”

However, the minister is optimistic that a payment will be made on the four-year-old debt. He noted that a commitment was made during a recent meeting with President Dr. Irfaan Ali and the President of Panama, Laurentino Cortizo.

“They have accepted that they owe us; the President, not so long ago, had a discussion with his counterpart, and I am hoping that we can have an initial payment from them,” Minister Mustapha said, adding:

“The process is moving forward, and, hopefully, we can receive some payment from Panama.”

MILLERS AND FARMERS
The delay has put a strain on the many rice millers who would have supplied rice to the Panamanian market.

“Generally, there are some rice millers who are owed, and they owe some of the farmers who would have supplied their paddy in that time,” Minister Mustapha said.

“I’m hoping that when we receive the money, and if we receive the payment, the small farmers will receive also their payment,” he added.

Recently, two Essequibo rice millers moved to the High Court in order to secure the payment of millions of dollars owed to them by the Guyana Rice Development Board (GRDB) for the supply of rice to the Panamanian market in 2018.

In 2018, the governments of Guyana and Panama renewed their agreement for the supply of rice to the lucrative Panamanian market for 2019.

Minister Mustapha reiterated that if the APNU+AFC Government had shown an interest in the farmers, the dilemma would not have occurred.

However, the previous administration said that it was not responsible for farmers being owed by millers for rice shipped to Panama.

The People’s Progressive Party/Civic (PPP/C) Government, since being elected to office, has been working to correct this problem.

On November 27, 2020, the Ministry of Foreign Affairs and International Cooperation dispatched a letter to Panama, urging it to honour its obligations.

Guyana has shipped a substantial quantity of rice to Panama, after contracts were signed in 2018 and 2019; however, only part of the payment has been made on the 2018 agreement. In a letter to the GRDB, dated March 29, 2021, the Panamanian authorities stated that while they are willing to honour any pending debts to Guyana, they still need to comply with their own laws.