Dear Editor,
The GAWU saw in several sections of the media reports regarding the status of the $30B bond that was secured by the National Industrial and Commercial Investments Limited (NICIL) to re-capitalise the estates under the stewardship of the Guyana Sugar Corporation Inc (GuySuCo). The bond came to being after the, seemingly, clandestine transfer of the Corporation’s shares, among other things, to the Government’s holding company. The March 29, 2018 Stabroek News reported that the Special Purpose Unit (SPU) of NICIL, which apparently was instrumental in the bond’s birthing, said it would “…provide a much-needed capital injection, support infrastructure maintenance… and develop new co-generation capacity to support estate operations and sell to the national power grid”.
Our Union, as a concerned stakeholder, after learning about the bond, through media reports, sought an audience with NICIL-SPU and the GuySuCo regarding its plans for the large sum it was intent, at that time, to borrow. At an April 19, 2018 meeting with officials of the sugar corporation and the SPU, the GAWU learnt that monies were earmarked towards improving cane production and productivity as well as enhancing factory operations. Sums, we were told too, were identified for ventures into electricity generation and plantation white sugar. The GAWU, at that time, while welcoming the ideas did express concern that it appeared there was no firm plan to guide how the monies that would be secured will finally be spent. To that end, we urged NICIL-SPU and the GuySuCo to collaborate on working out the finer details of that plan. We even went as far as offering views to allow for a more rounded and well-thought-out road map.
Notwithstanding, what we felt was a valuable suggestion, the bodies charged with managing the affairs of the sugar industry have apparently not worked out a proper and workable plan. That suggestion, we must add, the GAWU has reiterated on many occasions. We should not fail to add that Minister of Finance, Winston Jordan, responding to questions, posed to him in Parliament by the Opposition, did say that a plan was worked out. We sadly have to say that we take the Minister’s utterances with a pinch of salt, as if such a plan does really exist it must be the most closely-guarded secret in the history of Guyana. Moreover, had such a plan really been a reality, the lamentations by NICIL’s Head (a.g.), Mr Colvin Heath-London and the responses by the Corporation’s CEO, Dr Harold Davis Junior, we believe, would not have been heard. Undoubtedly, the plan, among other things, would have clearly set out the parameters for disbursements and accountability. Rather than ironing out these matters very early on, we see the apparent chasms rising to the surface and complaints and disagreements between NICIL-SPU and GuySuCo appearing ever so often.
Also of concern to us, is that, so far, though roughly a quarter of the bond has been disbursed, no tangible progress has been seen. We recall that the Leader of the Opposition, Bharrat Jagdeo had previously expressed concern about the lag between implementation and the securing of the funds and the heavy interest costs that would have to be borne in the intervening period. From all appearances, the Opposition Leader was right as NICIL, according to the media, will channel to bondholders several hundred million dollars in interest while the specific capital works to secure the industry’s viability, it seems, appear nowhere on the horizon. Concerns, we see too, were expressed by NICIL regarding the probability of a default. This is something that is not in our interest especially considering that the bond has essentially mortgaged the assets of the Guyanese people. For the current and future generations of Guyanese this would be an unwelcome disaster.
The entire imbroglio that is unfolding, we see, as yet another manifestation of the Administration’s mis-adventure and, undoubtedly, poor policy making regarding the sugar industry and which will further negatively impact national interests. As we well know, the Government’s actions and or inaction regarding the industry has been one of the more difficult times of our nation’s recent history. It is a period, which has seen the largest retrenchment exercise in Guyana’s history and a period that has brought about tremendous hardship and grave difficulty for thousands of Guyanese people of varying walks of life.
Yours faithfully,
Seepaul Narine
General Secretary
GAWU
