The Guyana Sugar Corporation (GuySuCo) has not received any bailout money and this will not happen until the process is taken to the National Assembly for approval, Finance Minister Winston Jordan has said.
Jordan told Stabroek News yesterday that subsequent to the availability of the treasury the final amount requested by GuySuCo will be discussed during an upcoming sitting of the National Assembly.
He clarified that the corporation has not finished reworking the finances required. Jordan said that as of right now the corporation’s original $16 billion bailout proposal has been rejected and cabinet was awaiting the Interim Management Committee’s (IMC) findings. The Finance Minister stated that as it relates to finances all discussions will be done in the National Assembly as is required.
On Thursday, Errol Hanoman and Paul Bhim returned to GuySuCo and assumed portions of their responsibilities as heads of the IMC. Stabroek News was informed that Hanoman will assume the post of Chief Executive Officer, a position he previously held in 2009-2010 while Bhim will step into the post as Director of Finance.
Bhim was elevated after Hanoman’s departure until he was replaced by Dr Rajendra Singh in early 2014. Singh was sacked by the government on Wednesday. This followed his bombshell announcement two weeks ago that unless $16 billion was plugged into the corporation an industry-wide shutdown was eminent. The government subsequently called the state-owned company’s bluff dismissing Singh as well as the entire Board of Directors.
The cash-strapped GuySuCo in the last few days managed to secure $400 million from the National Commercial Bank of Jamaica after the modification of a US$15 million loan agreement.
Meanwhile, the People’s Progressive Party yesterday finally commented officially on the state of the industry as General Secretary Clement Rohee lambasted the government for its dismissal of Singh.
Rohee said the PPP believed the firing of Singh was “another case of political victimisation against those perceived to be sympathetic to the previous PPP/C administration.” He chose not to acknowledge that Singh was not a perceived sympathiser, but is in fact on the party’s List of Candidates and therefore a potential Member of Parliament.
Rohee attempted to defend Singh’s tenure stating that it was the coalition government that said the former CEO was not performing.
Rohee said it was “nothing new” that the sugar industry was in need of massive bailouts. The party’s general secretary also deflected any responsibility on the part of the PPP which had been in office over the 23 years the industry has been in decline.
In a previous conversation Rohee had told Stabroek News, “I don’t know if it is a changing of the guard to solve the problem. I think it is a systemic and financial problem and that is what they have to grapple with.”
Pointing to the government’s plan to hold a commission of inquiry, Rohee noted that it would cost millions. He questioned where the money would come from and asked sarcastically, “What will it tell them? Where to find the money?”
