Guyanese taxpayers must be central to the decision on the fate of GuySuCo’s future

By Rawle Lucas On In Business Review |
LUCAS STOCK INDEX The Lucas Stock Index (LSI) declined 0.15 per cent in trading during the first period of July 2015. The stocks of five companies were traded with 267,605 shares changing hands. There were no Climbers but there were two Tumblers. The stocks of Banks DIH (DIH) declined 0.5 per cent on the sale of 134,657 shares while that of Demerara Tobacco Company (DTC) fell 0.49 per cent on the sale of 2,775 shares. In the meanwhile, the stocks of Demerara Distillers Limited (DDL), Guyana Bank for Trade and Industry (BTI) and Republic Bank Limited (RBL) remained unchanged on the sale of 46,668; 544 and 82,961 shares respectively.
LUCAS STOCK INDEX The Lucas Stock Index (LSI) declined 0.15 per cent in trading during the first period of July 2015. The stocks of five companies were traded with 267,605 shares changing hands. There were no Climbers but there were two Tumblers. The stocks of Banks DIH (DIH) declined 0.5 per cent on the sale of 134,657 shares while that of Demerara Tobacco Company (DTC) fell 0.49 per cent on the sale of 2,775 shares. In the meanwhile, the stocks of Demerara Distillers Limited (DDL), Guyana Bank for Trade and Industry (BTI) and Republic Bank Limited (RBL) remained unchanged on the sale of 46,668; 544 and 82,961 shares respectively.

Historic institution

GuySuCo is now the subject of inquiry, which inquiry, among other things, aims to determine if the company could be saved. This is an important objective given the many people who rely on the enterprise for their livelihood. Guyanese looking on would be wondering what is going through the minds of the persons who were chosen to decide the fate of this historic institution. It will take some soul-searching on their part to make the right decision. It will also take some time before the curious taxpayers will receive the final verdict on this terminally-ill public behemoth. The final outcome will be the product of a synthesis of qualitative and quantitative factors that will be before the commissioners. What they will realize, whether they like it or not, is that they will have to bury GuySuCo. This article seeks to provide Guyanese with some of the variables and insights of the company that commissioners will encounter and to express why some taxpayers’ firmly believe that the company should be wound up. One could choose any year to begin the analysis of the performance of GuySuCo, but this article will examine the workings of the company from 2008 to 2013. This period was chosen simply because that was the period for which this writer could obtain reliable financial reports with which to analyze the performance of the company.

Self-financing

GuySuCo is a public enterprise that is supposed to be self-financing. It finds itself of course in the very unique position of having a split economic personality. In its home market, GuySuCo is a monopolist and the issue of its production has