In an advertisement published in the Stabroek News on Saturday, MRL stated that it is also concerned about the protection of the company’s business and the protection of farmers and their business. “In fact,” the advertisement said, “MRL has raised these issues with the Guyana Rice Development Board (GRDB) but they have not been addressed.”
The GRDB, it said, has indicated that they wish to do an audit of MRL. The advertisement further said: “MRL is seeking a joint approach with the GRDB with a view of obtaining directions in the conduct of the audit so as to protect the confidentiality of the process; such directions can be given by the courts in Guyana.”
GRDB General Manager Jagnarine Singh, speaking with SN briefly via telephone yesterday, said that MRL’s concern about the confidentiality of the process is unfounded.
“They are just trying to make frivolous and stupid excuses about why they are not allowing the audit…they have violated the Rice Factories Act…provisions are made in that act for the Rice Board to examine their records and I don’t see what it is they don’t understand,” Singh stated.
A source within the industry told SN yesterday that MRL’s concern about confidentiality has merit since its competitors are members of the rice board. However, when told about this Singh said that the report from the audit will not be going to the board of directors.
“The report will be presented to management,” Singh said. Last Monday, after GRDB had given MRL more than four weeks to get their records in order, a group of auditors visited the company’s main office at Mahaicony. MRL General Manager Taramatti Ghani reportedly refused to hand over records to the auditors thereby allegedly breaching section 10 (1) of the Rice Factories Act.
This section of the act states: “The Chairman or the General Manager of the Board, or any person authorized in writing by or on behalf of the Board or the head of any of the entities referred to in section 3(2) or anyone authorized in writing by or on behalf of such head, may at all reasonable times enter a rice factory and inspect it or any paddy or rice therein or any books kept under this Act or any written law.”
Minister of Agriculture Robert Persaud said last week that a file is being prepared by police and will be sent to the Director of Public Prosecutions. The Ministry of Agriculture, he also stressed last week is still offering to cover legal fees for farmers who which to move against MRL in court.
MRL owes hundreds of farmers more than $300 million for paddy supplied to them since the first crop this year. Farmers have been waiting in some cases more than eight months for payments.
In its advertisement on Saturday MRL stated that it “is confident that the difficulties will soon be over come and MRL will honour all their obligations.” The company has been in discussion with the Minister of Agriculture with the intention of settling all issues.
MRL, according to the advertisement, is the largest rice miller in Guyana and has been doing business here since 1991. It further said that it is committed to the development of the rice industry in Guyana and fully supports the government and their agencies in developing the industry.
Last month MRL proprietor Jai Beni, in a meeting with the Agriculture Minister, had admitted that the company was still suffering from the effects of the global financial crisis. However, he had promised that MRL would see to it that farmers were paid.
Shortly after this, it was announced that MRL would commence buying paddy to supply under a recently signed deal with Venezuela. This deal, valued US$38 million, offers Guyana a high price of $420 for a tonne of paddy which, according to Minister Persaud, is 75 percent more than what is being offered on other markets.
